The Solicitor Regulation Authority (SRA) has revealed that its Legal Services Board (LSB) has agreed to lower the individual practising fee levels for 2021/22.
As a result of these changes, the individual fee will be £266, down £12 from last year. Firm fees are calculated based on turnover.
Practising fees are used to pay statutory levies to the LSB, the Legal Ombudsman, the Solicitors Disciplinary Tribunal and Office for Professional Body Anti-Money Laundering Supervision, and to fund representation by the Law Society, as well as the SRA.
Fees are set at a level necessary to meet this total funding requirement, which for 2021/22, is £56.8m. The funding requirement for all organisations is £104.3m, a £3.1m increase from £101.2m in 2020/21. However, the continued rise in the number of practising solicitors means that individual fees will be less than last year.
The fund makes discretionary payments to those that have lost money in certain circumstances, for example, when a solicitor “misappropriates or fails” to account for money when providing legal services.
Paul Philip, chief executive, SRA, said: “This has been the second year of what has been a difficult time for everyone. I am pleased to confirm a fall in both practising fees and compensation fund contributions at a time when we know that the long-term implications of the pandemic are uncertain for many businesses.