LSB confirm practice fee and Compensation Fund contributions to fall
The Legal Services Board (LSB) have confirmed that individual practising fees will be £266 in 2021/22… a £12 reduction from 2020/21 and a 17% reduction over the last 6 years.
Despite an increase in the SRA’s funding requirement he continued rise in the number of practising solicitors means that individual fees will be less than last year.
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 work of the SRA. The SRA’s funding requirement 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.
The proposed fees were set by the Board of the Solicitors Regulation Authority (SRA) in July and the LSB has approved these recommendations. The individual fee will be £266, down £12 from last year. Firm fees are calculated based on turnover.
Compensation Fund contributions for the next practising year are also set to fall, from £50 last year to £40 this year and for firms holding client money from £950 to £760.
Paul Philip, SRA Chief Executive, 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.’
The agreed SRA budget and funding will allow the SRA to pursue the priorities laid down in its 2021/22 Business Plan and its three-year Corporate Strategy. The consultation on the Business Plan included the budget and the SRA’s element of practising fee.