Individual practising fee levels for 2022/23 have been approved by the Legal Services Board (LSB).
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 funding requirement for all organisations is £114.7mn, a £10.4mn increase from £104.3mn in 2020/21.
Individual fees for this year, as agreed by the LSB, will be £286. The SRA’s share of PC fees will rise slightly from £145 to £151.
The compensation fund contribution for individuals will be reduced from £40 in 2021/22, to £30 for 2022/23. Firm contributions to the compensation fund will also fall from £760 to £690.
The fund makes discretionary payments to those that have lost money in certain circumstances, when a solicitor misappropriates or fails to account for money when providing legal services. It is a key part of the regulatory framework and helps to maintain trust and confidence in regulated law firms.
The agreed SRA budget and funding will allow the SRA to pursue the priorities laid down in its final 2022/23 Business Plan and the last year of its three-year Corporate Strategy. The consultation on the Business Plan included the budget and the SRA’s element of practising fee.
Practising fees and compensation fund contributions are collected in October as part of the annual renewals process.
Law Society president I. Stephanie Boyce said:
“We acknowledge the LSB’s sensible decision for a small increase in the PC fee, which will underpin support for the profession and enable the Law Society to serve solicitors in England and Wales better.
We understand the economic environment businesses and individuals are facing with rising inflation and the cost-of-living crisis, and our request for a 15% increase for the Law Society’s work was based on a thorough investigation about what our members want.
Our largest ever member consultation revealed 67% of respondents supported the Law Society’s proposal to increase the amount we receive from the practising fee in 2022-23.”
I. Boyce went on to detail the “ambitious plans” the Society has to deliver what members feel is important:
“This includes supporting professional excellence through events, e-learning, career development, practice guidance, free helplines, library enquiries and newsletters on a range of practices and topics. We will support our members to build on progress in diversity and inclusion, while remaining resilient and competitive in an ever-changing landscape.
We will continue to address threats to the rule of law, defend the profession from political attacks and highlight the valuable contribution that solicitors make to society.”
This table shows the most recent individual PC fees and compensation fund contributions for individuals and firms.
| Practising year | Individual PC fee | Compensation Fund, individual contribution | Compensation Fund, firm contribution |
| 2015/16 | £320 | £32 | £548 |
| 2016/17 | £290 | £32 | £548 |
| 2017/18 | £278 | £40 | £778 |
| 2018/19 | £278 | £90 | £1,680 |
| 2019/20 | £278 | £60 | £1,150 |
| 2020/21 | £278 | £50 | £950 |
| 2021/22 | £266 | £40 | £760 |
| 2022/23 | £286 | £30 | £690 |
