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Lawyers slapped with fee hike as regulator scrambles to fix its ‘foundations’
The Solicitors Regulation Authority (SRA) is raising fees for solicitors and law firms to fund a regulatory reset after several major law firm collapses and growing pressure on its compensation fund. It says the higher contributions will help meet future obligations and support a strategy focused on spotting risks earlier.
The annual practising certificate fee will rise from £190 to £240 in 2026-27, a 26 per cent increase, bringing it to more than 65 per cent above its 2021-22 level. Solicitors’ compensation fund contributions will rise from £70 to £170, while firms’ fees will increase from £1,950 to £2,170. The SRA reported more than 500 claims linked to PM Law’s collapse, drawing £15.6m from the fund; it also plans improved complaint timelines, regular client updates and greater use of data to identify potential harm.
In short
- Practising certificate fees rise to £240.
- Solicitors’ fund contributions increase to £170.
- SRA plans earlier risk detection and a regulatory reset.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Higher fees could give the SRA the resources to meet compensation claims and strengthen early risk detection after major firm collapses exposed pressure on the system. Better complaint handling and client updates may also help protect clients and maintain confidence in legal services.
The case against
A sharp increase in compulsory fees places a real cost on solicitors and firms, including those that did not cause the collapses, and may ultimately be passed on to clients. Critics could question whether higher contributions are justified without clear evidence that the regulator’s new approach will prevent failures or use the additional funds effectively.
Explained simply
The Solicitors Regulation Authority (SRA) regulates solicitors and law firms in England and Wales. It sets rules for the profession and oversees a compensation fund that can help clients who lose money when a firm fails or a solicitor acts dishonestly.
When a law firm collapses, clients may struggle to recover money or continue their legal work, and claims can put pressure on the fund. The SRA is reviewing how it regulates firms, including how it spots risks and handles complaints, against a background of several large collapses.
The costs of regulation are shared by solicitors and firms through annual fees and contributions to the compensation fund. Changes to those charges affect the profession’s running costs and the resources available to protect clients.