The Solicitors Regulation Authority (SRA) is evaluating potential fee increases in response to new and emerging challenges within the legal sector.
- Recent months have seen the SRA identify rising risks, including increased bulk claims litigation and a need for a consumer protection review.
- The SRA is currently reviewing its data management practices to better identify future risks and improve consumer protection.
- Chief Executive Paul Philip emphasises the importance of consumer-focused strategies in their 2024/25 business plan.
- Any decision on fee increases remains uncertain, with the SRA carefully considering resource allocations and potential impacts on the profession.
The Solicitors Regulation Authority (SRA) is poised to potentially increase fees for solicitors, as it grapples with new challenges within the legal sector. Recent trends have compelled the regulator to reconsider its resource allocation in light of emerging risks, such as the rise in bulk claims litigation, which has been highlighted following the collapse of SSB. Additionally, a consumer protection review is underway to address necessary reforms to the compensation fund.
The SRA’s focus extends to improving its data management capabilities, with aims to harness its extensive data to spot trends that could indicate future challenges. This strategic move is deemed essential for enhancing consumer protection.
Paul Philip, the Chief Executive of the SRA, highlighted, ‘Consumers are at the heart of our strategy and this business plan.’ He noted the SRA’s responsiveness to feedback, focusing on changes that benefit consumers, aiming to enhance the ability to preemptively identify and mitigate potential risks.
Budgetary pressures have intensified, as the SRA considers fee increases amidst a £10m budget surge. The necessity to make ‘hard choices’ regarding resources was underscored in a recent briefing, although specific resource requirements remain undetermined.
The legal profession is understandably apprehensive about the prospect of increased fees, particularly following recent demands for higher contributions to the compensation fund. However, the SRA remains committed to prioritising consumer protection while exploring ways to efficiently manage its resources and data. Chair Anna Bradley articulated the need for the SRA to ‘get on the front foot’ and proactively address potential detriments to legal service users before they escalate.
The SRA’s future decisions on fee adjustments will be closely monitored, as they balance new sector risks with consumer protection imperatives.
