The Solicitors Regulation Authority (SRA) is set to resume its efforts in enhancing cost transparency for consumers, potentially requiring law firms to disclose prices in a broader array of legal services.
This initiative comes after a temporary pause in the SRA’s agenda due to shifting priorities. The newly revised business plan for 2024/25, unveiled following consultation, highlights increased focus on transparent cost structures as a means to bolster confidence and trust in legal services. According to stakeholder perception research, clarity in pricing remains a significant driver of trust among consumers.
In response to these findings, the SRA’s updated strategy includes possibly expanding cost transparency rules to cover additional legal areas beyond commoditised services like conveyancing and probate. However, challenges remain, particularly in areas such as family law, where pricing structures are not straightforward. The SRA acknowledges the difficulties in estimating final costs without prior discussion on legal matters, warning that upfront price ranges might dissuade consumers from seeking legal advice, thereby creating an access to justice issue.
Moreover, the business plan addresses the need for a more nuanced approach to bulk claims handling, driven by the fallout from recent high-profile law firm failures. The SRA is contemplating a long-term framework to manage such cases more effectively to minimise consumer detriment.
SRA chair Anna Bradley indicated that accommodating these new initiatives within the existing £157 million budget would necessitate difficult decisions. While reprioritising efforts and enhancing efficiencies are on the table, reserve funds may also be utilised, potentially leading to increased practising fees in the subsequent year.
The proposal aligns with recent rule changes approved by the Legal Services Board, compelling CILEx-regulated law firms to provide comprehensive price and service information across all legal offerings, a first in the sector. Paul Philip, SRA’s chief executive, noted the potential for adopting similar measures, though discussions are still underway.
The SRA’s move towards greater transparency and improved consumer protection underscores its commitment to addressing evolving challenges within the legal sector. By leveraging stakeholder feedback and detailed research, the authority aims to equip consumers with the necessary information to make informed legal choices.
The SRA’s renewed efforts towards price transparency and bulk claims management reflect a strategic shift in response to consumer demands and recent industry challenges. This proactive stance is expected to enhance consumer trust and ensure better regulation of the legal services market.
