Reforms to solicitors’ costs must be evidence-based

Today, 26 June, the Law Society of England and Wales announced its backing for reforms to solicitors’ costs rules but emphasised that these proposals must be reliably supported by robust evidence. The statement comes amid rising concerns regarding the Legal Ombudsman’s (LeO) ability to manage an expanded role, especially given the existing pressures faced by the system.

In response to a Civil Justice Council (CJC) consultation aimed at reforming solicitors’ costs set out in the Solicitors Act 1974, the Law Society highlighted several critical points. It indicated that the current proposals lack sufficient evidence regarding how the existing costs regime operates in real-world scenarios. Additionally, plans to transfer more costs disputes to the LeO raised alarms, particularly due to the Ombudsman’s ongoing struggles with capacity, resources, and a deficit of specialist expertise necessary for such an increase in responsibility.

Brett Dixon, Vice President of the Law Society, pointed out: “We support reforming solicitors’ costs in the Solicitors Act 1974 and hope that the changes will deliver a clearer, simpler and more modern system that is fair to both solicitors and clients. This is a pivotal opportunity to reform a system that is no longer fit for purpose.” He also cautioned against the current inadequacies in data related to the operation of the costs regime, stating, “There is currently inadequate data about how the current costs regime operates in practice, making it difficult to assess whether the proposals are necessary, proportionate or workable.”

Furthermore, Dixon noted the long-standing backlog faced by LeO, asserting, “LeO, meanwhile, has been battling a backlog of cases for years and has consistently failed to deliver its core statutory function, a speedy resolution service." He urged that these proposals risk overwhelming the Ombudsman, emphasising that it should continue to focus on meeting consumer demand and enhancing its performance prior to assuming additional responsibilities.

Concluding his remarks, Brett Dixon affirmed, “The CJC’s proposals are well-intentioned, but any reforms must keep pace with the rapid changes taking place across the legal profession.” He remarked on the transformative impact of technology and artificial intelligence on legal services, adding that the delivery of these services is diversifying through unbundled legal options and alternative dispute resolutions. He expressed optimism for continued collaboration with the CJC to ensure that any reforms developed will be practical and effective in addressing the evolving legal landscape.