Trainee numbers have decreased

The SRA's training reforms are confusing the legal market, explains Max Harris

Last week, we were alerted to statistics, first released by Douglas Scott Recruitment, which seemed to show the number of trainee solicitors had increased by 65 per cent in 2014.

Our first reaction was "this is really great news". However, given the JLD's ongoing interaction with the SRA on these figures, we were concerned that there may have been a mistake due to the confusion which has been caused by recent regulatory changes.

On closer look, the JLD's position is that the statistics released must be incorrect. It appears that the mistake, understandably, arose due to constantly changing SRA terminology. We have consistently told the regulator their reforms are confusing the legal market, and therefore sympathise with our friends at Douglas Scott who were only reporting on the information given to them. The JLD has now seen the information, and agree it was confusing. I have no doubt Douglas Scott, and all those that shared the story, acted in good faith.

Clarifying terminology

It is important to note that training contracts and "periods of recognised training" (PRT) are, for all intents and purposes, the exact same thing. This appears to be where the statistics went wrong.

Training contracts ceased to exist on 1 July 2014. They were rebranded as PRTs after this date. To clarify the difference:

• Training contracts were the name for official training positions which were registered before 1 July 2014and governed by the 2011 SRA Regulations.

• PRT is the current name for official training positions registered on or after 1 July 2014. These are governed by the 2014 SRA Regulations.

It is possible for individuals who were registered on training contracts to convert to a PRT and benefit from the greater flexibility under the 2014 regulations, but not mandatory.

Many people confuse PRT with "equivalent means qualification", which was also introduced in July 2014. In short, the latter will allow LPC graduates with sufficient experience to qualify as a solicitor if they can prove they have done the equivalent to a training contract. The JLD is reliably informed that at least one person has qualified through this route already. Guidance is currently being drafted. Equivalent means qualification is not the same as a PRT.

Regulatory context

Before 1 August 2014, the SRA regulated the minimum level of pay for trainee solicitors during the period of their training contract. Firms were required to pay trainees £18,590 if they were in Central London, and £16,650 elsewhere.

On 1 August 2014, the SRA abolished the regulatory minimum salary for trainee solicitors. Therefore, the wage for trainee solicitors is solely governed by national law.

The Law Society and the JLD are currently looking to implement a recommended minimum salary, because this abolition has been a huge step back for diversity and social mobility in the profession. The profession will be consulted about this proposal shortly.

Back to the numbers

We should defend our statement that the statistics must be incorrect. The JLD has been provided with official statistics from the SRA which shows that 5,097 training contracts were registered between 1 July 2013 and 30 June 2014. It is impossible any PRTs were registered in this time, as they did not exist.

Only a small proportion of those training contracts will have been in the 2014 calendar year (as this figure of 5,097 includes training contracts registered between July and December 2013). Training contracts, to use the correct terminology, couldn't be registered after 30 June 2014. Therefore, training contracts must have been far below 5,541 in the 2014 calendar year.

We have yet to understand the figures provided to Douglas Scott, but it is possible that 5,541 amalgamates training contracts and PRT. But this is only a guess. The latest official SRA statistics only show the period from 1 July 2013 to 30 June 2014, which we have reported above.

Comparative figures

In the period between 1 July 2013 and 30 June 2014, 5,097 training contracts were registered. The year before, 5,299 training contracts were registered. Rather than a 65 per cent increase, there has in fact been a 4 per cent decrease. The JLD is aware that training contracts were being deferred until after the abolition of the minimum salary came into force. Therefore, this decrease is not surprising. Incidentally, the number of individuals graduating from the LPC slightly increased in this period from 6,036 individuals to 6,171 individuals.

As the representative body for junior lawyers, including LPC students, graduates and trainees, there is little that we would want more than an increase in training contracts. However, it is important to ensure accurate information is available to students, and hence we have written this response. We hope we have cleared up these statistics, but as always, please feel free to get in touch.

Max Harris is chair of the Junior Lawyers Division of the Law Society

juniorlawyers@lawsociety.org.uk