Unbundled legal services reach new heights

The Legal Services Consumer Panel has revealed its 2025 Tracker Survey, shedding light on consumer trends in the legal services sector. One of the most noteworthy findings is that the proportion of consumers opting for unbundled legal services, where tasks are divided between the client and the legal provider, has reached a record high of 21%. This figure marks the highest level since the panel began tracking these services in 2014, with a notable increase from 18% in 2024.

The survey highlights significant variations in the adoption of unbundled services across different legal areas. Consumers using legal services for probate had the highest rate at 39%, followed closely by trademarks at 36%, employment disputes at 35%, and immigration matters at 34%. This trend indicates that as financial constraints intensify, individuals are increasingly seeking out more flexible and affordable options for legal assistance.

Satisfaction levels among consumers remain robust, with 88% pleased with the services received, up from 87% in the previous year. Moreover, 89% expressed satisfaction with the outcomes of their legal cases, demonstrating a positive relationship between consumers and their legal providers.

Interestingly, the survey reveals that face-to-face services are more prevalent among lower socio-economic groups, with 48% receiving in-person legal assistance compared to 43% of those from higher socio-economic backgrounds. Additionally, 57% of consumers reported that their legal fees were calculated as fixed costs, while only 10% were charged based on hourly rates.

The factors influencing consumer trust in legal professionals are also noteworthy. An overwhelming 90% of respondents indicated that being regulated increases their trust, followed by 89% who value specialisation and 88% who appreciate clear explanations from their legal providers. Despite this, approximately 53% of consumers admitted they would not know how to make a complaint if dissatisfied with their legal services. Among those aware, only 49% would contact the firm directly first, with 27% preferring a third party for complaints and 20% lacking trust in their provider's ability to address issues properly.

Tom Hayhoe, Chair of the Legal Services Consumer Panel, commented on the findings, stating "It is scandalous that so many people who need legal advice cannot afford it. Innovative and affordable delivery models are no longer optional; they are essential to ensuring everyone can access a level playing field, not just those who can foot the bill." Hayhoe further urged regulators to take actionable steps towards accommodating unbundling in the legal services market, emphasising the urgent need for enhanced access to justice.

As the legal landscape continues to evolve, the findings from this survey spotlight the importance of adapting to consumer needs and the critical role of regulatory bodies in supporting these changes