Evidence Compendium
THE STATE OF LEGAL SERVICES 2020 CONTENTS
1. Framework and data sources 4 Our approach 5 Data sources 6 2. Environmental context and drivers of change 8 Data from LSB’s Covid-19 dashboard 12 3. Access to legal services for all 14 Summary 15 Snapshot of legal needs 16 Unmet need and barriers to access 19 Legal capability 22 Advice seeking 24 Perceived accessibility of the justice system 26 Paying for legal services 30 Public funding and health of the third sector 33 4. Competition working for consumers 40 Summary 41 Shopping around on price and quality 42 Comparison tools 48 Price competition 49 Levels of innovation and technology adoption 53 Unregulated market 58 The State of Legal Services 2020 § Evidence Compendium § 3
5. Regulation that commands public and professional confidence 62 Summary 63 Quality of legal services 64 Seeking redress 70 Professional conduct 75 Perceptions of legal professionals 82 Regulation: awareness and general public confidence 84 Confidence in the legal system 85 Independence of the legal system 88 6. A diverse and inclusive profession 92 Summary 93 Introduction 94 Availability of data 95 Protected characteristics 96 Socio-economic background 108 Mental health and wellbeing 113 Diversity of judiciary 115 7. A successful and sustainable profession 118 Summary 119 Snapshot of sector 120 Alternative business structures and external investment 123 Economic health of sector 125 The impact of Covid-19 127 Legal aid sector 130 Cost of regulation 132 International standing of jurisdiction 136 8. Endnotes 140 1. FRAMEWORK AND DATA SOURCES The State of Legal Services 2020 § Evidence Compendium § 5
Our approach
1. This evidence compendium forms part justice are both cornerstones of the rule of an assessment of the state of legal of law. Inevitably, there is also degree services in England and Wales in 2020. The of overlap between the five themes, LSB has undertaken this to inform the for example strong competition is an development of a new strategy for legal important enabler of greater access to services regulation. This volume should legal services. The five themes are: be read alongside a separate narrative § Access to legal services for all volume where cross-cutting themes and § Competition working for consumers conclusions are identified. § Public confidence in regulation 2. The compendium is organised into five § A diverse an inclusive profession themes representing high-level outcomes § A successful and sustainable where legal services regulation in England profession and Wales can potentially make the most positive difference for society. The 4. We use a series of proxy measures, sections are closely aligned to the eight statistics, survey evidence and statutory objectives in the Legal Services commentary to assess progress made Act 2007 that bind all the regulatory towards achieving the outcomes. Where bodies1. possible we look back at the last decade of legal services regulation since the 3. We decided on a thematic approach due LSB assumed its powers in 2009, but to the overlap between the regulatory particularly focus on the last three years. objectives and to aid the narrative The evidence compendium was completed flow of the document. For example, in early October 2020. understanding the law and access to 6 § The State of Legal Services 2020 § Evidence Compendium
Data sources
LSB surveys Other sources
5. The analysis draws on multiple waves 6. The analysis also draws on a range of of four large-scale quantitative surveys other data sources, including: commissioned by the LSB: § Diversity data from the regulators § Individual Legal Needs Survey (2019, (provided directly to LSB or via their 2015, 2012) – adults based in England websites) and Wales (28,663 in 2019, 16,694 in § Complaints data from the regulators 2015 and 4,017 in 2012) on the legal and the Legal Ombudsman issues they experienced in the four § Data from the Office for National years prior to the survey, the action Statistics (ONS) including on: they took and the help they used to § Population estimates of England resolve them and Wales § Small Business Legal Needs Survey § Ethnicity (2017, 2015, 2013) – owners and managers of businesses, in England § Turnover and GDP and Wales, with fewer than 50 § Employment and labour market employees (10,579 in 2017, 10,686 in § Data on businesses 2015 and 10,535 in 2013) on the legal § Legal Services Consumer Panel Tracker problems they experienced in the last Survey on consumer perceptions and 12 months, the action they took and experience carried out annually for the the help they used to resolve them last ten years § Innovation and Technology (2018, § Indicators from: 2015) – legal services providers in § The World Economic Forum Global England and Wales (1,502 in 2018 Competitiveness reports and 1,500 in 2015) on their use of technology (such as cloud storage or § The World Bank Worldwide automated document analysis) and Governance Indicators innovation (including new services or § The World Justice Project Rule of ways of delivering them) in the three Law Index years prior to the survey § Published reports including from: § Prices (2020, 2017, 2015) – legal § The Equality and Human Rights services providers in England and Commission Wales (1,501 in 2020, 1,491 in 2017 § The Social Mobility Commission and 1,506 in 2015) on the prices of § services in three blocks of scenarios: House of Commons Justice conveyancing; divorce; and wills, trusts Select Committee and House of and probate. Commons Library § Ministry of Justice § Law Society (including their indemnity insurance survey) § SRA (including annual reports) The State of Legal Services 2020 § Evidence Compendium § 7
§ BSB (including enforcement Diversity considerations reports) § Bar Council 7. To measure differential impacts on consumers, where possible, we provide § UCL – UK Judicial Attitudes Survey breakdowns of survey data against several § Sector and benchmarking reports of the protected characteristics. However, from KPMG, LexisNexis, PwC and even in the largest of our surveys, which Thomson Reuters has a sample of more than 28,000 respondents, it has not always been possible to provide a fully segmented breakdown due to low base sizes.
8. In relation to ethnicity, we have grouped the results as follows, in line with reporting conventions used by the ONS2.
Figure 1.1: ONS ethnic group categories
GROUP FOR ANALYSIS ETHNIC GROUP
Indian
Pakistani
ASIAN Bangladeshi
Chinese
Any other Asian background
African
BLACK Caribbean
Any other Black / African / Caribbean background
White and Black Caribbean
White and Black African
White and Asian MIXED MULTIPLE ETHNIC Any other Mixed / Multiple ethnic background
Arab
Any other ethnic group
English / Welsh / Scottish / Northern Irish / British
Irish WHITE Any other White background
Gypsy or Irish Traveller 2. ENVIRONMENTAL CONTEXT AND DRIVERS OF CHANGE The State of Legal Services 2020 § Evidence Compendium § 9
9. To assess if the five outcomes for society 10. In the box, we list our observations of key identified in the previous section have drivers of change over the last three-years. been achieved, we need to understand the drivers for change that impact on the market.
KEY DRIVERS OF CHANGE
Equality, diversity and inclusion by the creation of the LawTech Delivery Panel and other initiatives § Covid-19 is widening and entrenching inequalities in society § Covid-19 is accelerating use of technology to deliver legal services and § Increased demonstration of the public remote justice mood to injustice stemming from deficiencies in diversity and inclusion. § Developments in wider society making The Black Lives Matter and MeToo technological delivery of legal services campaigns are significant signals of a the norm global impatience with evident equality § Key areas of development in legal gaps services include: the infrastructure § Disciplinary bodies taking greater underlying services delivery; decision interest in personal conduct involving support tools and marketplaces; end- EDI issues user functionality § Increased focus on social mobility, which § Signs that developments in technology is stagnating in society as a whole are beginning to benefit ordinary consumers and small businesses, as § EHRC turning its spotlight on the well as large corporate clients criminal justice system and legal aid § Growing cyber threats from criminals § Strengthened legislative requirements, and state actors e.g. gender pay gap reporting § Ambitious courts modernisation The UK’s exit from the European Union programme with technology at its heart § Negotiations on the future relationship Market developments between the UK and EU § A 24% rise in numbers of lawyers since § Widespread concern about the possible 2010/11 damaging consequences of EU exit for legal services, including on mutual § A trebling of alternative business recognition of professional qualifications, structures (ABS) in the last five years and cross-border practice rights and labour growth in other types of alternative legal mobility service provider § Large number of lawyers registering in § All the big four accountancy firms Ireland obtaining ABS licenses. Universities, local authorities and charities are among the Technology types of not-for-profit organisations that have also taken advantage of the ABS § Government ambitions for the Fourth regime Industrial Revolution and the tech sector becoming a major area of growth for the § Market consolidation UK economy mirrored in legal services 10 § The State of Legal Services 2020 § Evidence Compendium
§ Shift away from the partnership model victims, the family courts and judicial towards greater incorporatisation review § Changes in the financing of law firms: Covid-19 pandemic listed firms, private equity, litigation funders 11. An exceptional driver of change is the Covid-19 pandemic. Covid-19 Legislative, regulatory and policy is unprecedented and the full developments implications for the economy and § The impact of the Legal Aid Sentencing society, and the specific impacts and Punishment of Offenders Act on legal services, are unclear and (LASPO) reforms, the Ministry of Justice still being played out. The LSB has legal support strategy and legal aid compiled a dashboard bringing policy reviews multiple sources of data together to help increase understanding within § Funding reforms impacting on the sector of the consequences of employment tribunals, personal injury, the pandemic on consumers and civil litigation providers. § Market transparency requirements following a market study by the 12. These indicators can only provide Competition and Markets Authority a partial picture due to the (CMA) and its current progress review unavailability of data and time lags (in the reporting of data and § The Commission on Justice in Wales set because some of the consequences a long-term vision for the justice system of Covid-19 will take time to work in Wales, and calls by some stakeholders through). There is strong anecdotal for a separate legal jurisdiction evidence of suppressed demand § Renewed calls for reform to the where people are deferring seeking legislative framework following the help until advice centres reopen independent review conducted by physically, even when they have Professor Stephen Mayson been offered phone or online § New legal services regulators and consultations. Future spikes in providers able to offer a wider range of advice needs are anticipated as legal work the government ends emergency measures introduced at the start § New admission paths to qualify as a of lockdown, e.g. benefits and lawyer employment, housing repossession § Intense focus on anti-money laundering hearings. § Switch to the civil standard of proof for 13. Some of the key developments so all disciplinary bodies far, include: § A significant law reform programme, § Consequences for the rule of law (e.g. with examples including ‘no fault’ the temporary halting of criminal divorce and Law Commission trials, debate on the future of jury projects relating to property, wills and trials and remote hearings as default employment claims in civil and family cases) § Reviews and planned overhauls of the criminal justice system and rights for The State of Legal Services 2020 § Evidence Compendium § 11
§ Consequences for the administration pandemic has prompted debate on of justice (e.g. escalating backlogs of the appropriate limits of technology. cases) 15. Covid-19 is having disproportionate § Demand for advice and support impacts across several protected soaring in some areas and falling in characteristics. For example, the others disease is hitting BAME communities § Organisations that people rely on for harder and this is having wider legal advice facing new challenges societal impacts that include an to their ability to continue to provide increased need for legal advice and services, although there have been support. There is a greater impact welcome injections of funding from on a range of other groups including government and private sources women (e.g. increase in domestic violence) and disabled people (e.g. § Increased use of technology to deliver employment rights, benefits, hate legal services and acceleration of crime). digital transformation programmes by public agencies (e.g. HM Land 16. Covid-19 is having, and will continue Registry, Office of the Public Guardian, to have, severe ramifications for the Intellectual Property Regulator) UK economy with a deep recession § Changes to the substantive law, e.g. likely. On the latest figures at the permitting video-witnessed wills time of writing, Gross Domestic Product (GDP) fell by 19.8% in § Threats to the sustainability of parts of Q2 2020 (the largest quarterly the profession (see Section 7) contraction since records began) § Challenges for regulators (e.g. and down 21.5% compared to maintaining qualification routes, Q2 20193. The Office of Budget investigations), complaints bodies Responsibility (OBR) has modelled (e.g. delays due to staff availability a central scenario of -12.4% GDP and reduced engagement from in 20204. Household consumption complainants and respondents) and in the UK fell by 23.6% in Q2 20205. disciplinary bodies (where there Unemployment for the three have been different approaches to months to July 2020 was 4.1% with conducting remote hearings) the OBR’s central scenario projecting a peak unemployment rate of 11.9% 14. The pandemic has triggered in Q4 20206. At the end of July 2020, innovation resulting in changes to 4.8m jobs had been furloughed, service delivery that would normally down from a peak of 8.9m in May take years compressed into a matter 20207. Analysis by the Resolution of months. The disruption should Foundation suggests that existing present opportunities to develop low earners households have been and embed new and innovative ways hardest hit and they are increasingly of working in the longer term that moving away from savings to could help to address unmet legal high-cost debt8. The IHS Markit need. It is also enabling law firms Households Finance Index shows the to realise efficiencies and embrace largest fall in overall perceptions of flexible and remote working with financial wellbeing since the survey benefits for diversity. However, the began in 20099. 12 § The State of Legal Services 2020 § Evidence Compendium
Data from LSB’s Covid-19 impact dashboard
EMPLOYMENT POWERS OF ATTORNEY, DEATH AND PROBATE § 41% more employment issues brought to Citizens Advice in August 2020 § Power of attorney registrations with the compared to a year ago, reaching Office of the Public Guardian are down 29,000. This is down from a peak of by half (51%) in June 2020 compared to 44,951 issues in April 2020 the year before, to 34,322. The figures are down by 61% from a peak of 89,015 § Employment tribunal receipts up 34% in registrations in October 2019 June (4,000) compared to a year ago; this is likely to be an indicator to watch as § Deaths are up 11% in June 2020 (42,600) furlough arrangements taper to the year before – leading to an increased demand for probate and BENEFITS estate administration. Deaths peaked at 88,049 in April 2019 § A 29% increase in Universal Credit starts (239,504) in July 2020 compared to a PERSONAL INJURY year before. This is down from a peak of 1,221,645 starts in April 2020 § Injury claims submitted to the Personal Injury Claims Portal are 36% down in July CONVEYANCING 2020 compared to a year ago (44,773) § Conveyancing applications to the Land THE COURTS Registry dropped to 328,000 in June 2020 (12% down on last year) – this has § The number of outstanding Crown court picked up from an 84% year-on-year fall cases increased by 24% from June 2019 in April to June 2020 (42,018). In Magistrates’ courts outstanding criminal cases FAMILY are 44% up over the same period (to 437,421). (Data for civil courts are not § An average increase of around 50% in available.) calls to the National Domestic Abuse Helpline, run by Refuge, and a four- § The significant backlog of court cases fold increase in its website traffic since had already reached 39,218 in Crown lockdown began courts and 318,006 in Magistrates courts by February 2020. It is therefore IMMIGRATION AND ASYLUM clear that while the problem has been exacerbated by the Covid-19 pandemic § A 54% fall in tribunal receipts (1,390) in it was not caused by it June 2020 compared to the year before (3,046), but a sharp increase from 508 receipts in May 2020
§ The State of Legal Services 2020 § Evidence Compendium § 13 3. ACCESS TO LEGAL SERVICES FOR ALL The State of Legal Services 2020 § Evidence Compendium § 15
Summary
Barriers to access § About 3.6 million adults a year have § There has been a rise in litigants in an unmet legal need involving a person who face inequality of arms. dispute, because either they did not get Covid-19 will likely increase this further professional help, it too long to resolve when courts are facing substantial their issue, or they would have liked backlogs more information or assistance § Many not-for-profit organisations have § Higher levels of unmet need among closed or faced big cuts in income, while BAME communities, younger people, there is evidence that ‘advice deserts’ low income households and people with have emerged in some areas of law a low level of education § There has been a growth in fixed fee § Strong linkage between legal capability deals, which are cheaper and offer and unmet need – people with low greater certainty over costs – including legal capability are less likely to get in more complex or bespoke areas of professional help, are less satisfied with law the service they receive and are less § Most people who pay for legal services likely to feel the outcome was fair access savings, but at least a third of § Evidence of rational decision-making those in BAME communities borrow about whether to obtain professional money help, but common access barriers § Legal expenses insurance is little used involve lack of confidence, knowledge despite 8.6m adults having policies and cost § Most people’s impressions of the civil Small businesses justice system are that it is expensive § 1.8 million small businesses experience and poorer people are at a disadvantage legal issues every year, but half handle these issues alone and only a quarter Financing legal services obtain professional help § Expenditure on civil legal aid fell by § BAME and disabled business owners are 46% in real terms between 2010/11 more likely to have legal needs, while and 2015/16 from £1.2bn to £650m, the smallest businesses face the highest although it has risen by 21% since then barriers to accessing advice and the Ministry of Justice has published a vision for legal support and action plan § Total annual losses to small businesses due to legal problems is estimated at § Legal aid is available to fewer people £40bn and over 1 million individuals due to changes in coverage and suffer ill health eligibility thresholds. The LSCP Tracker Survey 2020 suggests it now funds only § Only 1 in 10 small businesses view 2% of legal needs lawyers as cost effective and perceived cost is a key barrier to access, but only 1 § Millions of people are considered to fall in 5 small businesses shop around into a ‘justice gap’ – they cannot afford legal services but do not qualify for legal § Positive developments include the aid – which Covid-19 will make worse emergence of tech-enabled low-cost services 16 § The State of Legal Services 2020 § Evidence Compendium
Snapshot of legal needs
Individuals
17. Six in ten adults (64%) experienced a legal categories. This shows differences by issue in the last four years, or 7.5 million ethnicity and disability that provide adults a year. 53% of respondents had important context for the sections that a contentious issue (involving a dispute). follow. For example, Black and Asian The most common legal needs relate to respondents are far more likely to consumer issues, neighbour disputes, experience legal issues connected with property, wills and employment. rights and involve disputes, whereas having lower incidence in more 18. In many cases, differences between transactional areas such as conveyancing the types of issues experienced can and will-writing. This is likely to reflect be attributed in part to the types of a range of socio-economic factors issues people tend to encounter within associated with these groups unrelated to varying demographic groups. Age is the legal services market. often a determining factor, with younger adults, for example, being more likely 20. There are also some differences for to experience issues related to property, respondents reporting a disability, with employment, and welfare and benefits. this group more likely to experience issues relating to injury, rights of individuals, and 19. For the purposes of analysis, we have wills, trust and probate. This group was grouped the 34 legal issues in the LSB less likely to report other issues, especially Individual Legal Needs Survey into eight conveyancing.
Figure 3.1: Analysis of legal needs by ethnicity and disability10
LEGAL ISSUES NO FACED WHITE MIXED BLACK ASIAN DISABILITY DISABILITY
Rights of individuals 5% 7%* 12%* 12%* 6%* 4%
Consumer 9% 6%* 3%* 9% 8%* 10%
Conveyancing 10% 8% 3%* 5%* 6%* 11% (residential)
Family 10% 11% 16%* 15%* 10% 10%
Injury 11% 14% 4%* 7%* 13%* 10%
Property, construction, 19% 23% 30%* 20% 19% 20% planning
Employment, finance, 22% 28%* 24% 26% 23% 21% welfare, benefits
Wills, trusts, probate 15% 5%* 8%* 6%* 16%** 14%
* Statistically significant; ** Close to being significant The State of Legal Services 2020 § Evidence Compendium § 17
Figure 3.2: Incidence of individuals’ legal needs11
Issue with a defective good/ service or professional 26%
Issue with anti-social behaviour by neighbours 14%
Bought or sold, or tried to buy or sell, a house or flat 11%
Made/ changed or tried to make/ change a will 11%
Issue to do with employment 11%
Dealt with the estate of someone who has died 10%
Issue with a rented property 9%
Been involved in a road traffic accident 9%
Issue with incorrect/ unfair parking fines 8%
Issue with debt 8%
Issue with welfare/ tax benefits, state pension or student loans 8%
Made or tried to make, register or end a lasting power of attorney 7%
Issue to do with treatment for mental health 7%
Domestic violence 6%
Issue with personal finance 5%
Re-mortgaged a property/ transferred equity in a property 5% Experienced an injury/ illness caused by an accident at work or working conditions 3%
Issue to do with them or their children s school education 3%
Been homeless/ threatened with being homeless 3%
Dealt with a planning application 3%
Issue as part of a relationship break up 3%
Issue with an owned property 3%
Faced eviction or the threat of eviction from a rented property 3% Experienced an injury/ illness as a result of an 3% accident caused by someone else
Issue with housemates or sub-tenant 3%
Experienced an injury/ illness caused by a health professional 2%
Been involved in a divorce 2%
Been treated badly by the police 2%
Been arrested 1%
Uk immigration issue/ dispute 1%
Issue with a tenant or squatter 1%
Issue to do with child protection 1%
Adopted/ fostered/ tried to adopt a child, 1% or applied to become a foster carer Been threatened with/having a property you own repossessed 0%
None of these 36% 18 § The State of Legal Services 2020 § Evidence Compendium
Small businesses
21. Data from the LSB’s Small Business Legal The most common issues relate to trading, Needs Survey suggests that one in three followed by tax and employee problems. (31%) small businesses faced a legal Small businesses were asked about more issue in the previous twelve months, the than 80 individual issues, which have been equivalent of 1.8 million businesses. grouped for analysis into nine categories.
Figure 3.3: Legal needs of small businesses12
Trading 20%
Tax 7%
Employees 7%
Regulation 6%
Business premises 5%
Intellectual property 3%
Structure 3%
Debt/Finance 2%
Other problems 2%
22. Like individuals, the data reveals demographic differences, with small businesses owned by BAME or disabled people being more likely to experience legal issues. BAME and disabled business owners had a significantly higher proportion of issues relating to employees, finance, regulation and structure compared to White and non-disabled owners. In addition, disabled owners experienced a higher proportion of issues relating to business premises.
23. The key findings of surveys and other materials relating to small businesses is brought together in a box on page 28, otherwise this section focuses on individual consumers. The State of Legal Services 2020 § Evidence Compendium § 19
Unmet need and barriers to access
Estimates of unmet legal need
24. Drawing on OECD guidance13, the 25. We estimate just under half (47%) of those Individual Legal Needs Survey estimates with a resolved contentious legal issue levels of legal need and how much is met did not have a legal need. This was either or unmet. It relies on several judgments because the issue was not particularly and assumptions and so it produces serious or the individual could resolve it estimates rather than measures. Slightly themselves. That leaves an estimated 53% different methodologies are used for who did have a legal need. Of these an contentious and non-contentious issues. estimated 22% had their need met. The As might be expected, unmet need is remaining 31% did not have their legal higher for contentious issues over more need met. This is because either they did transactional needs, so this is the focus of not get professional help, it took too long our analysis. to resolve their issue, or they would have liked more information or assistance14. This equates to an estimated average 3.6 million adults a year with an unmet legal need involving a dispute15.
Figure 3.4: Estimated met and unmet legal need: resolved contentious legal issue16
Had a legal need: 53%
Met legal need: 22% Unmet legal need: 31%
Did not get Issue took Help was not professional too long: adequate: help: 8% 8% 21%
Base: All who had a resolved contentious legal issue that started in 2012 or later (9,231). 20 § The State of Legal Services 2020 § Evidence Compendium
26. The estimated incidence of unmet need have an unmet legal need than those on varies across legal issues and population higher household incomes (34% £32,000 segments. This suggests areas where or less, 28% £33,000 to 59,000, 26% access to justice barriers are highest. £60,000 or more).
27. By issue type, unmet need was estimated 29. We analysed the data for any differences to be highest in three groupings: related to ethnicity. Black respondents employment, finance, welfare and had a significantly higher incidence of benefits; property, construction and contentious legal needs (72% compared planning; and family. Unmet legal need to 53% for the White respondents). There was estimated to be lowest for injury and were also higher levels of unmet legal consumer problems. need across all three BAME groupings, this being statistically significant for the Mixed 28. Younger respondents were more likely multiple ethnic and Asian groups (66% to have an unmet need (33% 18 to in both, compared to 58% for the White 29yrs) than older respondents (26% 65+). group). Similarly, those with a low education level were more likely to have an unmet legal 30. Respondents reporting a disability had need (34% low, 32% medium, 28% high). a higher incidence of legal needs (57% There was also a declining trend of unmet compared to 48%), but there were no legal need across income, with those on significant differences in levels of unmet lower household incomes more likely to need.
Figure 3.5: Estimated met and unmet legal need: resolved contentious legal issue, by issue type17
35% 37% 30% 37% 28% 28% 20%
21% 28% 27% 24% 21% 23% 23% 21%
7%
amily Employment Rights of Property Convenyancing Wills trusts Injury Consumer problem finance, individuals construction /residential and probate welfare and and planning benefits
Met legal need Unmet legal need
Base: All who had a resolved contentious legal issue that started in 2012 or later (9,231), rights of individuals (n=617), consumer problem (n=1,007), conveyancing/ residential (n=1,672), family (n=1,307), injury (n=1,129), property/ construction/ planning (n=1,899), employment/ finance/ welfare/ benefits (n=2,350), wills/ trust/ probate (n=2,337) The State of Legal Services 2020 § Evidence Compendium § 21
Figure 3.6: Unmet legal needs by ethnicity18
CONTENTIOUS LEGAL NEEDS WHITE MIXED BLACK ∆ ASIAN Had a legal need 53% 50% 72%* 58%
Unmet legal need 58% 66%** 62% 66%**
* Statistically significant; ** Close to being significant; ∆ small base size 22 § The State of Legal Services 2020 § Evidence Compendium
Legal capability
31. The Individual Legal Needs Survey includes 32. Between a fifth and a third of adults in three measures of legal capability: England and Wales have low levels of legal capability (Figure 3.7). § Legal self-efficacy - believing you can generally handle difficult situations in 33. There is a strong linkage between legal a legal context capability and unmet legal need. The lower § Legal confidence - confidence that the level of confidence, self-efficacy and you can personally achieve a fair and perceptions of accessibility, the higher the positive outcome in different legal level of unmet need (Figure 3.8). People scenarios with low capability are less likely to know § Perceived accessibility of justice - the their rights and responsibilities and find degree to which you perceive the it harder to go through the steps to deal justice system, excluding criminal with a legal issue. They are less likely to justice, is easily accessible get professional help, and where they do are less satisfied with the service they receive and are less likely to feel that the outcome was fair.
Figure 3.7: Levels of self-efficacy, legal confidence and perceived accessibility of justice within adults based in England and Wales 201919
Accessibilty of Justice 18% 59% 23%
Legal confidence 36% 53% 11%
Self-efficacy 37% 46% 17%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Low Medium High
Base: 28,663 The State of Legal Services 2020 § Evidence Compendium § 23
Figure 3.8: Percentage of unmet legal need for contentious legal issues by legal capability20
44%
38% 39%
31% 29% 28% 27% 23% 23% 24%
Low legal Medium legal High legal Low self- Medium self- High self- Low Medium High conficence confidence confidence efficacy efficacy efficacy accessibility accessibility accessibility of justice of justice of justice
Unmet need by legal capability Overall unmet need
34. People with low levels of legal capability were more likely to: § Be women § Be younger than 55 § Have a disability that limits daily life (either a bit or a lot) § Have lower household incomes (£32,000 or below)
35. Those with a disability were more likely to have low legal confidence (40% compared to 34% for people without), low perceptions of accessibility to justice (22% compared to 16%) and low legal self- efficacy (44% compared to 34%).
36. When taken as a whole, we did not find a link between having a BAME background and lower levels of legal capability. However, Asian respondents were more likely to have low legal self-efficacy (19% compared to 11% White respondents) and were slightly more likely to have lower legal confidence (40% compared to 36%). However, they had far higher perceptions of accessibility of justice (42% compared to 22%). 24 § The State of Legal Services 2020 § Evidence Compendium
Advice seeking
Obtaining help
37. Our analysis shows that people who get help than those not (54%). The context of help with their legal issue are more likely what the issue is and how it is perceived to feel the outcome was fair and better has a significant impact on whether than they had hoped for. Therefore, it is people will get professional help or not. instructive to consider the main barriers that people face obtaining help. 40. There is evidence of rational decision- making when deciding to get professional 38. When facing a legal issue, two thirds of advice with people more likely to seek consumers (66%) sought and received professional advice for very serious issues. help. This included 55% who received Even so, the data reveals access barriers professional help and 11% from friends and differences between population and family. 34% didn’t receive any help – groupings. The most common reasons 21% didn’t think or try to get help, while for individual consumers not seeking 13% tried but were unsuccessful. professional help (Figure 3.9) are evenly spread between: 39. There are some demographic differences § Thinking it would be too difficult, relating to obtaining professional help. practically, to deal with an advisor Younger respondents are more likely to obtain help overall, but less so for § Thinking there were not advisors who contentious issues. Black respondents could help with that sort of issue (64%) were significantly more likely to § Not knowing where or how to get obtain professional help than White advice respondents (55%), but Asian respondents § Assuming professional advice would (50%) were significantly less likely to do so. not make any difference Respondents reporting a disability (56%) § Assuming that it would be too were more likely to obtain professional expensive The State of Legal Services 2020 § Evidence Compendium § 25
Figure 3.9: Reasons for not trying to get help from a professional adviser for contentious or non- contentious legal issues, 201921 23% 23% 22% 21%
16%
13% 11%
8%
It would have I didn t think I ddn t know It would not Assumed it The issue was Issue resolved I didn t need been too there are where/how have made would have not important without the help/I knew difficult (eg. advisers that to get advice any difference been to enough need for advice enough myself time, distance etc.) could help expensive with this type of issue
Q. Why didn’t you try to get help from a professional adviser? Base: All who did not try to get help from a professional adviser (3,985)
41. Those who were younger, or on lower Those who tried but failed to get incomes, or having low legal confidence advice were more likely to say they did not know where to go to get help22. A fifth (20%) of 43. Focusing on the 13% who tried but were 18 to 29 year olds didn’t know where to unsuccessful in getting help also reveals go compared to 15% of 30 to 49 year olds key population differences consistent with and just 6% of those aged 65+. 15% of other areas of disadvantage. They were those with household incomes of £32,000 more likely to: or less didn’t know where to go compared § Have lower legal confidence (17% of to 10% of those with £60,000 or more. those with lower legal confidence Finally, 18% with low legal confidence did compared to 11% with high legal not know where to go compared to only confidence) 6% with high legal confidence23. § Perceive justice to be less accessible (18% who perceive justice to be highly 42. The differing methodologies between inaccessible compared to 11% who the 2019 and 2015 individual legal needs perceive it to be accessible) surveys prevent direct comparisons. However, there are similar reasons given § Be from a BAME group (18% BAME for not getting help, including people compared to 13% White British thinking they could handle the issue alone, background) not knowing there was help available or § Report a disability (16% compared to where to go, that legal advice would be 12%) 24 too expensive or not worth the hassle . § Have a lower income (15% with a household income below £32,000 compared to 10% with a household income of £60,000 or more) § Experience three groupings of issue: property, construction and planning (20%); employment, finance, welfare and benefits (19%); or rights of individuals (19%) 26 § The State of Legal Services 2020 § Evidence Compendium
Perceived accessibility of the justice system
44. The Individual Legal Needs Survey includes have tried but not got help (11%) than measures of the perceived accessibility those believing the justice system had low of the civil justice system. Nearly a fifth levels of accessibility (18%). This is despite (18%) of respondents perceived the justice (as noted above) those from the highly system as having low levels of accessibility, accessible group being a larger proportion just under a quarter (23%) perceived it to of those in England and Wales25. have high accessibility and the remaining 59% were in the middle. Those who 45. As the Figure 3.10 shows, most consumers’ experienced a legal issue were less likely general impression of the civil justice to think that the justice system is highly system is that it is expensive, and that accessible (18%) than those who had not poorer people are at a disadvantage. Only (26%). While these are only perceptions, 13% disagreed that for civil issues lawyers the survey found a link between getting are too expensive for most people to use. help and perceived accessibility of justice. 71% thought that taking a case to court is Those who thought the justice system generally more trouble than it is worth. was highly accessible were less likely to The State of Legal Services 2020 § Evidence Compendium § 27
Figure 3.10: Perceived inaccessibility of the justice system
The justice system provides good value for money 3% 22% 51% 25%
Rich people’s lawyers are no better than poor people’s lawyers 8% 22% 36% 34%
For issues like these, people like me can afford help from a lawyer 6% 27% 41% 26%
It is easy to take issues like these to court if needed 5% 32% 49% 14%
Issues like these are usually resolved promptly and efficiently 4% 33% 46% 16%
Taking a case to court is generally more trouble than it is worth 17% 53% 25% 4%
People with less money generally get a worse outcome 35% 47% 15% 4%
For issues like these, lawyers are too expensive for most people to use 43% 44% 10% 3%
For issues like these, law is like a game in which the skilful and 37% 51% 10% 3% resourceful are more likely to get what they want
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Strongly agree Mainly agree Mainly disagree Strongly disagree
Note some percentages do not sum to 100% due to rounding issues. Base: 9,275. Question: Now some questions about your general impression and experience of the justice system. We are not concerned with the ‘criminal’ justice system. We are concerned with the justice system that deals with issues such as being unreasonably sacked by your employer, injured as a result of someone else’s negligence, involved in a dispute over money as part of a divorce, or facing eviction from your home. Thinking about issues like this, to what extent do you agree or disagree with the following statements.
46. The World Justice Project Rule of Law 47. On this sub-factor, the UK ranks 79th Index is a quantitative assessment globally and 23rd of 24 countries in tool designed to offer a detailed and its peer group region (EU, EFTA and comprehensive picture of the extent to North America) and 33rd out of 34 in its which countries adhere to the rule of income peer group. Its score (0.52) is the law in practice26. The UK occupies 13th same as Belize and only slightly higher position out of 128 countries in the Index, than Afghanistan (0.49). The score is but the weakest area of performance is determined by responses to population the accessibility and affordability of the and expert surveys, so it is based on civil justice system. This is also the sub- perceptions rather than an objective factor where the UK has seen the heaviest assessment of relative levels of access fall in score over time. to justice. Even so, the Index indicates strength of feeling in this jurisdiction about these issues. 28 § The State of Legal Services 2020 § Evidence Compendium
Small businesses There are around 5.8 million small § Not obtaining professional advice – businesses – those employing up to 50 Half (50%) dealt with their legal problem people – making up 99% of all businesses. entirely on their own. 16% used family, At the start of 2019, their estimated business friends or colleagues, a tenth turnover was £2.2 trillion, representing (10%) did nothing. Just under a quarter around half of business turnover in the (24%) got professional legal advice, most UK private sector, and they employed often from accountants’ than a solicitors’ 16.6 million people (about 60% of all firm private sector jobs)27. Therefore, how § Certain types of businesses face small businesses deal with legal issues is higher barriers to accessing legal crucial to the UK’s economic prosperity. services – smaller businesses were Small businesses have been hit hard by significantly less likely to deal with their the pandemic, particularly those lacking legal issue, or seek help from other the means to ride out unexpected loss people or organisations, particularly of income. The Federation of Small those with an expected turnover of less Businesses reports that the health crisis than £50,000 per year and consisting of has exacerbated longstanding challenges one worker or sole partnerships in areas like late payments since small § – only 22% businesses depend on cashflow for Low shopping around shopped around, of whom half (50%) their survival28. While statistics are not found it easy to compare providers. available, there are likely to be spikes in Small businesses preferred sticking with other legal needs, such as employment, the familiar: 32% didn’t shop around commercial tenant evictions and contract because they were happy to go with disputes. The pandemic may entrench someone they knew and another 32% inequalities: as noted above, the LSB’s were happy to use the people they had research indicates that small businesses used before with BAME and disabled business owners are more likely to experience legal § Perceptions that legal services are problems. unaffordable – just under a quarter The LSB’s legal needs surveys with small (24%) agreed that when they needed businesses show that small businesses one, they found it easy to find a suitable face similar challenges to citizens legal services provider that they could in understanding their legal needs, afford. Only one in ten (11%) agreed that accessing legal services and getting lawyers provide a cost-effective means a good deal. In the 2017 wave of the to resolve legal issues. Again, there were research: significant differences by size with the smallest businesses most likely to agree § Low legal capability – only 1 in 20 (5%) with these statements of the businesses surveyed had either a qualified lawyer or someone trained in handling legal issues in house. 7% had ongoing contracts with an external organisation to provide legal services The State of Legal Services 2020 § Evidence Compendium § 29
Other research has highlighted Around half of small businesses reporting perceptions of cost as a barrier to access. a legal issue said the issue had a negative For example, a 2017 review of the UK impact. Total annual losses to small patent system found that UK companies businesses due to legal problems is appear to patent less than in comparator estimated at £40bn, and over 1 million countries. It highlighted that legal services individuals in small businesses suffer ill are seen as expensive compared to health arising from these legal problems. other jurisdictions, and the high cost Therefore, as with citizens, unresolved of legal advice is seen as a barrier for legal problems facing small businesses small firms29. Qualitative research for have knock on impacts for public services the CMA found that saving legal costs and wider economic productivity. was a motivation for not using legal Across the three waves of the LSB’s small service providers and highlighted barriers business legal needs survey, the metrics 30 to searching and comparing prices . listed above have either stayed the same Research by Nesta Challenges revealed or worsened, although there is evidence that 43% of small businesses and the self- that wider government better regulation employed think the legal system is set reforms have increased confidence up only to suit big businesses and those that law and regulation provide a fair with the resources to pay for it. 45% said trading environment. Despite this they were very willing to embrace digital disappointing picture, there have been 31 services to help with legal problems . a series of developments that should Small businesses access advice from a improve access to legal services for small diverse range of sources. While it varies businesses. These include the creation by type of issue, they are more likely to of the Small Business Commissioner to obtain advice from accountants (26%) tackle late payment and unfavourable than solicitors (20%). This suggests the payment practices in the private sector. value of accountancy regulators being Over recent years we have seen the part of the Legal Services Act framework, growth of providers using technology although the ambitions of these bodies to provide free or cheap access to legal has been constrained. ICAEW is currently documents, subscription and other limited to regulating probate and the business models designed to make legal administration of oaths32 while ACCA has advice more affordable, and comparison decided to exit the market. websites aimed at small businesses. 30 § The State of Legal Services 2020 § Evidence Compendium
Paying for legal services
Funding method 50. Most people who paid for legal advice funded this from savings (51%) and 48. About one third (35%) of people who got roughly another third (36%) from their help from an adviser paid for part or all regular income or salary. It is much these services, 57% did not pay and 8% less common for people to borrow were unsure. This varies significantly money, whether through friends or depending on the type of legal issue. family (6%), through their property (3%) More than half with a need relating to or by taking out a loan (3%). However, conveyancing (66%) or wills, trust and there are significant variations across probate (56%) paid for the services demographic groups. As might be themselves, while in contrast this was the expected, older respondents are more case for only small minorities of those with likely to access savings, as do those on consumer problems (7%), injury (9%), or lower household incomes (whereas higher employment, finance, welfare and benefits earning households are more likely to (9%). draw on regular sources of income). The variation between ethnic groups is striking, 49. The likelihood of paying varies based on underlining the wider socio-economic the type of adviser, with around 7 in 10 disadvantages these groups face. Although of those using regulated lawyers paying sample sizes are small, while 10% of White themselves. By contrast, only around 1 respondents borrowed, three in ten of the in 10 receiving advice from trade unions, mixed multiple ethnic group respondents membership bodies and the not-for-profit (30%), a third of Asian respondents (33%) sector paid themselves. The practice of and 4 in 10 of the Black respondents (42%) some charities charging for legal advice is did so. a relatively recent development.
Figure 3.11: Whether paid for services of a main advisor for contentious or non-contentious legal issues
Employment, finance, 66% 20% 6% 9% welfare and benefits
Injury 66% 19% 7% 8%
Consumer problem 63% 25% 6% 6%
Wills, trusts and probate 49% 40% 6% 5%
Conveyancing/residential 40% 46% 7% 7%
Total 57% 30% 5% 8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
No Yes - paid for all of it Yes - paid for part of it Don t know
Note some percentages do not sum to 100% due to rounding issues. The State of Legal Services 2020 § Evidence Compendium § 31
51. These figures should be seen in the predict the time and costs involved in context of the health of the population’s advance. In the LSCP Tracker Survey 2020, finances, which are under increased the most common areas were wills (71%), pressure during and following the conveyancing (64%) and immigration Covid-19 pandemic. Prior to the pandemic, (52%). Hourly rates were most common the Financial Conduct Authority (FCA) in family (37%), employment (17%) and estimated33 in relation to the UK adult probate (15%). Free services were most population that: common in areas where alternative funding arrangements are in place, such § 50% show characteristics of potential no win no fee in injury (39%), or social vulnerability34 welfare areas of law where free sources of § 15% are over-indebted advice are available. § 7% say their household could continue to cover living expenses for under a 56. A historical analysis shows growth of fixed week if they lost their main source fees in some more complex or bespoke of income, without having to borrow areas of law where the provider takes money or to ask for help from friends greater risk. For example, in 2012 only or family 12% of consumers paid fixed fees for § 13% have no cash savings; a further family work compared to 30% in 2020. 32% have savings less than £2,000 This was triggered in part by the entry of Co-operative Legal Services which offered § 8% have £10,000 or more in unsecured fixed fee deals. debt
52. These figures point to the importance of legal services that are either free or subsidised at the point of delivery, as well as flexible payment options (e.g. instalments, credit).
Charging methods
53. A key trend over the last decade has been the growth of fixed fees, which can help widen access by offering consumers greater certainty about their likely costs. The LSB’s Prices Research found that fixed fees were 35% cheaper than estimates35.
54. Historical data from the LSCP annual tracker survey suggests that fixed fees were charged in less than one in four (38%) transactions in 2012, but in over half (52%) in 2020. Use of the hourly rate has fallen from a peak of 14% in 2013 to 7% in 2020. However, the proportion of legal transactions where no fee was paid has halved between 2012 and 2020, from 24% to 12%.
55. Fixed fees are more common in areas of law where the provider can more safely 32 § The State of Legal Services 2020 § Evidence Compendium
Figure 3.12: Charging methods
60%
50%
40%
30%
20%
10%
0% 2012 2013 2014 2015 2016 2017 2018 2019 2020
ixed ee Hourly rate ree
Insurance Unbundled services
57. The FCA estimates that 17% of UK adults, 58. Unbundled services – where consumers or 8.6 million, have legal expenses/ carry out some of the tasks – offer protection insurance. In the LSB’s another route for lowering the cost of Individual Legal Needs Survey, 7% of legal services, where appropriate. In LSB’s people who did not pay for the services Prices Research, one-fifth of providers provided by their main adviser used in conveyancing (21%), nearly four in insurance. Often, legal expenses insurance ten in wills, trust and probate (38%) and will be provided as part of motor and six in ten in divorce (58%) and said they household insurance, or packaged include information about unbundling to within a bank account, and people may clients before they sign up to a service. be unaware of this. A report by the In the LSCP Tracker Survey 2020, 16% International Bar Association identified of consumers entered in unbundling three high-level key barriers to address arrangements with this being more before use of legal expenses insurance common for younger age groups and could become more widespread: lack of significantly higher for BAME respondents awareness and information available to (22%). Unbundling was most common in consumers; gaps in indemnity (common immigration (47%), benefits and tax credits legal issues like family and crime tend (40%), probate (33%), housing (30%), to be excluded); and the perception of employment (30%) and family (27%). It was conflicting interests36. relatively infrequent used in conveyancing (7%). The State of Legal Services 2020 § Evidence Compendium § 33
Public funding and health of the third sector
59. Legal aid is a critical safety net ensuring From 2015/16 to 2019/20, there was a the most vulnerable can access legal 6% increase in total legal aid expenditure, advice and legal representation to ensure comprising a 21% increase in civil legal access to justice. LASPO, along with its aid expenditure, a 3% increase in central secondary legislation, reformed the scope funds and a further 4% decrease in of, eligibility for, and fees paid under, legal criminal legal aid expenditure. aid. 61. While LASPO reduced the cost of legal aid 60. The LASPO reforms implemented in 2013 to taxpayers (total spending on legal aid followed a ‘long period of expansion of reduced from £2.55 billion in 2010/2011 legal aid’ and were introduced ‘in the to £1.62 billion in 2017/2018) this has context of the economic downturn and had significant impacts on consumers, consequently constrained budgets across legal professionals and the third sector. Departments’37. Figure 3.13 shows how Evidence on the impacts of the LASPO total expenditure on legal aid decreased reforms is mixed, with the Ministry by 39% in real terms between 2010/11 of Justice highlighting a shortage of and 2015/16, with criminal legal aid information on people trying to resolve expenditure decreasing by 32% and civil legal problems without legal aid38. legal aid expenditure decreasing by 46%.
Figure 3.13: Expenditure on Legal aid 2009-10 to 2019-20 (£m real terms 2019 prices)39
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020
Central Funds 105 91 116 110 90 68 53 48 51 48 55 Civil legal aid 1,143 1,202 1,109 1,068 915 746 650 684 706 745 786 Criminal legal aid 1,310 1,378 1,281 1,125 1,072 968 932 915 928 985 897
Criminal legal aid Civil legal aid Central unds 34 § The State of Legal Services 2020 § Evidence Compendium
62. Alongside its Post-Implementation Review 65. Covid-19 is contributing to an increase in of LASPO, the Ministry of Justice published demand in areas where legal aid eligibility a vision for the future of legal support and has been removed (such as employment action plan. This had three overarching and housing benefits)43 . It is also likely to themes: entitlement to legal aid for the increase numbers of people who cannot most vulnerable; ensuring people can afford legal services, but do not meet access the right legal support at the the legal aid eligibility criteria. The Law right time; and ensuring the government Centres Network refers to this group as puts in place better systems, processes the ‘squeezed middle’ who have fallen into and decisions. While acknowledging the a ‘Justice Gap’. On its estimates, millions of important role of professional legal advice people in the UK, including 56% of earners and representation, the vision marks a and 76% of working single parents, are shift in focus to other ways of supporting caught in the Justice Gap44. people at early stages and an active public policy to promote a ‘channel shift’ 66. The legal aid cuts have corresponded with for signposting from current face-to-face an increase in unrepresented parties, or methods to online. The vision also focuses litigants in person (LiPs) in certain case on the role of government in fostering a types. Figure 3.14 shows increases in culture of innovation. the percentages of LiPs for all areas of law we have data for, except for public 63. Below we consider impacts on consumers law applicants and divorce applicants. and the third sector. Further discussion The figures suggest there was a high on the impact on legal professionals is in proportion of LiPs prior to LASPO and section 7 of this report. this has increased. The biggest increase has been in private law cases, doubling Impact of LASPO reforms – on for applicants between 2013 and 2020. consumers Covid-19 will likely result in an increase in LiPs at a time when backlogs in court 64. LASPO has been described as harming cases have risen steeply. access to justice for some litigants40 and affecting the ability of consumers to resolve their legal issues41. In the civil and family jurisdictions, changes to the scope and eligibility requirements mean legal aid is available to fewer people. In the Individual Legal Needs Survey, 4% of people who did not pay for all the services from their main adviser received legal aid. In the LSCP Tracker Survey 2020, 3% of consumers received legal aid funding compared to 5% in 2012 and 8% in 201442. The State of Legal Services 2020 § Evidence Compendium § 35
Figure 3.14: Unrepresented parties in cases as a percentage of all claimants/applicants, or all defendants, or both Q1 2013 to Q1 202045
100%
90%
80%
70%
60%
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40%
30%
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0%
Q 1Q4Q3Q2Q1 Q4Q3 Q2Q1Q4Q3Q2Q1Q4Q3 Q2 Q1Q4Q3 Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1 Q1Q4Q3 Q2 Q2Q1Q4Q3Q2Q1Q4Q3 Q4Q3 Q1Q4Q3Q2Q1 2013 2014 2015 2016 2017 2018 2019 2020
Adoption (Applicant or defendant or both Divorce (inc. financial remedy) (applicant) Divorce (inc. financial remedy) (defendant) Civil cases (excl family) (claimant, defendant or both)
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Q 1Q4Q3Q2Q1 Q4Q3 Q2Q1Q4Q3Q2Q1Q4Q3 Q2 Q1Q4Q3 Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1 Q1Q4Q3 Q2 Q2Q1Q4Q3Q2Q1Q4Q3 Q4Q3 Q1Q4Q3Q2Q1 2013 2014 2015 2016 2017 2018 2019 2020
Domestic Violence (defendant Domestic Violence (applicant
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Q 1Q4Q3Q2Q1 Q4Q3 Q2Q1Q4Q3Q2Q1Q4Q3 Q2 Q1Q4Q3 Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1 Q1Q4Q3 Q2 Q2Q1Q4Q3Q2Q1Q4Q3 Q4Q3 Q1Q4Q3Q2Q1 2013 2014 2015 2016 2017 2018 2019 2020
Public law (defendant Private law (defendant Public law (applicant Private law (applicant 36 § The State of Legal Services 2020 § Evidence Compendium
67. The figures are consistent with criticism 69. There has been widespread criticism that of LASPO that the reforms resulted in an the LASPO reforms have resulted in many increase in LiPs in family law cases46, and solicitors being forced to abandon legal that many who are unrepresented do not aid work resulting in ‘advice deserts’ for qualify for legal aid but cannot afford legal certain categories of law. For example, the representation47. LiPs can face challenges Law Society has estimated that over half in adequately representing themselves the population of England and Wales is and achieving equality of arms to those living in a local authority that has one or who are represented. In a report, the no housing legal aid provider52. There has EHRC noted that in many family law cases, been a clear decrease in the numbers of one party is compelled to pursue litigation legal aid providers across crime and civil by the other party initiating action. Such since the implementation of LASPO. For unwilling unrepresented litigants are less crime, there has been a decrease of 20%, likely to understand the case and to be and in civil there has been a decrease of able to articulate their position and are 31% (Figure 3.15). Technology is a more more likely to lack confidence48. These suitable substitute for face-to-face advice risks are further compounded for LiPs in some areas of law more than others, with certain protected characteristics, such but the global need for sufficient qualified as those with mental health conditions advisors remains. and learning disabilities, and those who face language barriers49. 70. In its Post Implementation Review of LASPO, the MoJ notes that following 68. The ability for people to self-represent and the 2018 Legal Aid Agency (LAA) legal the enhancement of support for LiPs is aid provider contracting round, ‘there a feature of the Ministry of Justice Legal is effective coverage across England Support Action Plan with an emphasis on and Wales, with the exception of four the need to improve the understanding of housing procurement areas and one the experience of LiPs in the court system immigration and asylum areas’ with and how new technologies can better these areas described as ‘historically enable pro bono support to LiPs50. While difficult’ to find provision53 in . As such, additional support for LiPs is a welcome the Ministry of Justice’s review does not commitment, it risks further burdening attribute lack of coverage to LASPO, but a pro bono sector that has long been instead wider factors. More recently, the dealing with increased demand from LiPs LAA has escalated to live risk status the for support due to the LASPO reforms issue of ‘gaps in the provision of legal aid during a period when it has received due to insufficient provider volumes’ and decreased funding51. acknowledged the potential for Covid-19 to impact further, both in terms of provider availability and client need54. The State of Legal Services 2020 § Evidence Compendium § 37
Figure 3.15: Numbers of legal aid provider offices 2011-12 to 2019-2055
7,357 7,200 7,007 6,707 6,590 6,365 6,432 6,156 5,788
4,257 4,178 4,282 3,783 3,360 2,985 2,818 2,948 2,901
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020
All crime areas All civil areas
Impact of LASPO reforms – on the third sector
71. LASPO reduced legal aid income for many 2017-18, the total value of work (£s) for charities owing to a large proportion NfP providers was 50% less than in 2012- of charities’ advice work (for example, 13, compared to a 20% reduction in the welfare benefits) being put out of scope56. value of work for private providers57. The There has been a 63% decrease in the Law Centres Network notes that legal aid numbers of Not-for-Profit (NfP) legal aid income has dropped by 60%58. Reductions organisations across all civil areas from in other funding sources, such as local 2013/14 to 2019/20. The number of NfP authority funding, has also impacted organisations dropping out of the sector on the ability of NfP providers to meet is higher than the number of private firms citizens’ needs59. dropping out. LAA data shows that in
Figure 3.16: Number of legal aid not-for-profit-organisation offices for civil law*60
511 512
442
308
238 212 210 199 192
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
*Legal help, excluding mediation and housing possession civil representation 38 § The State of Legal Services 2020 § Evidence Compendium
72. In addition to reducing funding, LASPO is also seen as contributing to an increased demand for advice from the NfP sector that cannot always be met61. In its submission to the Ministry of Justice as part of the Post-Implementation Review Consultation for LASPO, the Law Centres Network notes that its largest law centre could accept just one in four cases referred to it in 201762.
73. In response to increased demand on the third sector due to Covid-19, in May 2020 the Ministry of Justice announced £5.4 million for legal advice to replace legal aid income lost due to Covid-19-related restrictions, including £3m for local law centres. Law centres have also received a welcome cash injection from private sources contributing to a Justice Fund.
74. There are concerns about the displacement of costs, and additional costs, to other public services, including local authorities, the Home Office63 and the NHS64. The Post Implementation Review notes a lack of evidence to quantify any displacement of costs,65 but recognises a need for more evidence on the value of co-locating support services66. This is also a focus of the Legal Support Action Plan67. The State of Legal Services 2020 § Evidence Compendium § 39 4. COMPETITION WORKING FOR CONSUMERS The State of Legal Services 2020 § Evidence Compendium § 41
Summary
Impact of price transparency Comparison tools measures § Comparison tools remain little used § Regulatory requirements on providers by consumers despite examples of to increase transparency of price appear significant investment behind new to be having limited impact so far. There entrants is no clear pattern of price dispersion § While the transparency reforms should narrowing, most prices are going up create better conditions for these tools and evidence of firms increasing prices to succeed, inherent features of the because competitors are doing so. market may make this challenging Better information for consumers on the quality of providers may help stimulate Innovation and technology greater price competition § Despite a wave of market liberalisation § Significant pockets of non-compliance and deregulation levels of innovation by solicitors and barristers with the rules in the market overall have remained § A steady but slow increase in shopping unchanged around over the last decade, but this has § Take up of lawtech has been modest, not accelerated since the transparency but Covid-19 is forcing change reforms were introducedSome evidence that comparing prices is becoming § Some types of businesses are easier where this information is more innovative, while providers available, but scope to make information are increasingly reporting a more more consistent and comparable competitive environment as a factor driving innovation and perceptions of § More positively, price transparency regulation as a barrier to innovation has increased in areas of law that have reduced were not subject to the new regulatory requirements Unregulated providers
Comparing quality § Overall, unregulated providers have made modest inroads, although they § Consumers still lack access to reliable have higher market share in family, will- indicators of service quality because writing and some areas of business law regulatory bodies have not pursued workable solutions with sufficient pace § Evidence that unregulated providers are more innovative and cheaper, but § Consumers continue to find it more also have lower levels of consumer difficult to compare quality than price, satisfaction although this has improved in some of the legal services purchased most often § Commentators highlight that developments in technology may help unregulated providers to grow, but lack of protections make consumers wary of using them 42 § The State of Legal Services 2020 § Evidence Compendium
Shopping around on price and quality
75. In 2016 the CMA published the findings requirements on price transparency of a year-long market study concluding affecting significant parts of the market that competition in the legal services came into force from December 2018. It sector for individual consumers and should be possible to see the early impact small businesses was not working well. of these measures, although the changes The CMA’s main concern was that a lack are still bedding in and their full impact of information weakens the ability of may not yet have materialised. consumers to drive competition through making informed purchasing decisions. 77. The analysis draws on three sources: the It recommended the regulatory bodies Individual Legal Needs Survey predates develop action plans designed to help the new regulatory requirements coming consumers by increasing transparency in into effect; the fieldwork for the LSCP the market, focusing on four areas: Tracker Survey 2020 took place one year after these changes (although based on § Action to deliver a step change in purchases in the previous two years); and standards of transparency to help the LSB’s Prices Research a year after the consumers (i) to understand the price requirements came into force. and service they will receive, what redress is available and the regulatory Shopping around status of their provider and (ii) to compare providers 78. In the LSCP Tracker Survey 2020, nearly § Promotion of the use of independent two-thirds of consumers (64%) first feedback platforms to help consumers found out what the price of the service to understand the quality of service would be by having a discussion with the offered by competing providers provider, while 12% found this either in an advertisement, the provider’s website § Facilitation of the development of or a comparison website. Nearly 8 in 10 a dynamic intermediary market (78%) found this price information easy through making data more accessible to understand, although there were large to comparison tools and other differences between White (80%) and intermediaries BAME (68%) respondents. § Making better information available to assist consumers when they are 79. The LSCP Tracker Survey 2020 also found identifying their legal needs and the that 30% of consumers shopped around types of legal services providers (both to compare prices and/or services before regulated and unregulated) who can selecting their legal services provider. help them Since 2011, shopping around has steadily increased from a low base of 19% (Figure 76. The regulatory bodies have since 4.1) but remains quite low68. This varies by introduced remedies in each of these area of law being highest in immigration areas. While the approach and timetable (41%) and conveyancing (38%). vary across regulatory bodies, new The State of Legal Services 2020 § Evidence Compendium § 43
80. In the 2019 Individual Legal Needs Survey, § Being happy with the first provider 21% of people who successfully got they looked at, or assuming that all professional help from a main advisor providers are the same 69 shopped around . This rose to 34% of § Assuming that as the matter is simple/ those people who paid for some or all the routine there is no point shopping services they received. More widely, 37% around of people searched for or obtained details § Preferring a recommendation or using of services they could use, searched the same provider used previously reviews, used price comparison sites, § Having a matter that was urgent or asked for suggestions or searched specific assuming that shopping around would services when choosing their main adviser. take too long, or would be too difficult 81. In the Individual Legal Needs Survey, § The choice was made by a professional reasons given for not shopping around intermediary, for example as part of vary but centre around: an insurance claim
Figure 4.1: Percentage of consumers who shopped around over time 30% 28% 27% 27% 25% 25% 24% 22% 22%
19%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Q: Did you shop around for the provider you chose? (By shopping around we mean comparing services or prices from a number of different providers before selecting the provider you used.) 2020 base: 3,623. 2019 base: 3,583. 2018 base: 3,535. 2017 base: 1,625. 2016 base: 1,523. 2015 base: 1,067. 2014 base: 1,060. 2013 base: 1,480. 2012 base: 1,435. 2011 base: 1,114. 44 § The State of Legal Services 2020 § Evidence Compendium
Figure 4.2: Reasons given for not comparing across more than one service provider when choosing a main adviser70
I was happy with the first one I looked at 44%
I trusted the recommendation I was given 32%
My matter was routine/simple 28%
I had previous experience of using them 23%
They (providers) are all much the 9% same/equally competent
Thought it would be too time-consuming to do 6%
My matter was urgent 5%
Other 4%
Choice made by professional intermediary 3% making referral (insurance company etc.)
Thought it would be too difficult to do 2%
Base: all adults who didn’t compare across more than one service provider when choosing their main adviser to help handle a contentious legal issue (n=848)
82. Survey data shows a similar pattern of 83. The percentage of consumers shopping younger consumers being more likely to around varies by area of law. In the shop around than older consumers. For LSCP Tracker Survey 2020 this varies example, in the Individual Legal Needs from highs of 41% in immigration and Survey 65% of 18 to 29 year olds shopped 38% in conveyancing, to 18% in probate. around compared to only 47% of those In some areas of law shopping around aged 65 or older71. This may reflect some may be limited by factors that make generational differences, but also that this unnecessary or less essential (e.g. younger consumers are less able to draw professional executors for probate work on personal recommendation or previous appointed in wills, mortgage providers experience – two key factors influencing paying for conveyancing legal fees). Since choice of provider. In the LSCP Tracker the LSCP Tracker Survey 2020 there has Survey 2020, shopping around was been a big increase in shopping around significantly higher for BAME (40%) than for employment disputes and modest White (28%) respondents. increases for will-writing and family matters, but no change in conveyancing. The State of Legal Services 2020 § Evidence Compendium § 45
Figure 4.3: Percentage who shopped around for legal service provider by area of law72
Total 30%
Convayancing 38%
Employment disputes 35%
Will writing 32%
Problems with consumer services or goods 30%
Family matters 29%
Housing, landlord or tenant problems 26%
Accident or injury claims 25%
Power of attorney 22%
Probate 18%
Q70: Did you shop around for the provider you chose? (By shopping around we mean comparing services or prices from a number of different providers before selecting the provider you used.) Total base: 3623. Conveyancing base: 1,027. Employment disputes base: 118. Will writing base: 947. Problems with consumer goods or services base: 76. Family matters base: 142. Housing, landlord or tenant problems base: 86. Accident or injury claims base: 99. Power of attorney base: 425. Probate base: 302.
Ease of shopping around Price transparency
74 84. In the LSCP Tracker Survey 2020, 56% 86. The LSB’s Prices Research shows far found it easy to make comparisons greater price transparency than prior to between providers, while 14% found the CMA’s report (Figure 4.4). Of course, it difficult. This is a slight improvement where the regulators have introduced from 2012 when 20% found it difficult, mandatory requirements this is to be but the percentage finding it easy has not expected – although there appears to be changed. There was less variation in ease significant minority of providers who are of shopping around by area of law than for not displaying their prices. Web sweeps levels of shopping around. by the SRA in 2019 found that 25% of the providers they checked were fully 85. Shopping around starts with consumers compliant, 58% were partially compliant, finding information about specific leaving 17% who were not complying at aspects of the service from providers. all75. There was more compliance with Consumers find it easier to find some price transparency than other aspects things rather than others. 72% easily of the rules, although it varied by area found how quickly the service could be of law. Compliance checks by the BSB started and 68% easily found information on direct access barristers found that on provider expertise. 69% easily found 37% were compliant and a further 38% cost information, although 16% found this were partially compliant, a quarter (25%) difficult. 54% easily found information on were non-compliant. The BSB found the quality of services although 17% found most common failings were in providing this difficult. While 55% easily found how indicative fees and when they might vary, long it would take, 21% found making this additional costs such as court fees, and comparison difficult73. an indicative timescale. The proportion of chambers that gave ‘no information’ on 46 § The State of Legal Services 2020 § Evidence Compendium
how fees were calculated was just over 88. As we seen above, in the LSCP Tracker 21%, compared to 56% the previous year Survey 2020, most respondents found and three quarters in 201776. it easy to get cost information (69%). However, fewer found it easy to get that 87. A positive development is much information in a way that they could higher transparency in areas, such as easily make price comparisons (59%). The family, where the price transparency proportions who found it difficult are requirements do not apply. This may similar. The respective figures for the 2019 suggest providers offering a range of survey are 68% and 39%. services have experienced benefits from price transparency or are providing 89. This big improvement on price information in response to consumer comparisons suggests that comparing expectations. The Individual Legal prices is becoming easier where this Needs Survey found a link between information is available, but there is price transparency and satisfaction that scope to make this information available suggests benefits to firms that embrace in a more consistent or comparable way. transparent practices: consumers who Nearly half (47%) of those who found were told about prices during initial it difficult to find the cost said it was communication were more likely to be because no upfront information on prices satisfied (94%) than those who were not was provided and a third (33%) found (82%)77. the prices they were presented with confusing78.
Figure 4.4: Percentage of providers displaying their prices on their websites 2017 and 2020
73% 9% 6% 7% 5% Conveyancing 2020
11% 9% 74% 5% 1% Conveyancing 2017
52% 15% 20% 5% 8% Divorce 2020
22% 15% 58% 3% 3% Divorce 2017
59% 10% 18% 7% 4% Wills, trusts & probate 2020
21% 11% 59% 6% 3% Wills, trusts and probate 2017
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Yes No - but planning to No - and not planning to Do not have a website Don’t know
Note some percentages do not sum to 100% due to rounding issues. Conveyancing 2017 base:498, Conveyancing 2020 base: 500, Divorce 2017 base: 495, Divorce 2020 base: 500, Wills, trusts and probate 2017 base: 499 Wills, trusts and probate 2020 base: 500. Note some percentages do not sum to 100% due to rounding issues. The State of Legal Services 2020 § Evidence Compendium § 47
Quality
90. The LSCP Tracker Survey 2020 suggests that consumers continue to find it more difficult to compare the quality of providers than price, with only 54% finding this easy (53% in the 2019 wave). More positively there have been significant improvements since the 2019 wave in family (61% vs 44%) and more modest gains in key areas including conveyancing, wills and probate.
91. We see considerable force in the LSCP’s argument that price transparency and quality indicators go hand in hand, and that quality indicators are essential for making price transparency meaningful79. The LSB’s Prices Research suggests a correlation between service quality and price. Providers taking an entirely bespoke approach or competing entirely on service are on average 18% more expensive than those taking an entirely standardised approach or competing primarily on price80. However, these differences are not clearly communicated to consumers. There are quality marks for some areas of law, but our Prices Research shows there is no statistical link between holding a quality mark and price.
92. The role of regulation is to ensure a minimum floor of standards with providers competing above this level. However, it is difficult for consumers to discern these differences in service provision due to the absence of reliable quality indicators. LSB has previously noted that the regulatory bodies have made less progress in relation to quality indicators81 than other areas of the CMA’s remedies. In April 2020, the LSB agreed to develop a statutory policy statement aiming to achieve a step-change in making the market work well for consumers by better connecting consumers to providers at the point of need82. 48 § The State of Legal Services 2020 § Evidence Compendium
Comparison tools
93. Digital comparison tools (DCT) such as § Providers perceive little need to comparison websites remain largely use DCTs to maintain or grow their undeveloped in legal services. This is customer base despite new ventures attracting significant § Lack of standardisation of services and financial investment and regulators fees/charging structures making it easier for these businesses § Low price transparency to obtain basic details about law firms. § The role of intermediaries such as However, some of the major customer estate agents as a source of referrals review websites operating across the economy cover legal services, including § A historical cultural aversion to Trustpilot.com. MoneySuperMarket.com marketing among providers is the only one of the UK’s large cross- § Low technological sophistication of economy price comparison websites to many providers’ websites operate in the legal services sector (in 97. The CMA’s remedies should help to conveyancing only). address barriers relating to price 94. The Individual Legal Needs Survey transparency, making it easier for found that 3% of consumers use a price comparison websites to thrive. However, comparison website when choosing their some factors are inherent features of the main adviser. There was slightly higher market, while others rely on consumers usage in the segments of personal injury, to exert their buying power more conveyancing and rights of individuals. strongly. Therefore, additional steps The LSCP’s Tracker Survey 2020 found may be necessary to facilitate a dynamic 2% of users choose their provider via a intermediary market. customer review or price comparison website.
95. The LSB’s technology and innovation survey found that 12% of providers used DCTs, and a further 3% were planning to do so83. There was considerable variation across different provider types with solicitors, larger providers, recent entrants and ABS being larger users. Analysis by market segment suggests that at least one in five providers use, or planned to use, DCTs in the immigration, family, employment and crime sectors.
96. A range of factors may explain why DCTs have yet to take off in legal services: § The one-off, infrequent nature of most consumer legal services § A relatively small critical mass of users The State of Legal Services 2020 § Evidence Compendium § 49
Price competition
98. New regulatory requirements on price transparency in certain parts of the Conveyancing market, including conveyancing and 1. Sale of a freehold property estate administration, came into force in January 2019. This was in response to 2. Sale of a leasehold property recommendations by the CMA after their 3. Purchase of a freehold property 2016 market review. 4. Purchase of a leasehold property 5. Sale and purchase of freehold 99. A full assessment of the impact of these properties changes requires the triangulation of a range of data sources. However, the third Divorce wave of our prices survey, conducted in early 2020, suggests that the reforms 1. An uncontested divorce requiring a appear to be having limited impact on full legal service competition so far. Even so, the reforms 2. An uncontested divorce responding remain relatively recent and it may be to a petition for divorce too early for them to have influenced 3. An uncontested divorce requiring consumer behaviour in the market. arrangements for dependent children 100. The research involved collecting prices 4. A more complex divorce requiring from legal services providers for three sets mediation and advisory services (‘blocks’) of tightly defined scenarios (see the box on the right). 5. A more complex divorce involving disagreement over assets
Wills, Trusts and Probate 1. An individual standard will 2. An individual complex will 3. Lasting power of attorney 4. Assistance for obtaining Grant of Probate 5. Estate administration 50 § The State of Legal Services 2020 § Evidence Compendium
Price spreads
101. The research found a wide dispersion of 102. One potentially positive sign of the impact prices, indicated by the interquartile range of price transparency is that the spread (IQR) – which measures the middle band of prices was slightly narrower among of prices. A range of prices is expected providers who display their prices online when differing service quality is available for most scenarios. but over time, we would expect to see a narrowing of price change for similar scenarios, which is not evident in this study. We found no consistent pattern on the spread of prices, as was also the case in the 2017 or 2015 waves of this research. We also found no clear trend between 2017 and 2020, with some spreads barely changing but others increasing or decreasing.
Figure 4.5: Price spreads (Inter Quartile Ranges) 2020 and 201784
Conveyancing
£500 £532
£325 £262 £275 £266 £300 £266 £273 £205
1. Sale of a 2. Sale of a 3. Purchase of a 4. Purchase of a 5. Sale and purchase of freehold property leasehold property freehold property leasehold property freehold properties
2020 2017
Divorce
£2,027 £1,950 £1,859
£1,330
£790
£639
£338 £319 £266 £201
1. An uncontested 2. An uncontested 3. An uncontested 4. A more complex 5. A more complex divorce requiring divorce responding to divorce requiring divorce requiring divorce involving a full legal service a petition for divorce arrangements for mediation and disagreement dependent children advisory services over assets
2020 2017 The State of Legal Services 2020 § Evidence Compendium § 51
Wills trusts and probate £1,775
£1,598
£660 £535
£198 £133 £163 £114 £85 £120
1. An individual 2. An individual 3. Lasting power 4 .Assistance for 5. Estate standard will complex will of attorney obtaining administration Grant of Probate
2020 2017
Changes in price
103. Prices have increased more than often by conveyancing providers. As decreased since 2017. Many factors drive expected, cost of getting work and changes in price, making it difficult to increases in costs were the other assess the impact of the new transparency common factors. A positive finding requirements (indeed, it is possible prices was that only a handful of providers may have gone up further without them). cited regulation as a reason explaining In summary: their decision to increase prices. § Average inflation-adjusted mean prices § Providers publishing prices online increased in eight scenarios and did were no cheaper than those who did 85 not significantly change in the other not . seven, while average median prices increased in 12 scenarios, decreased in two and did not change significantly in the one other scenario § Providers were much more likely to have increased their prices than decreased them in the 12 months before the survey. 36% in conveyancing had increased and 4% decreased them, 30% in the divorce scenarios had increased and 1% decreased them; and 33% had increased prices in the wills, trusts and probate scenarios while 3% had decreased them § In some scenarios, there was evidence of providers increasing their prices in response to their competitors doing so. This was the reason given most 52 § The State of Legal Services 2020 § Evidence Compendium
Figure 4.6: Changes in price
Conveyancing
Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Mean – á(+7%) á(+19%) á(+20%) á(+15%)
Median á(+7%) á(+7%) á(+7%) á(+7%) á(+7%)
In the last 12 months: 36% incr price 4% decr price
Divorce
Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Mean – – á(+7%) – á(+41%)
Median – á(+4%) á(+18%) â(-6%) á(+57%)
In the last 12 months: 30% incr price 1% decr price
Wills, trusts and probate
Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Mean – – – á(+36%) á(+26%)
Median á(+9%) á(+15%) â(-6%) á(+8%) á(+25%)
In the last 12 months: 33% incr price 3% decr price
Factors influencing price
104. We applied a statistical regression across more consumers will be willing to access all the scenarios, to see more widely legal services in parts of the country which characteristics are associated with outside of where they live. higher or lower prices. It also shows how much variation in prices is accounted 106. Providers offering fixed-fee prices were for by individual characteristics. Overall, on average 35% cheaper than those using the model explains around 25% of the estimates. We also found that providers variation in prices. This means that three using estimates were more likely to have quarters of the variation in prices remains cases costing the customer more than unexplained and may be down to other originally anticipated. factors not identified. 107. While we found no overall link between 105. The region where the provider is located provider size and price, one-person accounts for much of the variation in providers were on average 33% cheaper prices. Firms based in the North of than larger providers. England were 20% cheaper than firms based elsewhere, and firms in Wales were 17% cheaper. We did not find any significant price differences between firms delivering services remotely rather than face to face, but it is possible that Covid-19 and developments in technology will mean The State of Legal Services 2020 § Evidence Compendium § 53
Levels of innovation and technology adoption
108. Our primary source of evidence for it in the next three years (Figure 4.7). measuring innovation is the LSB’s This was followed by ID checking tools, innovation and technology survey. There electronic signatures and email security have been two waves of the survey – in (used by 46%), then interactive websites 2015 and 2018 – each asking a sample of (35%). Much less common was Automatic 1,500 regulated and unregulated providers Document Assembly (20%). Technology about their business practices over the Assisted Review, website based virtual previous three years. The 2018 wave assistants and robotic process automation included a new section on technology. were less common still, used by 6% or Note the data pre-dates changes made by fewer87. providers following the Covid-19 pandemic, as well as major regulatory reforms, such 112. The picture is not uniform across the as the SRA’s Standards and Regulations sector. The highest levels of radical service and market transparency rules. innovation were among unregulated businesses (12%), three-times higher Scale of innovation and technology than barristers (4%). Innovation was adoption significantly higher among young firms (16% of 0 to 2 years old) and larger firms 109. The survey measures different types (18% of 50+)88. Research commissioned by of innovation using standard industry the LSB indicates that ABS and non-lawyer classifications. Overall, levels of innovation involvement are important in fostering were unchanged between the two waves innovation89. and fell on some measures. Just over a quarter (26%) of providers introduced ‘service innovation’ – defined as new or significantly improved services – between 2016 and 2018 (28%, 2013 to 2015)86.
110. 7% of providers introduced ‘radical service innovation’ – defined as new to market services – between 2016 and 2018. This was not significantly different from 2015.
111. Availability of new technology or ICT developments was ranked by providers as the biggest influence on introducing new ways of delivering services. Even so, delivery innovation fell between the two survey waves and adoption of emerging technologies appears relatively modest. Of the ten technologies tested, the Cloud for online storage was the most used (52%) with another 10% planning to use 54 § The State of Legal Services 2020 § Evidence Compendium
Figure 4.7: Levels of use of ten emerging technologies
100 4% 4% 5% 5% 6% 6% 6% 6% 7% 9%
90
80 33% 37%
46% 70
66%
60 10% 79% 77% 12% 78% 84% 50 89% 87%
14% 40
30 52% 46% 9% 20 35%
12% 13% 7% 20% 10 5% 3% 4% 6% 6% 5% 4% 2% 2%
Interactive Live chat The Cloud ID Checking Custom Technology Automated Robotic Predictive Distributed website /virtual etc etc built apps Assisted Document Process tech Ledger assistants Review Assembly Automation Technology
Using Plan to use in the next 3 years No plans and not using Unsure
Note some percentages do not sum to 100% due to rounding issues.
113. Given the liberalised legislative framework, § The intensity of competition was together with significant deregulatory a significantly stronger influence reforms over the past ten years, on the on service development in 2018 surface this is a disappointing outcome. compared to 2015 However, the sector’s performance should § ABS were significantly more likely to be seen in the context of trends in the have introduced service innovation overall economy where, according to BEIS (38%) compared to non-ABS firms data, innovation for all UK businesses (25%) fell over the same period. And there are § Providers using online services were grounds for optimism that regulatory three-times more likely to have changes in legal services are creating introduced service innovation. Many improvements in the environment that of these changes involved digital will enable higher levels of innovation in communication, such as video calls, future: which have become essential tools § There was a significant drop in since the Covid-19 pandemic the proportion of providers citing § The highest service innovation was regulatory constraints as a barrier to in the wills, trusts and probate innovation (see further below) segment (34%). This segment has seen The State of Legal Services 2020 § Evidence Compendium § 55
disruption through the development 117. Focusing on regulation, while the of online, automated services and is weakening impact of regulatory factors one where unregulated providers have on innovation over time is encouraging, meaningful market share. 40% of respondents still identified regulatory factors as a constraint on 114. While the general perception is service innovation. Also, 34% identified that technology is mostly benefiting legal services regulations and 32% UK corporate clients, the Legaltech Startup Government regulations as constraining Report 201990 states that the highest their adoption of emerging technologies. concentration of legal tech startups has In their report on the Legal Access been in ‘consumer services’. These are Challenge, Nesta found that the barriers services designed to meet the needs to innovation from regulation were ‘soft’ of individuals and/ or businesses, such rather than ‘hard’. These stem from a lack as document templates and provider of knowledge and understanding of the comparison tools. The concentration Legal Services Act and its requirements91. of these startups is enabled by several factors, including minimal barriers to entry, 118. Perceptions of regulation as a constraint minimal tech development requirements on service development depend on and an underserved market. the context in which legal services are delivered. Specifically, solicitors’ firms, Constraints on innovation – the role of larger businesses, those serving legal regulation aid clients and those operating in certain areas of law (especially crime) were more 115. While there are many individual examples likely to view regulation as a barrier. of innovation reported in the trade press, Looking at specific areas of regulation, it is hard to point to transformative most respondents felt that regulation change or the emergence of big brands in had no effect on innovation. Of those legal services like challenger banks have who considered it did have an effect, for quickly disrupted the financial services most areas more felt this was positive sector. Why is this? than negative (Figure 4.8)92. In addition, 116. In our survey, the top five constraints between the two waves of the survey on innovation reported by providers there are improved scores in relation were evenly spread: lack of expertise or to perceived impacts of regulations capacity; lack of necessary finance; limited on complaints-handling, professional market opportunities for new services; indemnity insurance and handling client legislative factors; and regulatory factors. money (although the survey preceded Although between 2015 and 2018 the the creation of the Office for Professional proportion of firms citing lack of expertise Body Anti-Money Laundering Supervision or capacity as a constraint increased by (OPBAS) and tighter controls that have 6%, while those highlighting regulation been established in this area). or legislation decreased by 10% and 7% respectively. In relation to adoption of technology, the main constraints identified were perceived risks involved in using unproven technology and lack of IT expertise. A third of providers cited legal services regulation as constraining their use of technology, while 51% agreed with the statement that technology gives rise to greater ethical problems for lawyers. 56 § The State of Legal Services 2020 § Evidence Compendium
Figure 4.8: Areas of regulation – solicitors’ perceptions of positive and negative effects on innovation 2018
Dealing with client complaints 18% 71% 11%
Managing client money 15% 78% 8%
Keeping up with new legal service regulations 25% 56% 19%
Compliance with money laundering regulations 22% 62% 16%
Complying with information requests from a regulator 17% 70% 13%
Requirements relating to client confidentiality and data protection 22% 58% 20%
Professional indemnity insurance requirements 19% 62% 18%
Changes in legislation related to new structures and/or ownership 11% 78% 11%
Changes in legislation related to the legal services you deliver 20% 58% 22%
Positive Nuetral/D Negative
Note some percentages do not sum to 100% due to rounding issues.
119. Beyond the survey data, our stakeholder Committee noted that legal professionals discussions suggest other factors adapted ‘impressively quickly’ to working explaining why innovation has been from home, attending and holding somewhat limited. For example, Nesta hearings remotely93. Technology brings spoke about it being difficult for the opportunity to change the way legal consumers to stimulate competition due services are provided over the next to power imbalances and infrequent use five years. While some fear the impact of legal services. When law firms enjoy of automation on the labour market, strong profits and consumer power is these opportunities could well open up weak, there is little incentive to change. suppressed demand from those on lower Professor Lisa Webley highlighted the incomes who are currently excluded from nature of the legal profession – for the market or those on middle income example, their role as risk mitigators brackets who use lawyers only as a last means they look for problems, they start resort. with precedent rather than a blank sheet of paper – is contrary to an innovation 121. Regulators will play a role in fostering mindset. In her view, the solution lies innovation in the legal services sector, partly in training lawyers to be more with the main tasks being to balance the creative and entrepreneurial. opportunities afforded by innovation with the risks new technologies pose 120. Challenging times can spark innovation. to consumers, and to counter issues of The pace of change to traditional ways digital exclusion. of working that has occurred in the . wake of Covid-19 has been remarkable. This is particularly so in public services through online hearings and digitisation of the courts. In its report on the impact of Covid-19 on the legal professions in England and Wales, the Justice Select The State of Legal Services 2020 § Evidence Compendium § 57
Barriers to innovation The Legal Access Challenge, delivered § Resource and capacity constraints within in partnership by the SRA and Nesta the not-for-profit and advice sector Challenges, was a £500,000 challenge which currently supports many of the prize for early stage digital technology most vulnerable solutions that could provide help for § Differing levels of vulnerability and individuals and SMEs to understand and capability amongst users, meaning that resolve their legal problems. multiple channels of support need to be Based on their experience of designing available and running the Legal Access Challenge, § Low awareness of digital legal services Nesta Challenges highlighted the amongst customers and potential low following ten barriers to lawtech trust innovation94: § Cautious and risk-averse attitudes § Collaborative working on strategic amongst current legal practitioners objectives: There is a need to continue which present a barrier to the adoption the development of opportunities for of innovation and a reluctance to try collaborative working across the legal new approaches to delivering legal services market on strategic objectives services to improve access to justice § The fragmented nature of the legal § Challenges in obtaining the right mixture sector currently serving individuals and of expertise and collaboration between small businesses, which individually providers who are closest to users, have lower capacity to invest in technology experts and legal experts innovation and new forms of services § A lack of standardisation of legal § Challenges in developing attractive documents and processes, which can business models for new services whilst make it difficult or impossible to develop maintaining affordability for end-users automated solutions that can work in more than one specific instance § Lack of access to data for use in developing new solutions, including court data or standardised data from previous customer conversations and cases 58 § The State of Legal Services 2020 § Evidence Compendium
Unregulated market
122. The size of the unregulated sector is 125. In relation to small businesses, surveys difficult to calculate with precision. In suggest unregulated businesses primarily the absence of official statistics, we rely operate in areas such as employment and on consumer surveys, but these may intellectual property. More recently, we underreport usage (not least since many observe an increase in the provision of consumers do not check if their provider automated online documents across a is regulated). In the Individual Legal wide range of business matters. Needs Survey 2020, only 1% respondents reported using a for profit unregulated provider as their main adviser95. Extrapolating, this equates to just over 42,500 consumers per year.
123. In a survey of individual consumers, the CMA found that around 4% of respondents had used unregulated firms as their only or main provider, mainly in will-writing96.
124. Figure 4.9 reproduces the findings of a mapping exercise undertaken for the LSB in 2016, which we consider to be the most reliable data source. This used a combination of desk research and data from the then latest individual and small business legal needs surveys. This found that unregulated firms were used in 4.5-5.5% of cases in which individual consumers paid for advice or representation. There was higher market share in areas of law such as will-writing and employment97. Extrapolating these figures, unregulated will-writing firms may prepare around 130,000 wills a year, but this is still likely to be an underestimate. It was recently reported that Farewill, a relatively new entrant, claimed to have met its target of preparing 10% of all wills in the last year98. The State of Legal Services 2020 § Evidence Compendium § 59
Figure 4.9: Unregulated legal services providers
Consumer problem type Indicative market share of for Types of unregulated providers profit unregulated providers
§ Online divorce providers 1. Family (divorce) 10-13% (EI 2016) § Fee-charging McKenzie Friends 2. Property, construction § Landlord advice services 10-11% (ILN 2016) and planning § Tenant eviction services § Wills and estate administration providers 3. Will, trust and probate 7-9% (ILN 2016) § Specialist will writers § DIY/automated providers § Trademark and patent providers 4. Intellectual Property 7-8% (EI 2016) § Invention promotion companies § HR/business support services 5. Employment 4-5% (SB Legal Needs) § Fee-charging McKenzie Friends
6. Conveyancing 2% (ILN 2016) § DIY/automated providers
7. Injury 1-2% (ILN 2016) § HR/business support services
8. Civil liberties 1-2% (ILN 2016) § Fee-charging McKenzie Friends
126. There is mixed evidence of the benefits of there was a lack of evidence about this unregulated providers: part of the sector
§ Some evidence that will-writing firms 127. The CMA observed that consumers rely may be a third cheaper than solicitors’ on regulated titles, such as ‘solicitor’ or firms ‘barrister’, as an important indicator of § Unregulated providers exhibit the quality, but without a clear understanding highest levels of radical service of the significance of these titles in terms innovation of regulatory protection. This means that § 1 in 5 consumers are dissatisfied consumers may avoid using unauthorised with the service they receive from providers even in situations where they 99 unregulated firms (almost three times might benefit from using them . Similarly, greater than regulated providers) in his review of the legislative framework, Professor Mayson noted that the current § The Economic Insight study for system presents an ‘all-or-nothing’ LSB identified the main risks of contrast between who is regulated for the unregulated firms as relating to provision of legal services and who is not: consumers not making informed ‘individuals or businesses wishing to offer choices and misleading advertising only nonreserved legal activities … are claims. The research did not assess the both unregulated and unregulatable’100. technical quality of work § In its market study, the CMA observed few complaints made to Trading Standards or Citizens Advice and very few consumer protection cases brought against them, but also noted 60 § The State of Legal Services 2020 § Evidence Compendium
128. The SRA has recently removed restrictions on solicitors working in unregulated firms, which may improve their ability to compete. It is likely that unregulated businesses represent a similar proportion of the will-writing market as licensed conveyancers in the residential conveyancing market. Therefore, there is mixed evidence as to whether unregulated firms face barriers to successful entry in the market, at least no more so than regulated providers other than solicitors and barristers. However, while operating within a framework of general consumer law, they offer lower protections to consumers and often offer no access to redress.
129. The Economic Insight study noted that many unregulated providers operate online. Given Covid-19 is likely to accelerate a permanent shift to more remote delivery of legal services, unregulated firms are well positioned to grow market share. In Professor Mayson’s view, the prospect of increased use of unregulated providers suggests a need for short-term reform to regulation that would bring them within the scope of regulation. The State of Legal Services 2020 § Evidence Compendium § 61
WALES Navigating the market § Individual consumers are less likely to The LSB’s research illustrates that, while search for details of services or pricing there are some differences in experience, in advance of engaging a legal service similar challenges exist in Wales and provider England, principally the linked issues of § Less fixed fee billing and less addressing unmet need and increasing transparency on price in Wales competition in the market. § Similar levels of service satisfaction for Looking across our research evidence, individual consumers, although small key findings, include: business consumers in Wales tend to be Innovation more satisfied § A higher proportion of firms in Wales In October 2019, the Commission on than England have introduced any new Justice in Wales published the findings or significantly improved services to of its review of the operation of the clients justice system in Wales and set a long- term vision for its future.101 It concluded § There are proportionally fewer ABS firms that the people of Wales are being let in Wales down by the system in its current state § Both individual consumers and small and that major reform is needed to the businesses are more likely to use justice system and the current scheme solicitors as their main adviser of devolution. The Commission found that legal aid cuts had hit Wales hard Access to justice and resulted in: advice deserts in rural and post-industrial areas; a serious risk § No statistically significant differences to the sustainability of legal practice, between Wales and England in relation especially traditional high street firms; to types of legal need, levels of unmet and increases in litigants-in-person. need, problem resolution strategies, obtaining professional help, or Separately, the Welsh Government perceptions of the legal system commissioned a rapid review of the legal sector in Wales102. The key findings § Small business consumers in Wales included concerns over the long-term are less likely to consider that lawyers sustainability of the profession with the provide a cost-effective means of percentage of young solicitors higher in resolving legal issues England than Wales, while the percentage § The prices of common legal services of older lawyers is higher in Wales. It offered by legal service providers in found that law firms in Wales are heavily Wales are 17% cheaper on average than reliant on private client work such as firms based in England conveyancing (which is dependent on wider economic factors) and areas which are being digitised such as divorce, probate, and power of attorney. Also, the lawtech sector and online legal services market barely exists at all. 5. REGULATION THAT COMMANDS PUBLIC AND PROFESSIONAL CONFIDENCE The State of Legal Services 2020 § Evidence Compendium § 63
Summary
Quality of legal services § The professional ethics of in-house lawyers has come under increasing § Consumer satisfaction with the quality attention following their involvement in of advice, value for money and customer a series of high-profile public scandals service has improved over the last ten years Perceptions of lawyers and regulation § There remains a lack of objective data § The public perceive lawyers as on the technical quality of legal work, professional and knowledgeable, but but there are concerns about criminal expensive advocacy and youth courts work, immigration and asylum, conveyancing § Two-thirds of the public generally trust and wills/probate lawyers, but trust is consistently much lower among BAME communities § Some public agencies report high numbers of avoidable administrative § Many consumers wrongly assume their errors made by lawyers, but not all lawyer is regulated and do not check. publish details of these Confidence in the performance and Seeking redress independence of the legal system § Positive developments include § There is a strong sense that the criminal greater willingness by consumers justice system is in a state of crisis, to complain, improved standards of reflecting a combination of factors which complaints handling by solicitors and Covid-19 has added to. These include increased public awareness of the Legal inefficiencies and poor performance Ombudsman in the courts against a backdrop of financial pressures, court closures, § However, there remains evidence that concerns about the quality of advocacy, many people lack the confidence and failures in disclosure of evidence and information to complain, especially low judicial morale those with a disability. There is a high proportion of disabled and BAME § Some evidence of growing concern complainants to the Legal Ombudsman about loss of judicial independence seen in surveys and international Professional conduct benchmarking studies § Lower volumes of cases have generally been brought to the SDT since 2013, whereas more recently the BSB has opened more cases against barristers. There have remained low volumes of cases involving other legal professionals 64 § The State of Legal Services 2020 § Evidence Compendium
Quality of legal services
130. We split our analysis between measures of historically been lower. However, it too service quality and technical quality. has seen an improving picture over time, increasing from 57% in 2013 to a high of Service quality 64% in 2020.
131. The LSCP’s Tracker Survey shows that 134. Despite this positive picture, there are overall consumer satisfaction with the differences in satisfaction across the service received has remained consistently population. Satisfaction rises with the age high over the last ten years, reaching of respondents, for example 70% of 18- 84% in the last three years. However, this 24yr old respondents compared to 88% of varies across demographic groups (see those aged 55+ are satisfied. In part, this below). may reflect greater experience.
132. Satisfaction with the quality of advice has 135. Ethnicity is a key differentiator: 86% of followed a similar pattern, but increasing White respondents were satisfied with the by a wider margin over time, from 76% in overall service they received compared 2012 to a high of 82% in 2020. to 76% of BAME respondents. This is also true in relation to value for money where 133. Satisfaction with value for money – where the corresponding figures are 65% and consumers weigh price and quality 56%, and for quality of service (where the considerations in the balance – has corresponding figures are 84% and 75%).
Figure 5.1: Consumer satisfaction 2012 to 2020
90%
85%
80%
75%
70%
65%
60%
55%
50% 2012 2013 2014 2015 2016 2017 2018 2019 2020
Service Value for money Quality
Q140_b Service you received from your provider. Q 40. Do you think the overall service and advice provided was…? Q130_c. The quality of advice. Legal Services Consumer Panel 2012 to 2020 “Tracker Survey Data Tables” The State of Legal Services 2020 § Evidence Compendium § 65
136. There is variation within the BAME work where there are winners and group: service satisfaction was lowest losers. The legal needs data shows much among Chinese (63%), Indian (73%) higher incidence in these areas among and Black African (73%) respondents. White respondents, probably due to Black Caribbean respondents had the greater economic wealth in this part of highest levels of satisfaction. There is a the population. Therefore, differences similar pattern for value for money with in the services that the population uses satisfaction again lowest among Chinese may partly explain variation in service respondents (44%). Similarly, in the LSB’s satisfaction. Individual Legal Needs Survey, overall service satisfaction among Asian (73%), Causes of dissatisfaction black (77%) and mixed multiple ethnic 138. The LSCP Tracker Survey 2020 explores (77%) groups was significantly lower than satisfaction with different elements of White respondents (86%). service. This indicates that timeliness and communication are the two biggest 137. Value for money differs by area of law. sources of dissatisfaction (Figure It is lowest in immigration (41%), family 5.2). Reflecting the findings on overall matters (49%), crime (57%), probate (58%) satisfaction, BAME respondents were and housing (58%). Service satisfaction more dissatisfied with every element of also varies by area of law. Typically, it is service, although the base sizes are small. higher in more transactional areas, such as conveyancing, than in contentious
Figure 5.2: Dissatisfaction with elements of service amongst BAME consumers compared to all consumers
16 14% 14 13%
12 10% 10% 10% 10% 10 9% 8% 8% 8 7% 7%
6 5% 5% 5% 5% 4% 4
2
0 Timelines Communication Empathy Explaining Professional Quality Clarity Clarity things clearly manner of advice on cost on service
All crime areas All civil areas
Bases: Overall satisfaction: 3,623; BAME: 625 66 § The State of Legal Services 2020 § Evidence Compendium
Technical quality these practice areas and are targeting some work accordingly, for example, by 139. There are few identified, objective sources commissioning research, developing of data to measure technical quality in guidance or updating regulatory the sector. 2020 research on quality requirements. One example is work commissioned by the LSCP103 found from the BSB to introduce specific Youth that the absence of objective sources Proceedings competences and guidance106, on quality makes it more difficult for as well as a requirement that barristers consumers to confidently assess legal and pupils register with the BSB and services providers. There is a desire for declare they have the specialist skills, access to impartial information in the knowledge and attributes to work with future, so work is underway to determine young people. appropriate quality indicators. Immigration/asylum 140. For now, we have sought to provide a limited overview of the quality of legal 143. Stakeholders highlighted cases where services using proxies for quality such individuals had been provided poor as complaints, professional indemnity quality advice, for example regarding the insurance (PII) data and professional merits of an appeal on their immigration negligence claims, as well as information status, resulting in serious consequences collected by the LSB through our ongoing for individuals and their families. A 2016 competence project104. BSB thematic review highlighted that immigration clients experience varying Frequently cited quality concerns standards of service across the range of legal services providers in the market107. 141. During our call for evidence on ongoing This work led to the BSB introducing new competence, concerns about poor quality guidance. legal services in certain practice areas were frequently cited by stakeholders105 144. In relation to asylum, research in this area and in some cases those citations are includes a 2016 report commissioned by supported by datasets or research. the SRA that found concerns about: the competence of solicitors undertaking Figure 5.3: Service quality concerns cited by appeals; sometimes solicitors lacking area of law the skills to obtain and record sufficient, FREQUENCY OF relevant information from asylum seekers; PRACTICE AREA CITATION and lacking knowledge about the law 108 Immigration/asylum 16 underpinning the specifics of cases .
Criminal 10 145. Legal Aid Agency peer review data shows Conveyancing 10 that the number of contracted providers for immigration/asylum scoring below Wills/probate 9 three across five quality thresholds Youth 6 was over 30% in 2017/18, up from 7% in 2010/11109. This is in contrast with improvements measured in other areas 142. It should be noted that legal services of law such as housing and family. A in each of these practice areas are score of three or above is required for used by consumers in vulnerable providers to meet their contractual circumstances and/or consumers that requirements. are infrequent purchasers, who may be less able to identify poor quality service. Regulators are alert to concerns with The State of Legal Services 2020 § Evidence Compendium § 67
Criminal and youth advocacy Conveyancing
146. Stakeholders across the spectrum 149. Stakeholders raised concerns that acknowledged that concerns about the residential conveyancing attracts the quality of some criminal advocacy have largest volume of consumer complaints to persisted for some time. They noted the LeO.114 Conveyancing was also responsible potentially serious consequences when for over half of PII claims according to poor quality advice leads to, for example, previous data analysis completed by the a loss of liberty or further suffering for SRA in 2016115. victims of crime when a conviction is not achieved. It is worth noting that in the 150. HMLR publishes data about the number call for evidence for the LSB’s ongoing of requisitions it raises on applications to competence project, several of the circuits register land and property transactions referred to having measures in place to lodged by legal professionals on a address issues of poor performance, but it quarterly basis.116 It is estimated that is not clear how often such measures are sending and servicing these requisitions required. comes at a cost of between £2-3 million per year in HMLR staff time and cost, in 147. 2018 joint research commissioned by the addition to the time/cost implications for SRA and BSB into judicial perceptions of those lodging applications. Outstanding the quality of criminal advocacy found requisitions delay the completion of that while the quality of advocacy was registration, which is the final legal step in generally considered to be competent, completing and confirming transactions standards were seen to be generally with land and property. In some cases, if declining in relation to core skills such requisition points are not resolved HMLR as case preparation110. A previous can cancel applications, leaving buyers independent report prepared by Sir Bill (and other beneficiaries) unprotected Jeffrey in 2014 highlighted concerns about because their interest is not registered. the quality of some criminal advocacy and some advocates taking on cases beyond 151. As part of the call for evidence for our their level of competence,111 which is ongoing competence project, HMLR consistent with the findings in the 2010 shared information with us about the Smedley report on the performance of different types of requisitions made in the solicitor advocates in the higher courts year to 30 March 2020, some of which are (criminal and civil). the result of avoidable errors made by legal professionals. 148. Specific to youth work, 2015 research commissioned by CILEx Regulation 152. The two most common types of and the BSB found that the quality of requisitions were restrictions (14.5%) and advocacy was highly variable and there variations in names (12.5%). The latter is was a mixed ability for advocates to an example where requisitions are the communicate clearly and appropriately result of avoidable errors made by legal with young people112. As noted above, the professionals, because the register shows BSB has since developed specific Youth the names of the property owners and all Proceedings competences. In 2021 the documents lodged either need to match SRA will begin random sampling of the up with those or explain any discrepancy. training records of solicitors practicing in 153. We note that requisition rates by firms youth courts, following its consultation on range from 8-50+%, with no one sector ensuring high standards of advocacy. It standing out. This suggests that there is no plans to also introduce revised criminal specific barrier to firms having appropriate and civil higher rights of audience standards113. 68 § The State of Legal Services 2020 § Evidence Compendium
measures in place to be able to lodge PII market is a changing claims profile high-quality applications. including a rise in claims and a rise in higher value claims121. 154. The SRA conducted a thematic review of conveyancing in 2019, which found that 158. A survey of firms by the Law Society in over 90% of firms received requisitions 2017-18 found that 24% notified their that were avoidable, although the majority insurer of circumstances that may give of firms said that this was exacerbated by rise to a claim against the firm122. Overall, HMLR making inconsistent decisions. The 10% had an insurance claim made against report also noted that some firms failed the firm (rising to 36% for firms with 11-25 to include all of the potentially applicable partners) and 9% were subject to a Legal services and fees in their initial quotes to Ombudsman decision requiring the firm to consumers117. pay a remedy (rising to 23% for firms with 11-12 partners). 2% of firms had faced Other evidence of administrative errors disciplinary action. 155. We have talked to other public agencies 159. Bar Mutual Indemnity Fund data shows about ongoing competence, including the that of the 225 claims in the 2018-19 policy Office of the Public Guardian, Intellectual year, personal injury accounted for the Property Office, HMCTS and Foreign and highest number, followed by chancery – Commonwealth Office. While data is contentious and family – other. The most not collected or made available publicly, common errors were client dissatisfaction/ our discussions suggest that potentially fees, followed by poor advocacy and avoidable errors on forms is not preparation and ignorance of the law123. uncommon. Professional negligence claims Insurance 160. Another broad proxy of technical quality 156. Information about claims and premiums is the volume of professional negligence for PII is of some use as a proxy for quality, claims against solicitors and barristers, although a lack of data availability means which can be brought by individuals and it is difficult to meaningfully identify PII businesses. Figure 5.4 shows fluctuating trends in different practice areas and volumes of claims, however changes in amongst practitioners across the legal data collection practices mean that figures services market. between 2016-19 are not comparable with previous years, nor are figures between 157. All regulators require the professionals 2010-16 comparable with the years they regulate to have PII cover118. This may preceding that period. either be via personal cover or through their organisation. In 2016 the SRA carried 161. After 2016 there was a spike in cases, but out an analysis of a sample of PII data numbers have remained steady for the from 2004 to 2014, which found that 51% last three years and appear low overall. of claims concerned conveyancing119. The trend for solicitors and barristers Claims were also made in the following mirrors that for claims against other areas: commercial (15%), personal injury professions, suggesting nothing unusual (8%), housing (8%), wills and probate about legal services. (8%), litigation (6%) and other legal issues (4%)120. The SRA has not repeated this exercise since, but says the data is considered to remain relatively current. In a recent board paper, the SRA noted that one of the reasons behind the hardening The State of Legal Services 2020 § Evidence Compendium § 69
Figure 5.4: Chancery Division Professional Negligence Claims against solicitors and barristers 2002 to 2019
225
200
175
150
125
100
75
50
25
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Royal Courts of Justice Annual Tables 2019, Civil justice statistics quarterly: January to March 2020 70 § The State of Legal Services 2020 § Evidence Compendium
Seeking redress
Awareness of routes to redress 165. An SRA sweep of 500 law firm websites in March/April 2019 found only a 162. When it came to complaining, just over quarter (of the 447 who had working half (54%) of the LSCP Tracker Survey websites) were fully complying with its 2020 respondents said they knew how transparency requirements; compliance to go about making a complaint about was worst on signposting to complaints the service they had received, a fifth processes126. The BSB found only 37% (19%) said they did not, while just over of barristers, chambers and firms fully a quarter (27%) were not certain. The complying with its rules on price and degree of confusion was confirmed by a service transparency127. Common failings follow up question where only two thirds for all barristers included failing to provide of respondents (65%) knew to complain a link to decision data on the Legal to the firm itself first, before complaining Ombudsman’s website. to the Legal Ombudsman. This is not significantly different from 2017124. Confidence in complaining
163. Just under half (47%) of LSCP Tracker 166. In the LSCP Tracker Survey 2018, 44% of Survey 2020 respondents found it easy respondents felt confident, while 30% felt to find out if they could complain to the unconfident, in making a complaint about Legal Ombudsman, compared to 7% who legal services they had received128. These found it difficult and another 7% who figures have remained stable over time. didn’t know, 18% found it neither easy or Recent users of legal services were more difficult. Just over a fifth (22%) didn’t try likely to be confident and a demographic to find out how to take their complaint breakdown shows that confidence further. The percentage finding it easy is increases with age. Respondents in the not significantly different from 2017125. A,B,C1 social group were more confident (46%) than those in the C2,D,E group 164. There is evidence of increasing awareness (39%)129. BAME respondents (38%) were of the Legal Ombudsman among the less confident than White respondents public and recent users of legal services – (48%); confidence was lowest among see Figure 5.5. Chinese (30%), Pakistani (35%) and Indian (36%) groups. Figure 5.5: Awareness of Legal Ombudsman
AWARENESS 167. The LSCP has drawn attention to the INDICATOR 2017/18 2018/19 2019/20 issue of ‘silent sufferers’ – people who do nothing when dissatisfied with a legal Percentage of service. This has fluctuated over time, but general public that 56% 68% 71% have heard of the overall has fallen from 43% to 36%, hitting Legal Ombudsman a peak of 49% in 2017. While base sizes Percentage of are small, White respondents (39%) were users of legal more likely than BAME respondents (29%) services in the last 64% 75% 79% not to act. two years that have heard of the Legal Ombudsman The State of Legal Services 2020 § Evidence Compendium § 71
Figure 5.6: Silent sufferers
50%
40%
30%
20%
10%
0% 2012 2013 2014 2015 2016 2017 2018 2019 2020
Base: Dissatisfied consumers (243): You said you were dissatisfied with the service received from your provider. What was your response to being dissatisfied? Response option: ‘I didn’t do anything about it’.
168. In 2017, the SRA and Legal Ombudsman 170. The collection of data on first-tier published research showing the most complaints varies across the regulators. common barriers to making a complaint Not all regulators collect or publish data related to people having the confidence and how they categorise data varies, which and information to complain. There were means it is not possible to get a consistent also concerns about whether the solicitor view across the sector. would handle the complaint fairly or take notice130. The research highlighted Complaint volumes disparities in the experience of disabled 171. The SRA has published an analysis of first- people. People whose day-to-day activities tier complaint handling trends in each were limited by disabilities were more of the last two years131. Volumes of first likely to say they do not understand the tier complaints increased from 26,583 in complaints procedure (21%) or know 2012 to 30,856 in 2019. Between 2014- how to complain (25%), compared to 4% 18 complaint volumes stayed at around and 17% of consumers whose day-to-day 28,000, so there was a rise in the previous activities were not limited by disabilities. 12 months. Also, 23% of respondents with some disability said they were happy with 172. In 2018, practitioners regulated by how their complaint had been resolved CILEx Regulation reported 170 first-tier compared to 43% without a disability. complaints out of 7,587 legal executives. The Costs Lawyer Standards Board First-tier complaints regulated practitioners received five first- tier complaints in 2019 out of a population 169. Complaining to the firm first, via that of 733. In 2019, there were 10 first-tier provider’s in-house complaints handling complaints referred to the Notaries procedure is known as a first-tier Society, among approximately 775 complaint. If consumers are not satisfied notaries they regulated. IPReg registered with the response, they can then complain practitioners received 148 first tier to the Legal Ombudsman; this is known as complaints in 2019 out of a population of a second-tier complaint. 3,102. Between 2015 and 2019 the number 72 § The State of Legal Services 2020 § Evidence Compendium
of first tier complaints per year has ranged compared to 72% in 2012. Larger firms from 137 to 237132. were more likely to resolve complaints, possibly because they had dedicated 173. Although there is likely to be some resources to deal with complaints.136 underreporting of complaint volumes, the data suggests that a small fraction of 177. CILEx Regulation also have information transactions result in complaints. However, on outcomes, although using different this should be seen in the context of the categories. The most common outcome compliance issues and barriers consumers (20%) between 2016 and 2018 was that the face to complaining set out above. recipient established that the complaint was unfounded. The second most Complaint causes common outcome was that the recipient provided a full written explanation for 174. SRA analysis of first-tier complaints about the firm’s decision to the complainant. In solicitors between 2012 to 2019 show 13% of cases the complaint was resolved the most common complaint themes to the complainant’s satisfaction, in were delay (18%), failure to advise (13%) 10% the recipient apologised to the and excessive costs (12%)133. For first-tier complainant and in another 10% of cases, complaints compiled by CILEx Regulation, the complainant was referred to the Legal between 2016 and 2018, nearly a fifth Ombudsman137. (19%) were about delay, while 10% felt that costs were too high, 6% of complaints Second-tier complaints were about failure to advise and 5% 134 about failure to progress . Excessive 178. The number of second-tier complaints costs or deficient cost information was accepted by the Legal Ombudsman the most common area of complaint appears to have decreased slightly over (65) for lawyers regulated by IPReg. This time. The figures for the last two years was followed by failure to keep informed are not a reliable indicator of underlying (31), delay or failure to progress (21), and demand due to significant backlogs in failure to follow instructions (19). the stage where complaints are assessed as being eligible and ready to pass to Standards of complaint handling investigators138. In its budget applications 175. The Legal Ombudsman reported that it for these years, the Office for Legal assessed first-tier complaints handling as Complaints stated that underlying demand inadequate in 25% of cases it investigated has remained stable. in 2019-20, and this has been consistent Figure 5.7: Legal Ombudsman complaint for the last couple of years. The most volumes common reasons for finding inadequate handling of complaints were: not YEAR COMPLAINTS ACCEPTED responding to the complaint at all, not 2011-12 8,420 responding within the 8-week time limit, 2012-13 8,430 and not addressing all of the complaints raised. When service providers do 2013-14 8,323 respond, there are often issues within the 2014-15 7,635 responses that mean they are less likely to 2015-16 7,033 resolve matters in the initial stages135. 2016/17 7,223 176. The SRA’s data provides evidence of 2017/18 7,425 improving standards in first-tier complaint 2018/19 4,022 handling. In the 2019 data, 80% of 2019/20 6,425 complaints were resolved by the firm, The State of Legal Services 2020 § Evidence Compendium § 73
179. From 2017-18 to 2019-20 the proportion last year compared to 25% in 2018/19. of complaints (by frequency) by area This is followed by personal injury (15%), of law has remained steady with family law (12%), and wills and probate residential conveyancing being the most (12%). These four areas of law account for common area of complaint, although around half of the Legal Ombudsman’s this accounted for 29% of all complaints annual caseload.
Figure 5.8: Complaints to the Legal Ombudsman: proportion of caseload by area of law139
6. 7.
2. Personal Injury (15%) 4. Wills and Probate (12%)
8. 9.
11. 13.
1. Residential Conveyancing 14. (29%) 3. Family Law (29%) 5. Litigation (8%) 10. 12. 15.
nnn 6. Crime (5% nnn 11. Commercial Conveyancing (2% nnn 7. Immigration and Asylum (4% nnn 12. Social Welfare (2% nnn 8. Other (4% nnn 13. Commercial law (1% nnn 9. Employment Law (4% nnn 14. inances (1% nnn 10. Property (3% nnn 15. Consumer Law (0%
Base: 6,425.
180. Complaints were most often about delay/ be resolved at the first tier (90%), it is still failure to progress and failure to advise first equal in the most common causes (both 24% in 2019/20), followed by poor of complaints dealt with by the Legal communication (21%), cost (combining Ombudsman. This suggests that delay is excessive cost and cost information the single biggest cause of service failure deficient: 19%) and failure to follow in the sector, at least among solicitors’ instructions (13%). Generally, these figures firms, although the Legal Ombudsman has map well against the SRA’s data on the noted that quite often it finds a perceived types of complaints most often resolved at delay caused by poor communication and the first-tier stage. lack of updates140.
181. In the LSCP Tracker Survey 2020, one in 182. The proportion of complaints involving ten consumers (10%) were dissatisfied issues with cost has stayed static despite with the “timely way in which your matter increased regulatory focus on price was dealt with”. In the SRA data, delay transparency. However, it may be too causes 18% of complaints to solicitors’ soon for the new regulatory requirements firms – the most common cause of on price transparency to be reflected in complaints. Even though delay is the the data given the time lag between the type of complaint that is most likely to 74 § The State of Legal Services 2020 § Evidence Compendium
problem occurring and the complaint 186. The proportion of BAME and people being recorded by the Legal Ombudsman. reporting impairments/disability appears higher than in both the overall population Complaint outcomes and people obtaining professional help in our survey data. This is interesting 183. When cases are resolved by an evidence about the accessibility of the ombudsman a formal decision is made Legal Ombudsman’s service, but also about whether the service has been raises questions we cannot answer from reasonable or not. In the last two years the the available data on the underlying service was deemed to be not reasonable causes. in a slight majority of cases (2018-19: 54%, 2019-20: 51%), whereas in the 187. Only 34 micro-enterprises complained previous two years the service provided to the Legal Ombudsman in 2019/20, was deemed to be reasonable in a slight representing just 0.5% of its caseload. In majority of cases, (2016-17: 54%, 2017- the Small Business Legal Needs survey 18: 53%). This may indicate more cases 2017, respondents were asked if they where the service was not reasonable would want to take a dispute with a legal were resolved by providers or earlier services provider to an independent in the Legal Ombudsman’s processes, ombudsman-type scheme. One in five rather than reflect standards of service (20%) said yes and that they already could, by firms or decision-making patterns by while a further 13% said yes but thought ombudsmen. that such a scheme was not available, indicating that they were not aware of the 184. In 2019/20, no remedy was awarded in Legal Ombudsman141. 46% of cases, a financial remedy in 40% of cases, fee-related remedies in 12% of cases and non-financial remedies in 2% of cases. The proportion of cases where no remedy was awarded is similar to 2018/19 (44%) but lower than the two previous years (2016-17: 52%, 2017-18: 53%). This is consistent with the historical pattern of the proportion of cases where service was deemed to be reasonable.
Who complains?
185. The OLC’s annual report records the characteristics of complainants, including: § Gender – 50.2% male, 47.5% female and 2.1% prefer not to say § Ethnicity – 77.5% white, 19.3% BAME and 3.2% prefer not to say § Impairments/disability – 28.5% yes, 62.9% no, 8.6% prefer not to say The State of Legal Services 2020 § Evidence Compendium § 75
Professional conduct
188. Under the Legal Services Act 2007, the with the remainder brought to the SDT regulatory bodies are responsible for by the public. Prosecution or referral investigating professional misconduct. The depends on the evidence available and SRA received between 10,500 and 12,000 if it is in the public interest. Cases have reports each year between 2015/16 and increased from a dip in 2012/13 and 2018/19. This equated to approximately 2014/15 but have remained lower than one report for every 13 solicitors142. Of between 2008/09 and 2011/12. these reports approximately half were referred for investigation, most of the 190. Each case may result in no order being remainder were referred elsewhere143. made, or one or more decisions. The most From these investigations a very small common decisions are to fine or strike proportion resulted in disciplinary action, off the referred solicitor from the register 37 in 2015/16, 33 in 2017/18 and 50 in so that they can no longer practise. The 2016/17. The top five reasons for taking chart below shows that earlier years have action were: more sanctions than later years. This is consistent with the SDT dealing with § Suspected dishonesty fewer cases in these later years. The chart § Rule breaches also shows lower use of fines over time. § Protect interests of clients The numbers being struck off each year § Breaches of account rules after a dip in 2013 to 2015 are similar in recent years to those in 2012 and § Breaches of solicitors’ indemnity earlier. Conversely the use of reprimands insurance rules has declined over this last decade. The 189. Some of these disciplinary actions resulted numbers being suspended each year are in individual solicitors being prosecuted now much smaller proportions of those by the SRA at the Solicitors Disciplinary being struck off than seven to ten years Tribunal (SDT)144. Over 90% of cases the ago. SDT deals with are referred by the SRA,
Figure 5.9: Cases brought to the SDT over time145
242 236 223 219
141 134 129 125 117
97 96
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 76 § The State of Legal Services 2020 § Evidence Compendium
Figure 5.10: SDT sanctions from 2008/09 to 2019
350
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0 May 08/ May 09/ May 10/ May 11/ May 12/ May 13/ 2014 2015 2016 2017 2018 2019 Apr 09 Apr 10 Apr 11 Apr 12 Apr 13 Dec 13
Struck off Suspension ine Reprimand Restrictions on practice
Compensation Fund while the total value of closed claims has increased from £10.3 million to £18.1 191. Between 2015/16 and 2017/18 the million, the average (mean) payment has number of SRA compensation fund claims decreased from nearly £17,100 to nearly increased and the number of payments £11,700146. In 2018/19 there has been a more than doubled. This has meant that sharp decrease to levels similar to 2015/16
Figure 5.11: SRA Compensation Fund claims 2015/16 to 2017/18
2015/16 2016/17 2017/18 2018/19
Claims made 1,504 2,174 2,648 1,425
Claims closed* 1,516 1,710 3,127* 1,553
Claims that led to a payment 604 680 1,553 488
Total value of closed claims £10.3 million £15.2 million £18.1 million £7.5 million
Average value of payment £17,100 £22,400 £11,700 £22,500
* These may not be the same group of claims made the year before. The State of Legal Services 2020 § Evidence Compendium § 77
192. The top reasons for payouts from the 195. The most common reasons for complaints fund between 2015/16 and 2017/18 between 2015/16 and 2018/19 were: relate to probate, property sale proceeds, § Making misleading or false or conveyancing fraud, deposits (property or unfounded statements or submissions, other), and sale proceeds147. or misleading the court 193. Unlike the BSB, the SRA does not make § Dishonesty specific arrangements for circumstances § Rudeness or misbehaviour (in or out of where a solicitor’s health may affect their court) ability to practise and the risk this poses to § Failing to obtain or renew practicing clients. This was highlighted after a 2018 certificate High Court ruling on an SDT decision to § Performing reserved legal activities strike off three solicitors for dishonesty without authorisation who at the time had mental health § Other actions that diminish trust and issues148. confidence151 Barristers 196. Between 2015/16 and 2018/19, most 194. In 2018/19 the total number of complaints complaints were closed without opened by the BSB’s Professional Conduct investigation and a smaller proportion Department was 479, the highest since were closed after investigation with no 2012/13 (see Fig. 5.12)149. This equates disciplinary action taken. The remainder to one complaint for every 35 barristers. had some action taken (Figure 5.12). Of Barristers are required to report their own those, the smaller proportion were dealt or other barristers’ serious misconduct. In with through ‘determined by consent’ 2015/16 the BSB received 81 reports. This procedures. This is an alternative to an increased to 110 in 2016/17 and 133 in independent disciplinary tribunal where 2017/18 then dropped to 100 in 2018/19. charges are decided with the barrister’s A large proportion result in no action, consent by the Professional Conduct 152 which the BSB take as an indication that Committee . A larger proportion, peaking barristers are more likely to be, ‘erring on at 104 in 2016/17, went to a disciplinary 153 the side of caution’ and report just in case tribunal, where most were proved . The to ensure compliance150. higher numbers in 2016/17 are at least partly due to one barrister (‘Barrister B’) who accounted for nearly 50 cases154.
Figure 5.12: Number of complaints opened by BSB 2012/13 to 2018/19
491 475 479
440 434 408
367
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 78 § The State of Legal Services 2020 § Evidence Compendium
Figure 5.13: Outcomes of complaints BSB155
320
268
229
208 191
153
108 104
76 66 56 49 46 39 40 43
11 9 8 10
Complaints closed Complaints closed Determination Disciplinary Tribunal Sanctions without investigation after investigation by consent
2015/16 2016/17 2017/18 2018/19
197. Those whose charges were proved or number of sanctions, following from the whose case was dealt with through higher number of tribunals. The same determination by consent received a year also saw a peak in the number of range of sanctions (see Figure 5.14). Some barristers disbarred, 11 of which related barristers would have received more to criminal convictions156. Overall, fines than one sanction, such as a fine and and reprimands were the most common another sanction. 2016/17 had the highest sanctions.
Figure 5.14: Sanctions imposed by disciplinary tribunal panels or the BSB Professional Conduct Committee
25
21 20 19 18
16 16 16
11 10
8 9 7 6 5 4 4
2 1 1 0 1 1 1 0 0 0 0
Disbarred Suspended ined Reprimanded Advised as to Prohibited from Other future conduct accepting public access instructions
2015/16 2016/17 2017/18 2018/19 The State of Legal Services 2020 § Evidence Compendium § 79
198. The sanctions imposed for professional complaints compared to the number of misconduct on both solicitors and people regulated. The most common barristers over this period have focused sanctions used have been fines and more on punishment and deterrence than reprimands. on rehabilitation. This may reflect the nature of the cases brought to tribunal 201. CLC received 202 complaints in 2019, up which by their nature consider more from 123 in 2018. Between 2017 and 2019 serious breaches that are often deemed the CLC adjudication panel (equivalent to higher risk. a disciplinary tribunal) gave four sanctions in relation to the four cases they heard; 199. Another area of conduct that the BSB two disqualifications, a suspension and a considers is fitness to practise. This reprimand. considers if a barrister has any health concerns that may affect their ability 202. The Faculty Office received only two to continue practising. This is not a complaints about professional conduct disciplinary consideration and any from 2016 to 2018, resulting in one restriction imposed is made to ‘protect permanent disqualification. In 2019 they the public’ though the BSB notes that received five complaints of which two they rarely receive reports of fitness were referred to by a disciplinary tribunal to practice that do not also involve (the Court of Faculties). Between 2016 conduct157. The numbers between 2015/16 and 2018, CLSB had just two conduct and 2017/18 have been very small. One complaints which resulted in a warning fitness to practice case was considered and an undertaking. IPReg received 14 in 2015/16. Two reports were received in complaints in each of 2019 and 2018 2016/17 of which one was converted into and received 6 in 2017. There have been a complaint. Four reports were received increasing numbers of suspensions in 2017/18, none of which were converted and disqualifications in the same three into complaints. Five cases were logged years. New powers meant that IPReg in 2018/19 of which two proceeded to a could suspend or disqualify registrants fitness to practice hearing158. from 2017 for failing to pay registration fees or for failing to provide complaint Other legal professionals CPD declarations or failing to provide professional indemnity insurance 200. Since 2015 CILEx Regulation has accepted information159. complaints about firms as well as CILEx members. There have been few
Figure 5.15: Complaints and outcomes for CILEx Regulation
2016 2017 2018 2019 Conduct complaints received 17 42 68 66
Complaints closed without 0 14 33 22 investigation
Complaints closed after 0 1 4 23 investigation
Determination by consent 4 3 2 1
Disciplinary Tribunal 106 18 23 25
Sanctions 106 20 22 5
Source: Data provided by CILEx Regulation 80 § The State of Legal Services 2020 § Evidence Compendium
In-house lawyers
203. There are around 130,000 in-house lawyers, making up around 46% of the legal profession, yet there is relatively less focus on their activities.
204. In recent years, some leading academics in the field (see box), have highlighted a series of scandals where the actions and omissions of in-house lawyers have been put under the spotlight. These scandals include the drafting and use of Non- Disclosure Agreements through to phone- hacking by newspapers and the Panama Papers affair.
205. In his review of the legislative framework, Professor Stephen Mayson recommended that in-house legal departments should be regulated as a separate regulated business unit within their organisations. Separately, in June 2019 a team of academics at UCL published guidelines to boost the roles of, and relationships between, in-house lawyers and non-executive directors to help improve corporate governance160. The State of Legal Services 2020 § Evidence Compendium § 81
PROFESSIONAL ETHICS The findings include: UNDER THE SPOTLIGHT § How in-house lawyers respond to uncertainty in the law is a determinant Professor Steven Vaughan, Professor of ethicality. In-house lawyers more Richard Moorhead and Cristina Godinho inclined to take the view that their role have addressed ethical dilemmas facing is to take advantage of uncertainty in in-house lawyers in their book, In-House the law for the business are, on average, Lawyers’ Ethics: Institutional Logics, Legal less ethically inclined Risk and the Tournament of Influence161. § Client interests, and effectiveness and Their book draws on a survey of 400 in- integrity principles were more strongly house lawyers and 67 in-depth interviews, influential than independence and the largest ever study of in-house lawyers legality principles in the world. It poses the question: how far does going beyond being a lawyer § Regulatory rulebooks frame conflict with or entail being more ethical? professional principles in ways that can The authors point out that the legal be misunderstood or misinterpreted, for profession is often at the frontline of example by not ranking them in order difficult ethical questions, faced with § Interviewees were hazy on the content the tensions of professional obligation of their own code of conduct and commercial pressure. They note it § 36% of in-house lawyers surveyed has been said that working for a single agreed that loopholes in the law that employer, and being embedded in the benefit the business should be identified business, can see in-house lawyers taking and 32% agreed that they were on the norms and behaviours of their sometimes asked to advise or assist on employers – a form of ‘clientitis’ – and things that make them uncomfortable forgetting the bedrock of professionalism ethically on which their expertise rests. While acknowledging that the in-house Central to the book is the notion of a movement is a story of success, they tournament of influence, which can have note that more recently there has been an important effect on how in-house an increase in scandals in which in- lawyers view their role, how they see their house lawyers have been accused of professional obligations, and how they helping to manage illegality through negotiate their position vis-à-vis others in secrecy, to offload risk onto unwitting their organisation. third parties, and otherwise aiding and The authors end on two notes of abetting harmful conduct. ‘The Watergate optimism. First, their survey found a question has moved in-house: where group of in-house lawyers – ‘ethical were the lawyers and what were they champions’ – who were under significant doing?’ pressure in their jobs, but who were able to see and reflect on the ethics of their actions, and who did not shy away from engaging with hard issues. Second, they saw a space – albeit little occupied at present – for ethical leadership by in- house lawyers. 82 § The State of Legal Services 2020 § Evidence Compendium
Perceptions of legal professionals
206. Overall, only 65% of respondents to the more (53% of 18-25yr olds through to 69% LSCP Tracker Survey 2020 – all recent of those aged 55+). There were higher users of legal services – would generally trust levels among social grade A,B,C1 trust lawyers to tell the truth, while 9% (66%) than C2,D,E (60%). would not. This is slightly lower than for teachers and slightly higher than for 208. Prior to the 2018 edition, the trust accountants162. It is important to note question in the tracker survey used a that the survey measures perceptions of sample of the general public covering lawyers as a professional group and does recent users and non-users so the not necessarily reflect respondents’ views results are not comparable to past about individual lawyers they might have waves. Analysis of the Panel’s historical used. data between 2011-18 shows trust fluctuating in the 40-50% range and 207. There is wide variation in trust across generally mirroring changing patterns ethnic groups: 68% of White respondents of trust for other occupations included trust lawyers compared to 51% of BAME in the survey. Perceptions were more respondents. Within the BAME category, positive among those that had used a Black African (39%) and Black Caribbean legal service recently than those who (52%) respondents reported the lowest had not. This suggests that at least some levels of trust, and Asian respondents negative perception comes from a lack of (54%) the highest levels. The figures also knowledge or recent experience of using show that older respondents trust lawyers legal services.
Figure 5.16: Trust in people to tell the truth by profession 2020
86%
70% 65%
57%
39%
30% 24%
16%
9%
Doctors Teachers Lawyers Accountants Shop Bankers Car Builders Estate Assistants mechanics agents The State of Legal Services 2020 § Evidence Compendium § 83
209. The Panel also asked respondents to describe lawyers and the legal profession by selecting from a pre-selected list of words and phrases. ‘Expensive’ and ‘Professional’ top the list (Figure 5.17). More positive words were more frequently chosen, describing lawyers as highly qualified, intelligent, knowledgeable, trustworthy and respected experts. However, a minority of descriptions are less positive, casting lawyers as self- interested, time-consuming, difficult to understand and having hidden fees. These negatives relate more to communication skills and consumer engagement than legal knowledge and application.
Figure 5.17: Words adults in England and Wales chose to describe lawyers and the legal profession 2020
Professional 59% Expensive 57% Knowledgeable 53% A necessity 48% Expert 40% Highly Qualified 39% Intelligent 35% Trustworthy 32% Respected 29% Time Consuming 23% Difficult to understand (i.e. Jargon) 20% Hidden fees 16% Self-interested 15% Good value for money 8% None of these 3% Other 3%
Q. When thinking of lawyers and the legal profession, which, if any, of the following would you use to describe lawyers and the legal profession? (Please think ONLY about lawyers and the legal professions, and NOT the judiciary or the courts. Please tick all that apply) (2020 base=3,623) Source: LSCP Tracker Survey 2020163. 84 § The State of Legal Services 2020 § Evidence Compendium
Regulation: awareness and general public confidence
210. Just under half (49%) of respondents 213. 57% of respondents to the Small Business to the LSCP Tracker Survey 2020 were Legal Needs Survey checked if the provider confident that the rights of consumers are they were using was regulated, while a protected when dealing with lawyers. Just third (33%) had not. Of the third who had under a quarter (24%) were not confident, not checked, 52% assumed their provider while just under a tenth (9%) didn’t would be regulated, and a further 10% know164. This level of confidence is very already knew that they were regulated. similar to 2017 and levels have stayed in A quarter (25%) didn’t think regulation the 46% to 51% range between 2011 and was important, 7% didn’t know how to 2018165. (This question has not been asked find out and another 6% did not know since.) what regulation meant168. Half (50%) of respondents who had used a legal service 211. Generally, consumers either assume their provider to deal with a recent problem, legal provider will be regulated, do not found it easy to find information about consider regulation to be important, or regulation of services. 8% found it hard to do not understand what it means. The find this information, 15% found it neither LSB’s Individual Legal Needs Survey found easy nor hard, 17% didn’t try to seek this that only half (52%) of respondents were information and 10% didn’t know169. confident that they knew what the term ‘regulated legal service’ meant. This was highest among those aged 65 or older (55%) and those with low education levels (53%) had the least confidence166. Four in ten (42%) already knew their main adviser was regulated and a further fifth (23%) checked if this was the case. However, the remaining third (35%) did not know and did not check. When probed on why they did not check, three in ten (31%) assumed their adviser would be regulated and one in ten (13%) felt that regulation was not important.
212. Of those who checked the regulatory status of their main advisor, nine in ten (92%) found this easy, and 8% found it difficult167. The Legal Choices website will contain a facility for consumers to check a range of legal professionals’ disciplinary records. The State of Legal Services 2020 § Evidence Compendium § 85
Confidence in the legal system
214. When it comes to public confidence in the 217. The Covid-19 pandemic has added law and the legal sector the available data pressure to the system. The Justice focuses on policing, criminal justice and Committee noted that the courts and sentencing. tribunals in England and Wales continued to function throughout the pandemic, but 215. Research commissioned by the Sentencing backlogs have mounted and the question Council found a mixed picture regarding is the rate at which the outstanding cases public confidence in the criminal justice can be cleared172. Giving evidence to the system170. 52% said they were confident Justice Committee in May 2020, the Lord that the criminal justice system is effective, Chief Justice said that around 1,000 jury in contrast to 44% who were not. 54% trials had been unable to start every were confident that it is fair, in contrast month since the start of lockdown and to 42% who were not. Confidence varies that the consequences of underfunding according to demographic factors and were ‘coming home to roost’ since while involvement. Young adults (18-34), those technology was being used to conduct as in the highest socio-demographic group many remote hearings as possible, courts and BAME adults were particularly likely had been slow to update ways of working to be confident in the system. Around half after being ‘starved of funds’. of those who had been victims of crime said that they were not confident in the effectiveness (53%) or fairness (49%) of the criminal justice system, though a majority of victims reported that their experience of the criminal justice system made them ‘at least a little’ more confident that it is effective (65%) and fair (54%).
216. More generally, there is a strong sense that the criminal justice system is in a state of crisis. This reflects a combination of factors including inefficiencies and poor performance in the courts against a backdrop of financial pressures, court closures, concerns about the quality of advocacy, failures in disclosure of evidence and low judicial morale. Just before retiring as Head of Criminal Justice, Sir Brian Leveson warned of system collapse without ‘appropriate investment’171. Unlike in many areas of legal services, these issues have come to public attention through reporting in the mainstream media. 86 § The State of Legal Services 2020 § Evidence Compendium
CRIMINAL JUSTICE SYSTEM – IN legal aid with the growth of unrepresented CRISIS? defendants, fragility of the Criminal Bar and criminal law practices, inefficiencies in the system attributable to inadequate resources, 173 The criminal justice system in England and and the condition of the court estate Wales investigates, tries, punishes and § More people defending themselves. Internal rehabilitates people who are convicted or Ministry of Justice research found: these suspected of committing a crime. The criminal defendants were considered less able to advocacy market is made up of solicitors, participate effectively in the process; cases barristers and a small number of legal had longer hearings and case progression executives. was slower; fewer early guilty pleas; and A series of regulatory and wider issues that are concerns about the effect upon witnesses, creating the impression of a system in crisis. with particular worries about defendants undertaking cross-examination, including of Regulatory issues their alleged victim174 § Concerns about the quality of advocacy § Concern about the ‘innocence tax’ – acquitted amidst the collapse of the Quality Assurance defendants can claim back fees under legal Scheme for Advocates aid rates, but campaigners say these rates § Falling levels of crime at the same time as have been set too low. Since 2014, over growth in the potential pool of advocates 120,000 acquitted defendants have paid for 175 has created a situation where a larger group lawyers in crown court trials of practitioners is competing for less work. § Industrial action over fees schemes for Further, market dynamics pose challenges advocates (and judicial review of the parallel to the traditional business model of the scheme for litigators) linked to concern about self-employed bar. In particular, the duty the well-being of barristers and fears over the solicitor scheme, which acts as the main sustainability of the independent referral bar gateway to an advocate, gives solicitors’ firms and criminal law solicitors a commercial advantage. There is a trend of § Inefficiencies and poor performance in solicitors firms keeping more work in-house parts of the criminal justice system against § Anecdotal evidence of disguised referral fees a backdrop of financial pressure. Issues and touting for business include delays and cases not going ahead § Operation of the cab rank rule, most recently as planned or collapsing on the day of trial, in relation to industrial action over fees. with significant regional variation. HMCTS Under the BSB’s code of conduct the cab has set up an ambitious portfolio of change rank rules applies to legal aid work, but the programmes to introduce new technology Bar Council adopted the line that the legal aid and working practices, although the National rates did not constitute a proper fee Audit Office has previously expressed concern that the programme will not be § The emergence of unregulated services that deliverable in the time available176 use technology to help people contest cases involving lower level offences, e.g. challenging § Closure of 250 courts since 2010 with more parking tickets to follow, raising concerns about access to justice, in the context of people who attend Wider issues court tending to be poorer and more likely to rely on public transport § In 2018 the Justice Select Committee concluded that the current arrangements for § The Lammy Review which found criminal legal aid posed a threat to the rule of disproportionality in outcomes throughout law. It linked data on falling levels of criminal The State of Legal Services 2020 § Evidence Compendium § 87
the criminal justice system, with youth justice is ageing and fewer magistrates are being identified as the biggest concern recruited § A scandal over widespread failures in § Low judicial morale due to pay, workload, disclosure of evidence by the police and CPS, working conditions and other issues which led to the collapse of a number of The government has committed to establish a cases and caused miscarriages of justice Royal Commission on criminal justice to review § Concern about falling prosecutions for and improve the efficiency and effectiveness rape. Over the past five years rape cases of the criminal justice process. It has begun reported to police have risen sharply, but a broad review of criminal legal aid, due to the proportion making it to court in that report in summer 2020, and launched a review time has almost halved. Dame Vera Baird, to investigate why the level of prosecutions Victims’ Commissioner, said that the level of rape is so low in England and Wales. An of prosecutions is so low that ‘what we are increased focus on victims of crime has led to witnessing is the de-criminalisation of rape’ the publication of the first cross-government Victims’ Strategy and the possibility of a new § Questions about the future of the magistracy, Victims’ Law at a time when the population of magistrates 88 § The State of Legal Services 2020 § Evidence Compendium
Independence of the legal system
218. International surveys show that while the 219. In the 2020 World Justice Project Rule UK scores reasonably highly in terms of of Law Index177, the factors relating to the rule of law and judicial independence, constraints on government powers and it is consistently outperformed by the regulatory enforcement are among the Scandinavian countries and other English- strongest areas of the UK’s performance, speaking countries. The UK’s score and relative to other countries. Although there relative ranking has dropped recently. is still a gap with the first ranked country – Scores are typically created through expert Denmark (Figure 5.18). As noted in section judgement. 1 the UK’s weakest performing area is the accessibility and affordability of the civil justice system.
Figure 5.18: 2020 World2020 World Justice Justice Project Project Rule ofRule Law, of UKLaw and U Denmarkand Denmark
1.1 8.7 1.2 1. Constraints on 8.6 1 1.3 Government Powers 8.5 1.4 8. Criminal 8.4 0.9 1.5 Justice 8.3 0.8 1.6
8.2 0.7 2.1 2. Absence of 0.6 8.1 2.2 Corruption 0.5 7.7 2.3 0.4 7. Civil 7.6 0.3 2.4 Justice 0.2 7.5 3.1 0.1 3. Open Goverment 7.4 0 3.2
7.3 3.3
7.2 3.4
7.1 4.1
6.5 4.2
6.4 4.3
6.3 4.4 6. Regulatory Enforcement 6.2 4.5 6.1 4.6 5.3 4.7 5.2 4.8 5.1 4. undamental 5. Order and Rights Security
U Denmark The State of Legal Services 2020 § Evidence Compendium § 89
220. On the World Bank Group’s Rule of Law score of 82.2. Since 2010-11, the highest indicator the UK gained an estimated the UK has ranked for this indicator is 6th, score of 1.64 in 2018178. This is the in 2013-14179. same as for Germany but notably lower than the Nordic countries, Switzerland, 222. The (most recent) 2016 Judicial Attitudes New Zealand, Austria, Singapore, the Survey found half (50%) of responding Netherlands, Luxembourg, Hong Kong, judges highlighted loss of judicial Canada and Australia. The UK’s score is independence180. This is a drop from 65% some way below the highest estimated in 2014 but was still the seventh highest score of 2.05, held by Finland. concern for judges. Circuit and District Judges were the most concerned with 221. The UK ranked 26 (out of 141) in the 57% and 55% respectively highlighting World Economic Forum’s 2019 Global this issue. Even though Court of Appeal Competitiveness Report measure of Judges were the group least concerned, judicial independence, with a score of 69.5 a quarter (26%) still rated loss of judicial out of 100. This is a notable drop from independence as a concern. 2018 when the UK ranked 13th with a
Figure 5.19: Percentage of judges most concerned about loss of judicial independence
57% 55%
45%
39%
33% 33%
26%
Circuit Judges District Judges irst Tier Upper High Court Employment Court of Tribunal Judges Tribunal Judges Judges Judges Appeal Judges
Q. What changes in the judiciary concern you most? – Loss of judicial independence181.
223. More recently, 509 judges from England and Wales participated in the European Network of Councils for the Judiciary’s 2019 study on the independence of judges. These English and Welsh judges rated the independence of professional judges in England and Wales at an average of 9.4 (where 10 was ‘highest possible degree of independence’). The average rating of their own independence was marginally lower at 9.3. Although more judges thought that since they had started to serve their independence had deteriorated than improved, a higher proportion thought it had remained the same182. 90 § The State of Legal Services 2020 § Evidence Compendium
Figure 5.20: Judges in England and Wales: Since I started to serve as a judge my independence has...
2% 21% 72% 3% 2%
0 10 20 30 40 50 60 70 80 90 100
Deteriorated much Deteriorated a little Stayed the same
Improved a little Improved much
Base: 508
224. While the large majority of English Parliament (37%) and was smaller still and Welsh judges (82%) agreed that for Government. This was felt to be even court management respected their smaller for Media and Social Media183. independence, this fell to a minority for
Figure 5.21: During my last two years I believe that my independence as a judge has been respected by:
Court management 82% 10% 9%
Parliament 37% 23% 40%
Government 36% 21% 43%
Media 27% 21% 52%
Social Media 17% 43% 40%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Agree - Strongly agree Not sure Disagree - Strongly disagree
Note some percentages do not sum to 100% due to rounding issues. Base: Court management 504, Parliament 508, Government 508, Media 508, Social Media 497.
225. Nearly a quarter (24%) agreed that caseloads had negatively influenced their independence in the two years prior to the survey, while a third (34%) agreed that court resources had done so. A further 11% and 13% respectively were not sure, leaving 65% and 54% respectively who disagreed184. The State of Legal Services 2020 § Evidence Compendium § 91 6. A DIVERSE AND INCLUSIVE PROFESSION The State of Legal Services 2020 § Evidence Compendium § 93
Summary
Composition of the profession limit opportunities and slow career advancement § Improvement made in terms of access to the profession (although more to § Individual examples of professional do), but barriers to progression remain leadership and initiatives by some large a major issue with too few people in law firms that aim to improve social senior positions and too many people mobility, but outcomes still unclear leaving at relatively early stages of their careers Wellbeing § Attainment gaps generally closing at a § High levels of work-related stress and very gradual pace mental ill health with recurring themes including a long-hours culture, fixation § A particularly high proportion of lawyers with billable hours and dealing with the attended fee-paying schools with this pressures that come from managing group having clear advantages in client expectations progressing to senior roles § Covid-19 is increasing incidence of § Reforms to education and training wellbeing issues – over a third of lawyers seek to widen participation, including report that morale and wellbeing have by reducing cost. Apprenticeships are got worse during lockdown, with senior a welcome development; although lawyers reporting most strain. There are still early days, there is evidence these opportunities to put in place permanent are not fully benefiting disadvantaged changes to working patterns that could groups benefit well-being post-lockdown and § Two-thirds of regulators experience have a positive impact on caregivers and challenges building a reliable disabled members of the profession understanding of the diversity profiles of their regulated communities. Judicial diversity Differences in approach make providing § The proportion of judges that are an accurate contemporary and historical women continues to increase gradually, account challenging women remain under-represented in judicial roles, especially at senior level Lived experience § Judges identifying as BAME has § Evidence of differential treatment increased in recent years, but remains of specific groups of lawyers in the lower for court appointments compared profession, but limited authoritative to tribunals, particularly at senior level research on the lived experience of BAME lawyers § Most court judges have a background as a barrister and representation of § Higher levels of harassment and bullying solicitors falls throughout the judicial of women and BAME lawyers selection process § Outdated attitudes and workplace practices impact on disabled lawyers, 94 § The State of Legal Services 2020 § Evidence Compendium
Introduction
226. In this section we provide evidence and commentary on the composition of the legal profession and the lived experience of specific groups. Where data is available both a contemporary and historical account is provided against each of the protected characteristics in the Equality Act 2010 and measures of social mobility, as follows: § Protected characteristics § Sex § Gender reassignment § Race § Disability § Sexual orientation § Age § Religion or belief § Marriage and civil partnership § Pregnancy and maternity § Social mobility § Attendance at a fee-paying school § First generation to go to university § Child caring responsibilities § Caring for others
227. The section also briefly covers issues relating to the wellbeing of the profession. The State of Legal Services 2020 § Evidence Compendium § 95
Availability of data
228. In a diversity policy progress update 231. An important data gap is measurement exercise in July 2020, LSB concluded that of any disproportionality of outcomes in two-thirds of regulatory bodies continued disciplinary procedures and enforcement to experience challenges in building a action. The SRA and BSB have both started reliable understanding of the diversity work to evaluate historical enforcement profiles of their regulated communities. decisions for any differential bias. There are important gaps in the data and poor response rates for some disciplines and certain measures. Further, there are methodological differences between regulators, as well as changes of practice by individual regulators over time. This makes providing a full contemporary and historical account of the composition of the profession challenging.
229. Where there are differences in methodology, we have recalculated the figures to enable consistent reporting across the regulatory bodies, where possible. Specifically, we have focused on practising members of the profession, rather than trainee lawyers. We also excluded those not providing information or giving ‘prefer not to say’ responses. We acknowledge this information is itself valuable, giving insight into views on privacy and confidence that sensitive data will be protected. Therefore, our figures may vary from headline data given in reports produced by regulatory bodies.
230. Some regulatory bodies report comprehensive data alongside detailed analysis and commentary. It is not possible in this state of the nation report covering such a breadth of subjects to capture every nuance of this. Therefore, interested readers should refer to the original datasets. 96 § The State of Legal Services 2020 § Evidence Compendium
Protected characteristics
Sex
232. Figure 6.1 provides the most recent data of notaries are women. In the case of on the sex of legal professionals compared intellectual property lawyers, a possible to the average proportion of women in the explanation is that patent attorneys UK workforce (47%). tend to have scientific qualifications and so reflect disparities in the teaching of 233. Legal executives and licensed science, technology, engineering and conveyancers have the highest proportion maths (STEM) subjects in schools. of women. The proportion of female solicitors and ICAEW probate practitioners 234. There is evidence of differences based on is a little higher than the average for the characteristics of entities and areas the UK workforce, while there is parity of law practised. For example, the SRA for cost lawyers. By contrast, there reports a higher proportion of women is underrepresentation of women in mid-size and larger firms and doing intellectual property lawyers, barristers private client work, and that women make and notaries. In fact, only a quarter up 60% of in-house solicitors.
Figure 6.1: Female legal professionals
78% 72%
54% 49% 47% 41%
33% 27%
SRA BSB CILEx Reg CLC IPReg ICAEW Mo CLSB
Year data collected: 2019 BSB, CILEx Regulation, CLC, CLSB, ICAEW, SRA, 2017 IPReg, MoF The State of Legal Services 2020 § Evidence Compendium § 97
Progression to senior roles in closing the gap has varied across the professions. The SRA reports an 235. Over time, the proportion of women approximate 10% increase in female in the overall lawyer population has partners from 2014 to 2019, while the BSB gradually increased. Often, there has been reports a 3.2% increase in female QCs a significant increase in new entrants since 2015. who are female. For example, women represented 10% of new solicitors in 1970 Experience of women in the profession compared to over 60% in 2016185. This should suggest the picture in the overall 237. The experience of women in the legal population and senior roles will improve profession has been in the spotlight. over time. However, in the past the ‘trickle- While professional bodies have made down’ effect in relation to senior roles has improving gender balance a priority, this not materialised at the rate expected. also follows external events, such as the #MeToo movement, exposing issues in 236. Women continue to be underrepresented the profession that need to be tackled. A in senior roles (Figure 6.2). Half of key theme in the SRA’s first annual report solicitors are women, but only a third are on its investigation, supervision and partners. 41% of barristers are women, enforcement work was sexual harassment but only 16% are QCs. Three-quarters of in the workplace. This was the subject licensed conveyancers are women, but of 70 complaints, 13 of which related to only around half are managers. CILEx the potential misuse of Non-Disclosure Regulation report that 6.9% of female Agreements186. The SDT is now beginning legal executives progressed to partner to hear sexual harassment cases. compared to 10.8% of men. The pace
Figure 6.2: Female lawyers in senior roles (solicitors and QCs)
49%
41%
34%
16%
SRA BSB
All roles Senior roles
98 § The State of Legal Services 2020 § Evidence Compendium
238. In Law Society research, one in seven data shows a 20.1% pay gap for all legal female solicitors reported experiencing professionals, 17.4% for solicitors and bullying, discrimination and harassment 8.8% for legal associate professionals. in the workplace over the past year187. This compares to a 10.1% pay gap for all BSB research found two in five women professional occupations and 8.7% across at the Bar had reported experiencing the economy. Figures are not available discrimination, and a similar proportion for barristers or other specific professions harassment188. due to their small size.
239. A survey of 700 women lawyers by The 241. The gender pay gap for all professional First 100 Years project found that 58% had occupations has reduced by 1.6 experienced or witnessed sexism first- percentage points since 2018 (11.7%)191. hand, but 46% of these did not complain The gap for legal associate professionals for fear of the impact on their careers. fell by 4.6 percentage points over the Respondents expressed concerns about same period (13.4%). However, the gender discrimination and the dominance of men pay gap increased by 4.7 percentage across the upper ranks of the profession, points for solicitors (12.7%) and half a with 52% agreeing that it is still easier for percentage point for all legal professionals men in their organisations to achieve a (19.6%). promotion189. 242. From 2017/18, public and private sector Gender pay gap employers with 250 or more employees have been required annually to publish 240. The gender pay gap reported by ONS is data on the gender pay gap within their a long time-series, calculated from the organisations192. In 2018/19, across all Annual Survey of Hours and Earnings employers who reported, the gender pay which samples from all employee jobs in gap averaged 11.9% based on median all sizes of company190. This is different hourly pay193. Searching ‘law firms’ on the from the gender pay gap based on gov.uk service found 41 returns in 2018/19 compulsory reporting for companies with and 37 returns in 2017/18. The average 250 or more employees (see below). In gender pay gap across these businesses relation to full-time employees, the latest was 22% in 2018/19 (21.2% in 2017/18).
Figure 6.3: ONS gender pay gap, year ending April 2019
GENDER WOMEN MEN PAY GAP WOMEN MEN (HOURLY RATE) (HOURLY RATE) (%) (ANNUAL) (ANNUAL) All legal £24.05 £30.09 20.1% £46,196 £60,072 professionals
Solicitors £20.81 £25.20 17.4% £40,524 £42,494
Legal associate £14.55 £15.95 8.8% £28,261 £31,020 professionals The State of Legal Services 2020 § Evidence Compendium § 99
Gender reassignment 246. Currently it is not possible to report on whether representation of the trans 243. Figure 6.4 provides the most recent community is increasing in the legal data on the proportion of transgender profession as tracking only commenced legal professionals compared to the UK in the most recent round of surveys. population (approx. 1%)194. 3% of notaries In addition, the ONS do not collect said their gender identity was different information about gender reassignment from their sex as registered at birth. surgeries or whether a person identifies Where otherwise reported, the figures as transgender, so it is difficult to be reflect or are close to the estimated confident that the composition of the proportion in the population. profession is representative of the wider population. Further, as identified above, Figure 6.4: Transgender legal professionals concern about discrimination in the CILEX workplace means there is likely to be SRA BSB CLC REG ICAEW MOF underreporting in regulatory surveys/ returns. 1% 0.5% 1.3% 0.1% 0.1% 3% Year data collected: 2019 BSB, CLC, CILEx Regulation, ICAEW, SRA, Race 2017 MoF 247. Figure 6.6 provides the most recent 244. Stonewall report that half of trans data on the proportion of BAME legal and non-binary people (51% and 50% professionals compared to the average respectively) have hidden or disguised this composition of the UK workforce (12%)197. fact at work because they were afraid of discrimination. Further, 24% said that they 248. Costs lawyers have the highest proportion did not get a promotion they were up for of BAME lawyers (28%), more than double 195 at work because they were trans . At the the UK workforce average. The proportion Bar, when asked whether their identity of BAME solicitors is more than 1.5 times was the same as that they were assigned the average, while it is also above parity at birth, for those that responded ‘no’, 81% for barristers. The figures are just under were non-QC and 19% were QCs. parity for other legal professionals. 245. A survey by Crossland Solicitors196 found evidence of transphobia among UK employers. Across all sectors of the economy surveyed, 1 in 3 employers admitted they were ‘less likely’ to hire a transgender person and nearly half (43%) were unsure. While there is further scope for improvement, along with financial services, the legal sector had the highest proportion of employers who said they were ‘open’ to the idea of hiring a transgender worker (Figure 6.5).
Figure 6.5: Proportion of employers more open to employing trans workers
CONSTRUCTION FINANCIAL LEGAL AND SERVICES SECTOR ENGINEERING 34% 33% 25% 100 § The State of Legal Services 2020 § Evidence Compendium
Figure 6.6: BAME legal professionals
28%
21%
15%
12% 11% 12% 12%
9%
SRA BSB CILEx Reg CLC IPReg ICAEW Mo CLSB
Year data collected: 2019 BSB, CILEx Regulation, CLC, CLSB, ICAEW, SRA, 2017 IPReg, MoF
249. Looking at different broad groupings with 252. For SRA regulated firms, there are the BAME population, the proportion of differences in the proportion of BAME Asian lawyers is higher or at parity with lawyers depending on the type of legal wider UK workforce in all parts of the work undertaken by firms. Firms mainly profession, with the highest proportions doing criminal work and those mainly among solicitors and costs lawyers. doing private client work both have a higher proportion of BAME lawyers. For 250. The proportion of black costs lawyers, criminal law firms, 24% of lawyers are solicitors and barristers is above that in Asian and 6% black. For private client firms, the UK workforce, while there is an under- 27% of lawyers are Asian and 10% black. representation of black lawyers in other Firms doing a mixed range of work, those parts of the sector. doing mainly corporate work and firms in the ‘other’ category all have the lowest 251. There is a higher proportion of costs proportion of BAME lawyers, both at 15%. lawyers and barristers from other minority or mixed ethnic minority backgrounds than in the UK workforce. There is underrepresentation in other parts of the profession, especially licensed conveyancers, notaries and ICAEW probate practitioners. The State of Legal Services 2020 § Evidence Compendium § 101
Figure 6.7: Breakdown of BAME groups
MIXED MULTIPLE/ OVERALL BLACK ASIAN MINORITY ETHNIC BAME UK workforce198 2.8% 5.3% 3.8% 12%
SRA 3% 15% 3% 21%
BSB 3.2% 7.1% 4.2% 14.5%
CLC 1.6% 6.1% 2% 9.7%
CILEx Regulation 3.7% 5.9% 2.2% 11.8%
ICAEW 1.3% 8.4% 2.5% 12.2%
MoF 1.4% 8.6% 1.8% 11.8%
CLSB 5.4% 13.7% 7.8% 26.9%
Year data collected: 2019 BSB, CLC, CILEx Regulation, CLSB, ICAEW, SRA, 2017 MoF
253. Since 2014 the proportion of BAME 257. At the Bar, the proportion of BAME pupils lawyers has gradually increased across the is 19% having increased by 2.7 percentage profession but there is variation between points since the previous year. BSB Asian, black, and other minority ethnic or research on differential attainment at Bar mixed backgrounds. Professional Training Course (BPTC) and Pupillage200, and accompanying qualitative 254. Over the last five years there has been research201, showed that aspiring BAME an increase in the proportion of solicitors barristers face additional barriers in from an Asian background for (a rise of entering the profession. An analysis of 6% between 2014 and 2019), while there BPTC data over three academic years has been just a marginal increase in the published in 2020, found an increase in proportion of those who are black or from BAME students over time – the 2018/19 mixed, multiple or other minority ethnic data was up three percentage points since backgrounds. the previous year and 10 percentage points higher than seen in 2012/13- Entry to the profession 2014/15. When controlling for degree class 255. There is evidence of an attainment gap and BPTC grade, UK/EU BPTC graduates between white and BAME lawyers that from BAME backgrounds were less likely begins at entry. to have commenced pupillage than those from white backgrounds202. 256. In an analysis of its most recent Legal Practice Course (LPC) results, the SRA Progression to senior roles found that two-thirds of white students 258. There is little difference between the passed, compared with 48% of Asian proportion of all BAME solicitors and students and 35% of black students. those achieving partner level (fig. 6.8), Pilots of the Solicitors Qualifying Exam but the SRA reports differences by size (SQE) showed that white candidates of firm. Both black and Asian solicitors ‘significantly out-performed’ those of a are significantly underrepresented in BAME background, although there was mid to large size firms (those with six or no evidence the assessment methods more partners). The largest firms (50 plus used were intrinsically biased. The SRA partners) have the lowest proportion of has announced a multi-year project to BAME partners. This contrasts with one increase understanding of why BAME partner firms where a third of partners students perform worse than white are from a BAME background. The rate of students199. increase in BAME partners in one partner 102 § The State of Legal Services 2020 § Evidence Compendium
firms from 2014 to 2019 (38%) is more 261. CILEx Regulation reports that fewer than twice that of firms with 50+ partners BAME Fellows (8.2% - its highest grade (14%). of membership) – have progressed to partnership than white Fellows (89.4%). 259. A study by the Black Solicitors Network conducted in 2017 analysed datasets from 262. In relation to progression, anecdotal ten years of its annual diversity league evidence suggests the lack of visible table203. This found that the proportion of role models and mentors can often fail BAME solicitors entering the profession to inspire those who are entering the had doubled to 20% and this meant the profession and aspiring legal professionals. proportion of BAME partners had also increased. However, only 8% of partners Experience of BAME legal professionals were BAME, compared to 22% of trainees, 263. The McGregor Smith review in 2017 on pointing to high attrition. race in the workplace, which looked across the economy, found discrimination and 260. There is a marked difference in the bias at every stage of an individual’s career, proportion of QCs and all barristers from and even before it begins204. The other BAME backgrounds (9% compared to significant challenge found by the review 15%). Black barristers are significantly was that often in many organisations the underrepresented as QCs (1.1%). The processes in place remained favourable BSB has noted that representation of to a select group of people, usually non BAME barristers continues to improve, BAME individuals. This unconscious but progress is slow and the proportion bias was often reinforced by outdated of BAME barristers generally declines at processes and behavioural norms. higher levels of seniority. The BSB’s 2019 Risk Outlook cites evidence to suggest that BAME barristers, in general, are likely to earn less on average than white barristers.
Figure 6.8: BAME lawyers in senior roles
21% 21%
14%
7%
All roles Senior roles The State of Legal Services 2020 § Evidence Compendium § 103
264. The recent protests resulting from initiatives in place to promote inclusivity, the death of George Floyd in the US including BAME groups. in Summer 2020 has brought the experiences of BAME lawyers, particularly Initiatives black lawyers, into sharper focus. BAME 268. In 2019, prior to Covid-19 and the death lawyers have spoken out powerfully of George Floyd, the BSB established about differential treatment within a Race Equality Taskforce to advise on the profession. Speaking in a personal the development of strategy, policy and capacity, Leslie Thomas QC spoke activity to improve race equality outcomes for many when he said that ‘I’d like it in the profession208. This has informed its recognised that in the legal profession and Equality and Diversity Strategy 2020-2022. in our society we have a problem. If you can’t see there’s a problem you’re part of 269. There are some positive steps that have 205 it’ . resulted from the current higher focus on BAME experiences. This focus has allowed 265. Our desk research found few authoritative organisations like the Black Solicitor studies focusing on the lived experience Network and others to focus on initiatives of BAME legal professionals. The absence that work to support those from a BAME of such studies is a gap in the evidence background progressing: base that needs to be filled as a matter of urgency. It is welcome that listening and § Some city law firms have started to similar exercises have started, but these publish ethnicity (and disability) pay fall short of the in-depth studies on gender gaps that have usefully informed policy and § Awareness of unconscious bias – practice in this area. regulators and firms have started to ensure that there is behavioural 266. In the Law Society’s research, 5% of change in approaching hiring and solicitors reported they had experienced promotion ‘adverse discrimination’, of whom one in § Mentoring and networking to increase five said this related to their ethnicity206. the visibility of those who are in senior BSB research on the experience of women positions to counter impressions that barristers found disparities according there ‘isn’t anyone like me’ in positions to ethnicity: 48% of BAME respondents of leadership reported experiencing harassment, compared to 38% of white respondents. Disability Further, 73% of BAME women barristers said they had contemplated leaving the 270. Figure 6.9 provides the most recent data Bar compared to 67% of white women on legal professionals reporting a disability barristers207. compared to the composition of the UK workforce (15%209). 267. BAME respondents to CILEx Regulation’s 2019 diversity survey, said that compared to white colleagues there was inequality of opportunity, progression is reduced or slower and there is underrepresentation in senior roles. Their experience was that conscious and unconscious bias towards BAME individuals exists, inappropriate language is sometimes used, and socialising opportunities are not inclusive. Positively, respondents also gave examples of supportive workplaces with 104 § The State of Legal Services 2020 § Evidence Compendium
Figure 6.9: Lawyers reporting a disability 274. There has been an increase of 1 percentage point in solicitors reporting a LAWYERS disability since 2014211. REPORTING A DISABILITY Progression to senior roles SRA 3% 275. There is little difference between solicitor BSB 6% partners and non-partners who report CLC 2.1% having a disability. However, for barristers the difference is marked with the number CILEx Regluation 6.1% of QCs reporting a disability being about IPReg – Trade Mark Attorney 0.2% half of that of non-QCs. CILEx Regulation IPReg – Patent Attorney 0.6% states that its data suggests disability may MoF 4.7%* impact on progression within CILEx grades of membership. Qualitative responses to CLSB 5% its survey included individuals speaking ICAEW 3.4% of needing to work harder than other *MoF report 2.2% with an ‘Equality Act disability’ and 4.7% with colleagues to prove themselves. ‘limiting health problems/disability Year data collected: 2019 BSB, CILEx Regulation, CLC, CLSB, ICAEW, Experience of lawyers with disabilities SRA, 2017 IPReg, MoF 276. Research at Cardiff University highlighted 271. As context, the number of disabled that disabled people are ‘an untapped people who are in employment has been resource’ in the legal profession but their increasing since 2013. Even so, while opportunities are limited by inflexible 19% of people of working age report and often outdated working patterns they are disabled, just over half of this and unimaginative job design212. 60% of group (53%) are in employment. Disabled the disabled solicitors and paralegals people have an employment rate that is surveyed for the research reported ill- 28.1 percentage points lower than that treatment at work, of which 80% believed of people who are not disabled – often it was related to disability. 45% of referred to as the disability employment barristers surveyed reported ill-treatment gap. at work; 71% believed it was related to disability. Such treatment often related to 272. There is a much lower rate of disabled poor attitudes or lack of understanding. legal professionals compared to the UK They found that even when entitled to workforce average. There is likely to be a workplace adjustments, legal services significant element of underreporting to professionals often do not request them employers and in regulatory returns as because they fear the consequences of well as under-representation. The support doing so. A significant number who did network City Disabilities report that very make a request experienced ‘ill-treatment, few of those with a disability that they can ignorance or discrimination from senior otherwise hide choose to discuss their personnel’. disability with an employer210. 277. Some discrimination includes what the 273. About 6% of practising barristers and legal report calls ‘misplaced paternalism’ executives report a disability, but this is which slows disabled legal professionals’ still much lower than the UK workforce career advancement. Expectations of average. Only a handful of intellectual physical networking and an emphasis property lawyers report a disability on billable hours as a performance (although IPReg data is old and includes measure are among the things that can prefer not to say responses). disproportionately affect disabled legal colleagues213. The State of Legal Services 2020 § Evidence Compendium § 105
278. The SRA looked at 3,000 firms’ disability Figure 6.10: Sexual orientation of legal inclusion policies, consulting with experts professionals and disabled solicitors, and reviewed LESBIAN/ 214 existing research . This research found GAY BISEXUAL OTHER TOTAL that many disabled solicitors have UK 1.4% 0.9% 0.6% 2.9% downplayed the extent of their disability Population because they do not trust law firms to SRA 2% 1% 0% 3% meet their needs. It found that just 3% of solicitors declared their disability, a figure BSB 4.8% 1.6% 0.4% 6.8% unchanged for a decade. It proposed CLC 2.2% 0.8% 0% 3% steps including ensuring a firm-wide CILEx 2.2% 1.4% 0.3% 3.9% culture that encouraged a positive working Regulation environment for disabled employees, CLSB 6.1% 4.1% 0% 10.2% such as openness in conversations about making adjustments. MoF 1.1% 1.6% 0.3% 3% ICAEW 1.3% 1% 0.5% 2.8% 279. Respondents to CILEx Regulation’s Year data collected: 2019 BSB, CILEx Regulation, CLC, CLSB, ICAEW, 2019 diversity survey told of a range SRA, 2017 IPReg, MoF of issues they experienced relating to their disability. This included: struggling 282. Over time there has generally been an to secure employment and recruitment increase of legal professionals reporting processes failing to provide reasonable they are LGBTQ+. This is particularly adjustments; inflexible, unfair and the case among barristers, where the discriminatory workplace practices; proportion nearly doubled in 2015 to 2019, repeatedly of their need to be proactive in although this may in part reflect efforts to securing necessary adjustments, even with improve reporting among this group. inclusive employers; lack of understanding leading to exclusion at work, particularly Progression to senior roles where a disability is not visible; and fears 283. Barristers are the only legal profession of stigma associated with mental health where the data is broken down by problems. Outside of employer practices, seniority. This shows there are fewer LGB they described problems associated with QCs (4.8%) than non-QCs (7%). difficult physical access to courts. Experience of LGBTQ+ lawyers Sexual orientation 284. The National LGBT survey216 found that 280. Figure 6.10 provides the most recent while the UK is recognised as one of the data on the sexual orientation of legal best countries for LGBT rights in Europe professionals compared to the average LGBT people continue to face significant composition of the UK population who are barriers to full participation in public LGBTQ+ (2.9%215). life. These barriers primarily occur in that this community face a higher rate of 281. There are larger or the same proportions discrimination than their heterosexual of LGBTQ+ legal professionals than in the peers. Stonewall report that more than a wider population. Based on the reported third of LGBTQ+ staff have hidden their data, this is highest for costs lawyers and sexual orientation at work for fear of practising barristers. discrimination217. 106 § The State of Legal Services 2020 § Evidence Compendium
285. In 2017 a report suggested the 288. The SRA reports that the data reflects homophobia is stronger at the Bar than in the average career pattern of solicitors the general population and that over half and when they might expect to become LGBTQ+ barristers had experienced some partners in a firm. The BSB notes that form of discrimination because of their barristers aged between 25-54 have sexuality218. fallen as a proportion of the profession, although this cohort still represents 80% of 286. More positively, law firms took the top the Bar. There are less than 100 QCs aged two places in Stonewall’s 2019 Top 100 under 45. Employers list – Pinsent Masons and Bryan Cave Leighton Paisner. In total, there were 289. It is notable that almost a third of notaries 16 law firms in the top 100. are above retirement age and that the age profile of notaries is significantly older Age compared to other parts of the profession.
287. Figure 6.11 provides the most recent Religion or belief data on the age of legal professionals compared to the average composition of 290. Figure 6.12 provides the most recent data the UK workforce in August 2020. on the number of legal professionals reporting affiliation to a religion or belief compared to the average composition of the England and Wales population219.
Figure 6.11: Age of legal professionals
UK CILEx WORKFORCE SRA BSB CLC REG ICAEW MoF CLSB 16-24 11.3% 1% 0.3% 0.2% 7.5% 17.6% 0% 0.6%
25-34 23.2% 31% 20.5% 15% 28.2% 27.3% 4.9% 25.0%
35-44 33.2% 29% 30.5% 31.2% 23.8% 18.6% 17.5% 30%
45-54 * 22% 29.4% 29.1% 23.3% 19.2% 21.0% 21.9%
55-64 * 13% 14.8% 18.3% 13.6% 14.5% 25.0% 18.1%
65 + 3.8% 5% 4.5% 6.2% 3.7% 2.8% 31.6% 4.4%
* ONS data categories are 35-49 (33.2%) and 50-64 (28.4%) preventing direct comparison220 Year data collected: 2019 BSB, CILEx Regulation, CLC, CLSB, ICAEW, SRA, 2017 IPReg, MoF
Figure 6.12: Religion or belief
E&W 2018 BSB SRA CLC CILEx REG CLSB MoF ICAEW Buddhist 0.4% 0.7% 1% - 0.5% 0.7% 0.5% 0.6%
Christian (all den.) 51.6% 50.5% 49% 53.5% 52% 47.1% 70.1% 49.6%
Hindu 1.7% 1.7% 3% 2.3% 1.1% 0.7% 2.2% 3.4%
Jewish 0.6% 4.1% 3% 0.2% 0.6% 1.4% 3% 1.9%
Muslim 5.7% 4.2% 10% 2.9% 3.3% 1.4% 1.3% 2.7%
Sikh 0.7% 1.3% 2% 1.3% 1.2% 0.7% 4% 0.9%
Other religion/belief 1.6% 1.5% 2% 0.4% - 0% 0.8% 4.4%
No religion/belief 37.8% 36% 30% 38.8% 41.2% 47.9% 18% 36.4%
Year data collected: 2019 BSB, CILEx Regulation, CLC, CLSB, ICAEW, SRA, 2017 IPReg, MoF The State of Legal Services 2020 § Evidence Compendium § 107
291. Compared to the population data there 295. Only CILEx Regulation and the Master of is quite wide variation on the proportion Faculties collects information on marriage of lawyers having any religion or belief and civil partnership. 52.6% of legal across the profession. There is a far executives and 78.4% of notaries are higher proportion of notaries who report married or in a civil partnership. being Christian, which may reflect this regulator’s ecclesiastical links. Aside from Pregnancy and maternity the notarial profession, there are typically 296. The LSB’s initial statutory guidance issued fewer lawyers of Christian faith and a in 2011 did not include reporting on higher proportion of lawyers reporting pregnancy and maternity, however this affiliation with other religions. was included in the updated guidance 292. One in ten of solicitors report being of published in 2017. Muslim faith, almost double the national 297. None of the regulators collect data on this workforce. The SRA report this has protected characteristic. increased steadily over the past five years (up five percentage points since 2014). 298. In 2016 a report by BEIS and the EHRC looking across the population said that 293. In relation to progression, partners and three in four mothers (77%) had a negative QCs are more likely to report affiliation to or possibly discriminatory experience a religion or belief. during pregnancy, maternity leave, and/ 221 Figure 6.13: Progression to senior roles or on return from maternity leave . The report revealed that scale of pregnancy BSB SRA DIFFERENT and maternity discrimination is not DIFFERENCE BETWEEN BETWEEN QC PARTNERS AND improving. AND NON QC SOLICITORS 299. CILEx, in a 2019 response222 to a BEIS Buddhist -0.2% 0% consultation on pregnancy and maternity Christian (all discrimination said that members 2.4% 4% denominations) highlighted instances in which they Hindu -0.7% 1% believed their employers strategically waited for statutory time limits to pass Jewish 6.5% 2% before making new mothers redundant, Muslim -3.1% 1% including being placed on garden leave Sikh -0.1% 1% in the build up to the redundancy. CILEx Other religion/ report that one of the most consistent -0.7% -1% belief themes legal executives reported was suggestions of employees/workers being No religion/belief -4% -9% treated poorly before, during and after their maternity leave. This included being Marriage and civil partnership ‘side-lined’, ‘pushed out’ and feeling as 294. The LSB’s initial statutory guidance issued though they were ‘being punished for in 2011 did not include reporting on being a mother.’ marriage and civil partnership, however this was included in our updated guidance published in 2017. 108 § The State of Legal Services 2020 § Evidence Compendium
Socio-economic background
300. There has been an increased focus on 302. Measures of socio-economic background social mobility, amidst evidence that are an important part of the effort to inequalities in society have widened. In understand and address barriers to social 2019, the Social Mobility Commission mobility. In 2018 a group involving a cross- reported that since 2015/16, ‘…social section of government, employers, experts mobility has stagnated over the last and regulators (including the SRA) was four years at virtually all stages from established with the aim of developing a birth to work’223. The Commission found commonly agreed set of socio-economic that those from better off backgrounds background measures to standardise were nearly 80% more likely than those the way socio-economic diversity is from working class backgrounds to get a understood in the workforce. The report226 professional job. Even when they did, they from the group recommended four were earning 17% less than their more measures to be commonly recorded by privileged colleagues224. employers: § parental qualifications 301. In 2018, in comprehensive report on the state of equality and human rights § parental occupation in Britain225, the Equality and Human § type of school attended Rights Commission (EHRC) concluded § eligibility for free school meals that Britain’s most at-risk groups of people are in danger of being forgotten 303. The LSB’s 2011 guidance recommended and becoming trapped in disadvantage. that regulator bodies focus on type It found prospects for disabled people, of school attended and whether legal some ethnic minorities, and children professionals were the first of their from poorer backgrounds have worsened generation to go to university, which the in many areas of life. Further, this data reflects. The 2017 guidance afforded inequality risks becoming entrenched for regulators more flexibility of approach on generations to come, creating a two-speed data collection. society. Attendance at a fee-paying school
304. Figure 6.14 provides the most recent data on the proportion of legal professionals who went to a UK independent/fee- paying school compared to the average composition of the UK population (7%)227.
305. As context, the gap in educational attainment in the UK for those who attend a fee-paying school is much higher than in comparative societies228. The State of Legal Services 2020 § Evidence Compendium § 109
Figure 6.14: Attendance at a fee-paying school
40% 37%
21%
11% 11% 10% 7%
SRA BSB CILEx Reg CLC IPReg ICAEW Mo CLSB
Year data collected: 2019 BSB, CILEx Regulation, CLC, CLSB, ICAEW, SRA, 2017 IPReg, MoF
306. Notaries and barristers have the highest reports that male staff and staff occupying proportion of individuals who went to fee- manager roles within their firms were paying schools, representing about four more likely to have attended a fee-paying in ten of these practitioners. One in five school. CILEx Regulation says its data solicitors went to this type of school. Only suggests that attending a fee-paying or a legal executives were less likely to have state-selective school is an advantage to gone to a fee-paying school than the wider joining CILEx at a higher grade and is a UK population. This may reflect the more benefit to progression through the CILEx flexible avenues to entry into this part of grades, within a firm and to attaining a the profession. share in ownership of a firm.
307. The BSB says figures for UK-schooled First generation to go to university barristers who attended an independent school are gradually trending downwards, 309. Figure 6.15 provides data on the falling by 1.6 percentage points since 2015. proportion of legal professionals who The SRA has reported a marginal change were the first generation within their in the ratio of lawyers who attended fee family to go to university, or who had a paying schools and state schools - for parent with a degree level qualification. every lawyer from a fee paying school 310. Access to university is a strong sign of in 2014, there were 2.6 lawyers who social mobility as graduates on average attended a state school, and in 2019 this earn more money over their lifetime, had increased to 2.7. spend less time in unemployment and 308. In relation to seniority, 23% of partners even live longer than their non university went to a fee-paying school compared to educated peers229. 19% of solicitors. The SRA notes that larger 311. On one estimate, 15% of the English firms and firms who mainly do corporate population born in 1990 were ‘first in the work have the lowest proportion of state family’ university graduates230. There has educated lawyers (46%), whereas 79% of been widening participation over time, lawyers in firms mainly doing criminal which means that it is increasingly unlikely work are state educated. At the Bar, 57% for successive generations to be the first of QCs attended a fee-paying school to attend university. compared to 35% of non-QCs. The CLC 110 § The State of Legal Services 2020 § Evidence Compendium
Figure 6.15: First generation to go to university
% FIRST IN FAMILY TO GO TO UNIVERSITY % PARENTS WITH DEGREE SRA - 51%
BSB 46.7% -
CLC - 28.1%
CILEX Regulation 54.4%
ICAEW 29.6% 26.1%
MoF 54.5% -
CLSB 35.1% -
Year data collected: 2019 BSB, CILEx Regulation, CLC, CLSB, ICAEW, SRA, 2017 MoF
312. Notaries are among the type of legal However, people from less traditional professional most likely to be the first backgrounds often viewed law as an generation within their family to go to elitist profession and one which is not university, although this may in part for them. Also, they were keen to further reflect the older age profile of this group their careers, but had been overlooked and widening participation in higher by employers who had promoted people education over time. This is also true for from backgrounds traditionally associated legal executives, although there was a high with legal careers and university educated number of blank responses. Quite a high individuals were especially favoured for proportion of barristers were the first in progression. their generation to go to university, and BSB data suggests that this is the case half 315. There is some evidence that type of of the latest cohort of pupils (although no university is a more reliable indicator of data was collected from 85% of pupils on admission into the profession. The BSB this question). report that of pupils who finished the BPTC between 2014 and 2017 35.6% 313. Other regulators approach this by asking went to Oxbridge for their undergraduate about parental occupation. Half of SRA degree and 38.9% went to another Russell regulated lawyers (51%) had parents with Group university. It has been reported that a degree level qualification, 27% with a contributing factor to the lack of diversity qualifications below degree level and in the legal profession is due to the bigger 16% with no formal qualifications. 40% of firms setting quotas of 40% for candidates SRA regulated lawyers had parents with from prestigious universities231. either traditional or modern professional occupations. In the CLC’s diversity figures, 316. More positively, many large law firms 28% of practitioners reported their have introduced social mobility initiatives. parents had a degree level qualification, The legal profession features highly in 36% had qualifications below degree level the Social Mobility Foundation’s league and 25% had no formal qualifications. A table of 75 employers doing the most quarter (26%) of staff in ICAEW probate to improve social mobility. The sector licenced firms reported that their parent has four spots in the top 10 – Baker or guardian completed a degree course or McKenzie is the top performing law firm, equivalent. with Linklaters and Bryan Cave Leighton Paisner also in the top ten. The Ministry 314. In qualitative responses to CILEx of Justice is the top scoring government Regulation’s diversity survey legal department in the league table. executives considered that social mobility had improved during recent years. The State of Legal Services 2020 § Evidence Compendium § 111
Cost of training 321. The Social Mobility Commission found workers from disadvantaged 317. Particularly for those facing the additional backgrounds are being left behind by expense of a pupillage or a training the apprenticeship system, including in contract after graduating from university, the law236. Since the introduction of the the high cost is a barrier to those from a apprenticeship levy, there has been a lower socio-economic background. There 36% decline in apprenticeship starts by is evidence that it is not uncommon people from disadvantaged backgrounds for barristers to qualify at a cost of between 2015/16 and 2017/18, compared £60,000 for their education, or possibly with 23% for others. Disadvantaged as high as £127,000 for those that take learners often undertook apprenticeships a conversion course after undertaking in low-paying subject areas, such as the a non-law undergraduate degree232. For health sector, rather than in law, business solicitors, the estimated level of debt is or engineering. approximately £50,000 at the point a training contract is entered into233. Childcare responsibilities
318. Not all areas of practice are well 322. Figure 6.16 provides data on the remunerated such that once working proportion of legal professionals with lawyers can quickly pay off student debt childcare responsibilities. ONS data and see a return on their investment. suggests that 36% of economically active There is typically a higher concentration of males and 39% of economically active BAME lawyers in lower remunerated areas females are a primary carer for one or of law, such as those funded by legal aid. more children237.
319. A key objective of recent reforms to 323. The ONS report that many parents make education and training is to improve changes to their work to help balance diversity by reducing the cost of qualifying work and family life. Based on data from 234 as a lawyer . Costs are much lower for the Labour Force Survey and Annual those taking alternative pathways into Population Survey, almost 3 in 10 working the profession. For example, the cost of mothers said they had reduced their hours training for a legal executive who qualifies to help with childcare, compared with 1 in after undertaking their entire study 20 fathers238. through the CILEX school would be around £10,200, or as a law graduate £30,000 324. School closures during the Covid-19 including the cost of the undergraduate pandemic provide an added dimension degree235. to this issue. As further relevant context, higher income earners are better able to Apprenticeships afford to access paid childcare. 320. Another route to the profession is through apprenticeships. These are aimed at people who leave school after completing their A levels or GCSEs, as well as people already working in paralegal and legal support roles. This route, while taking longer than a traditional training course as an undergraduate, allows apprentices to work as they study, which alleviates some of the cost of gaining the necessary qualifications. 112 § The State of Legal Services 2020 § Evidence Compendium
Figure 6.16: Lawyers with childcare 329. In a survey, the Next Hundred Years responsibilities project found that the Covid-19 pandemic % was having a disproportionate impact on women with childcare responsibilities. SRA 34% A third of respondents had childcare BSB 27% responsibilities, of whom 91% said that CLC – primary carer 36.3% they were taking on extra childcare responsibilities and were struggling to CILEx Regulation – primary carer 33.5% accommodate this alongside their work ICAEW – primary carer 20.6% responsibilities240. MoF – primary carer 23.3% Other caring responsibilities CLSB – primary carer 31% Year data collected: 2019 BSB, CILEx Regulation, CLC, CLSB, ICAEW, 330. Figure 6.17 provides data on the SRA, 2017 MoF proportion of legal professionals with caring responsibilities for people other 325. Between a quarter or third of legal than children. Estimates and statistics for professionals report having childcare the wider population vary depending on responsibilities; for some parts of the the specific measure. In ONS data, 11% profession this is significantly lower than adults report providing some regular the wider population. service or help for a sick, disabled, or elderly person not living with them during 326. For solicitors there is a marked difference 2017 to 2018. The Covid-19 pandemic has between partners and solicitors when changed this picture considerably. The size of the firm is considered. In firms that ONS report almost half (48%) of people have 50 plus partners, 42% of partners in the UK said that they provided help and 28% of solicitors had childcare or support to someone outside of their responsibilities. The lowest ratio was in household in the first month of lockdown those firms that mainly do corporate in April 2020. Of this total, one-third (32%) law where 37% of partners and 23% of were helping someone who they did not solicitors had childcare responsibilities. help before the pandemic; one-third (33%) 327. There is some variation in the proportion also reported giving more help to people 241 of barristers on the basis on seniority: they helped previously . 27.4% of non-QCs have childcare 331. Carers UK estimate that 72% of carers responsibilities compared to 22.5% of QCs. report suffering mental ill health as a This may be explained due to barristers result of caring242. typically becoming QCs at an age when they no longer have dependent children. Figure 6.17: Legal professionals with caring responsibilities for others 328. In the UK working population over half of mothers (56.2%) said they had made a 1-19 20-49 50 OR ANY HRS HRS MORE change to their employment for childcare reasons, compared with 22.4% of fathers. BSB 13.9% 11.5% 0.8% 0.6% Around 3 in 10 mothers (28.9%) and CLC 6% 3.8% 1.1% 1.1% fathers (30.9%) reported facing some CILEx Regulation 17.6% 14.5% 1.6% 1.5% sort of obstacle in fulfilling childcare CLSB 12.3% 11.7% 0% 0.6% responsibilities within their work life. ICAEW 13.2% 11.3% 1% 0.9% Long working hours, as often reported by legal professionals, was one of the main SRA 9% 7% 1% 1% obstacles to parents being able to fulfil MoF 17% 13.8% 1.6% 0.6% childcare responsibilities while working239. Year data collected: 2019 BSB, CILEx Regulation, CLC, CLSB, ICAEW, SRA, 2017 MoF The State of Legal Services 2020 § Evidence Compendium § 113
332. There is wide variation across the profession. Legal executive and notaries have the highest proportion of caring responsibilities, while licensed conveyancers and solicitors have the lowest.
333. QCs are 4.5 percentage points more likely to have caring responsibilities for others than non-QCs.
Mental health and wellbeing
334. The legal sector is often cited as 336. The charity LawCare saw an 8% rise in the challenging to work in, with long hours number of people seeking help in 2019 standard across the industry. A survey by compared to the previous year248. The Legal Week found that 44% of lawyers in most common problems cited were stress city law firms have suffered work-related (26%) and depression (12%). The number illnesses such as stress or depression243. of lawyers contacting the charity about However, issues of mental health span all bullying increased, accounting for 12% parts of the profession. More than one in of contacts. Two-thirds of callers to its ten solicitors have reported experiencing helpline were women and over half were a mental health condition within the trainees/pupils or had been qualified less last two years244. Recurring themes are than five years. the detrimental impact of a ‘long hours culture’, a fixation with billable hours and 337. Covid-19 is likely to increase incidence the pressure that comes from managing of wellbeing issues as professionals client expectations. worry about their futures and cope with a range of additional factors, such as 335. The Law Society’s Junior Lawyer Division social isolation and increasing commercial reported that a quarter of those surveyed pressures. In a LexisNexis bellwether in early 2019, had recently experienced survey on the pandemic249, respondents severe or extreme levels of work-related reported greater focus on wellbeing at stress. 48% reported experiencing mental work, but 36% said that overall morale and ill health, compared to 38% in 2018245. wellbeing had got worse under lockdown Similarly, despite 46% of respondents compared to 13% who said it had got reporting very or extremely high levels of better. The survey found differential job satisfaction, 90% considered stress impacts within the profession: while and mental wellbeing to be a significant younger lawyers had enjoyed spending issue at work. Over 60% articulated high more time with families and flexible levels of stress, with 1 in 4 experiencing working patterns, decision-makers were extreme or very high levels246. Only 45% ‘caught in a perfect storm of tougher of barristers surveyed in 2017 agreed trading conditions, needing to manage that they could achieve work/life balance, their firms remotely and having to get up compared to 50% in 2011247. to speed with new tech’.
114 § The State of Legal Services 2020 § Evidence Compendium
338. Lawcare, which offers legal professionals assistance, received 101 calls in July 2020 compared to 677 in the whole of 2019250. The top issues concerned not being permitted to work from home, financial issues due to furlough/pay cuts or lack of work, and worsening of existing mental health conditions. The support network City Mental Health Alliance UK reports that combined with normal stress the Covid-19 pandemic has increased the likelihood that mental health may be overlooked in the workplace, particularly due to the increased rate of working away from the office251. More positively, with enlightened attitudes, Covid-19 could lead to permanent changes in working practices, such as more flexible hours and home working, that could promote greater wellbeing.
339. The broader issue is that legal professionals suffer from significantly lower levels of psychological and psychosomatic health wellbeing than other professionals252 due to the way they work. A LexisNexis report253 identified a feeling that for many solicitors, stress is just an inevitable, perhaps necessary part of the profession. While this approach to work persists, and law firms’ business models rely on it, attempts to prioritise wellbeing as an integral part the business process will likely lag other sectors.
340. Some initiatives to address the wellbeing of legal professionals are in place or being implemented by many law firms. In 2015 half of the UK’s top law firms offered counselling services, as well as other services to reduce the stress of working long hours254. Other initiatives are seeking to redefine the expectations of clients, such as the Mindful Business Charter, supported by such firms as Pinsent Masons, Addleshaw Goddard, Clifford Chance and Hogan Lovells, which aim to ease the pressure clients can exert on law firms255. The State of Legal Services 2020 § Evidence Compendium § 115
Diversity of judiciary
341. The following section covers court and § Women had a marginally higher tribunal judges and non-legal members of recommendation rate from shortlisting tribunals and magistrates. Data on social but a lower recommendation rate mobility, disability, sexual orientation from application and religion has only been collected on § Women tended to have a better those seeking judicial appointments. All relative success rate for tribunal data in this section are drawn from the recruitment exercises, compared to Judicial Diversity Forum’s (JDF) report on courts the diversity of the judiciary published in § For roles that required 7 years of legal September 2020256. The LSB is a member experience, the number of women of the JDF. among applicants was lower, which is not surprising given the available pool 342. The JDF report provides, data which offers of candidates in the profession with a window into factors which impact upon longer post qualification experience judicial diversity. Overall, the report shows a complex picture, where a range § 26% of judges in more senior posts of factors and influences interact. The (High Court and above) were women. JDF has also published a summary of the The highest level of representation for actions that its members are undertaking women was among the District Judges to help increase judicial diversity. In (County Courts) at 44% addition, the Judiciary plans to publish a Women and judicial progression diversity strategy later this year. 345. The proportion of new female entrants Gender to the judiciary during 2019-20 was lower than those in post for court judges and 343. Although the proportion of women broadly similar for tribunal judges. In continues to increase gradually, women 2019-20 most of the posted filled by new remain under-represented in judicial entrants was for Recorders. roles. This is particularly the case in the courts where 32% of all judges, and 26% of 346. Among judges already holding a judicial those in more senior roles (High Court and role and who were promoted during 2019- above) are women. This compares with 20, 44% in courts and 47% in tribunals 47% female judges in tribunals. were women.
344. Women accounted for 50% of applicants 347. A higher proportion of leavers from the to judicial appointments. 45% of those judiciary were male compared to those in were shortlisted, of whom 45% were post, which reflects the higher proportion recommended for appointment. This of older judges that are male. difference is not statistically significant. Compared to men: § There was no disparity in recommendations within the eligible pool, though success rates for women were an estimated 4% lower than for men 116 § The State of Legal Services 2020 § Evidence Compendium
Ethnicity 355. Overall, those aged 50 and over accounted for 35% of applicants, 34% 348. The proportion of judges who identify as of those shortlisted and 29% of those BAME has increased in recent years, but recommended for appointment. remains lower for court appointments compared to tribunals, particularly at Age and judicial progression senior levels (4% for High Court and above, 356. At 1 April 2020, around three-quarters compared with 8% of all court and 12% of of judges were aged 50 and over – 76% all tribunal judges). BAME candidates were in courts, and 72% in tribunals. In both 25% of applicants, 14% of those shortlisted courts and tribunals, 40% of judges were and only 12% of those recommended for aged 60 and over. appointment. 357. For judges in both courts and tribunals, 349. The proportion of BAME court judges around a quarter of new entrants to the varies by region, from 10% in London and judiciary in 2019-20 were aged under 50. the Midlands, to 3% in Wales. Together, Almost all those leaving the judiciary were nearly 70% of BAME court judges are in aged 50 and over. London and the Midlands. This is likely due to the variations in ethnicity by region. Professional background
350. BAME candidates were more successful 358. Non-barristers represented 32% of all than white candidates for roles requiring court judges and 63% of all tribunal judges judicial experience but less successful (a decrease for courts and tribunals, for roles requiring 5 years’ or more legal compared with previous years). The data experience. also shows that recommendation rates from application were significantly lower BAME and judicial progression for solicitor applicants compared to 351. The proportion of BAME individuals barristers, across all legal exercises. The entering the judiciary was higher than last 18 months has seen the first female those in post as at 1 April 2020 for Chartered Legal Executive recommended tribunals, but lower for the courts. for appointment, but overall legal executives form only a very small number 352. BAME individuals constituted 9% of of judicial appointments257. promotions in the courts and 11% of promotions in tribunals. 359. For court and tribunal judges, in 2019-20, the proportion of non-barristers leaving 353. Conversely, a lower proportion of judges the judiciary was higher than of those in leaving the judiciary – who are older post and those entering. This accounts for on average – in 2019-20 were BAME a decrease (since 2019) in the proportion compared to those in post. of non-barristers in post among court judges. Age 360. Among tribunal judges, half (50%) of 354. On average, applicants for judicial roles those promoted were from non-barrister have far greater than the minimum levels backgrounds – this compares with 43% of of legal experience required. 76% of court promotions for court judges. judges and 72% of tribunal judges were aged 50 and over, with 40% aged 60 and over in both courts and tribunals. Older age is associated with lower gender and ethnic diversity. The State of Legal Services 2020 § Evidence Compendium § 117
Other diversity characteristics § Sexual orientation: across all legal and non-legal exercises combined, 361. For other diversity characteristics data candidates who were lesbian, gay or was only collected for appointments and bisexual had a lower representation selections. but a higher recommendation § Disability: across all legal exercises, rate from application (16%) than candidates with a disability had a heterosexual candidates (11%) similar recommendation rate from § Religion: across all legal and non- application as candidates without a legal exercises combined, candidates disability (both 11%) who declared their religion as § Social mobility: across all legal Church of England accounted for exercises, candidates who attended the largest share of applications a UK state school had a lower and recommendations, while those recommendation rate from application Jewish or of no religion had the (11%) compared to those who highest recommendation rates from attended a UK independent or fee- application (15%) paying school (14%) 7. A SUCCESSFUL AND SUSTAINABLE PROFESSION The State of Legal Services 2020 § Evidence Compendium § 119
Summary
Economic performance § Investors perceive legal services as a ‘sleepy’ market, but greater investor § There are signs that the sector is appetite has been detected, particularly recovering from Covid-19 more strongly in lawtech than expected, but the long-term impact is hard to assess and some parts of the § The way that many law firms are sector are recovering less strongly, if at financed is changing. Six firms have all. While Covid-19 is creating more legal listed while private equity and litigation need, a growing proportion of people finance are playing a more prominent cannot afford to pay for lawyers role § Over the last decade the sector has Cost of regulation performed strongly in economic terms. However, the picture is uneven with § Practising certificate fees have generally most of the growth driven by the been stable over the last ten years, corporate sector. Prior to Covid-19 the although all regulators apart from the market was increasingly divided along SRA have increased their budgets different tiers with some segments § There is a lack of reliable data on doing very well and other parts compliance costs, but there is concern struggling about professional indemnity insurance costs where the market is hardening Legal aid sector § Covid-19 is adding to existing pressures International standing of jurisdiction on the legal aid sector and may be § Internationally, exports have risen having disproportionate impacts on strongly, the UK has retained its position young lawyers and BAME lawyers as dispute resolution jurisdiction of § The impact of the LASPO reforms on choice and is fast becoming a lawtech the sustainability of the profession in hub both the civil and criminal arenas is § The impact of the UK’s exit from the EU contested. The government has recently is unknown as negotiations on a future commenced significant policy reviews in trading relationship continue. There are both areas concerns around mutual recognition of qualifications, cross-border practice A changing market rights and access to a talented § ABS have trebled in the last five years, workforce, but there is also confidence accounting for around 1 in 10 entities. about the likely resilience of the market This structure has been used by not-for- § Market liberalisation and a move profits as well as commercial ventures. towards independent regulation § There has been a shift away from the is increasingly evident in overseas partnership model to incorporatisation. jurisdictions, including in some parts of The market has seen mergers and the United States consolidation, which is expected to continue 120 § The State of Legal Services 2020 § Evidence Compendium
Snapshot of sector
Individual practitioners
362. The number of lawyers authorised to 363. An alternative measure of employment is undertake legal activities covered by data by ONS using the Annual Population the Legal Services Act 2007 (authorised Survey to estimate numbers of people in persons) increased from 142,580 in legal occupations in 2018/19. This shows 2010/11 to 176,650 in 2019/20. This that while most legal professionals in increase of 24% compares to population England and Wales – both authorised growth in England and Wales of 6% over persons and other types of legal the same period. Put another way, there professional – work in law firms (152,000), was one lawyer for every 334 people in a similar number work outside of law firms 2018 compared to 390 in 2010. The largest (131,000). These will be working as general growth came from licensed conveyancers counsel or supporting roles in commercial (38%) and solicitors (29%). However, there firms or government or not for profit are fewer legal executives and notaries organisations. There are also an estimated than in the past (6% fewer notaries in 2018 68,000 people working in non-legal roles compared to 2010, and 3% fewer legal in law firms. This totals to an estimated executives since 2010) 258. 351,000 people working in legal services in England and Wales.
Figure 7.1: Number of individual practitioners over time
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 /11 /12 /13 /14 /15 /16 /17 /18 /19 /20 BSB 15,104 15,157 15,309 15,204 15,716 15,899 16,045 16,435 16,598 16,982
CILEx 7,391 7,409 7,467 7,907 7,947 7,930 7,848 7,405 7,587 7,156 Reg
CLSB 246 270 411 565 563 560 598 651 708 733
CLC 989 1,021 1,115 1,071 1,177 1,222 1,262 1,283 1,368 1,404
MoF 827 870 845 858 812 790 794 784 775
ICAEW 92 265 303 319
IPREG 2,536 2,570 2,307 2,384 2,809 2,824 2,932 3,017 2,927 3,102
SRA 115,487 117,869 121,859 128,710 134,447 138,243 142,109 145,059 146,050 146,913
ACCA 11 41
Total 142,580 145,166 149,313 156,699 163,471 167,468 171,680 174,899 176,327 176,650
Note: Reporting year start and end dates vary between regulators, so the column headings are approximate. The State of Legal Services 2020 § Evidence Compendium § 121
Figure 7.2: Estimated legal professionals in employment in England and Wales259
Legal Non-Legal Legal professionals professionals professionals in non-law in non-law in law firms: firms: firms: 152k 131k 68k
Entities
364. Numbers of regulated entities have had dropped to 2,189 and only 21% of the remained fairly constant over the last ten entities regulated by SRA. years to 2020, albeit with a dip in 2013/14. Most entities are regulated by the SRA. 365. Removing sole practitioners from the total Of these are a large proportion are sole number of entities, the number of other practitioners. In December 2010, the SRA types of entities increased from 7,233 in regulated 3,771 sole practitioner entities, 2010/11 to 8,884 in 2019/20. Incorporated which accounted for 35% of the entities companies increased from 2,079 (19%) to they regulated. By December 2019 this 4,951 (48%) over the same period.
Figure 7.3: Regulated entities by regulator over time
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 /11 /12 /13 /14 /15 /16 /17 /18 /19 /20 BSB 0 0 0 0 0 48 67 89 108 130
CLC 215 212 216 217 214 226 237 232 226 228
CILEx Reg 0 0 0 0 0 2 6 12 14 18
CLSB
ICAEW 0 0 0 0 0 162 241 295 306 316
IPREG - 181 184 200 218 223 225 229 227 224
MoF
SRA 10,696 10,917 10,976 10,724 10,444 10,336 10,415 10,420 10,407 10,341
Total 10,911 11,310 11,376 11,141 10,876 10,997 11,190 11,277 11,288 11,257
Total minus SRA sole 7,233 7,731 7,757 7,804 7,729 8,005 7,982 8,175 8,348 8,884 practitioners
Note: CLSB and the Faculty Office do not regulate entities. Reporting year start and end dates vary between regulators, so the column headings and totals are approximate. 122 § The State of Legal Services 2020 § Evidence Compendium
366. ONS data shows that between 2008 and 370. Firms themselves are recognising the 2018 the number of UK businesses in the issue. A 2019 survey of law firms found sector increased by 15%, from 29,092 to 71% thought that a Limited Liability 33,519. This compares to a 25% increase Partnership structure was not ideal from 1,976,922 to 2,480,645 for all for their business and a fifth (21%) had businesses in the non-financial sectors moved away from it. Another 18% said over the same period260. that being an LLP was a barrier to growing their business264. A 2019 roundtable event 367. The consultancy Jomati list nearly 150 with senior representatives from large mergers in the top 100 UK law firms law firms, hosted by Travelers Insurers, between 2011 and 2020261. The trend recognised that while the sector had of market consolidation is expected to resisted change, firms must now adapt or continue. risk losing clients.
Threat to the partnership model 371. The same roundtable recognised that law firms change working practices on a 368. From small firms on the high street to the monthly or annual basis while lawtech magic circle, the partnership model has start ups can change daily265. Meanwhile, been the traditional means of business Thomson Reuter’s State of the Legal ownership. In theory it guarantees Market in the UK 2020 report noted that good management and planning as law firms underinvesting in technology the directors (partners) are financially risk falling behind both their competitors committed and it is in their interests and their own clients266. The 2019 PwC Law to plan and invest to ensure continued Firms survey found a similar picture. While business success and personal prosperity. 56% of the top 100 firms had completed 369. Yet there is increasing thought, globally, (or had underway) ‘foundation’ IT projects that the partnership model is an outdated (up from 42% the year before), spending form of business ownership, where on IT as a percentage of fee income was 267 profit per equity partner skews business lower than in other sectors . decisions and gaining consensus across all partners can slow decision-making262. The results are dissatisfied customers and dissatisfied fee earners, with the former feeling that they are paying more without getting the service they want and the latter pressured into prioritising work over life, to work towards the equity partner status they may never achieve263. Talent retention has become an increasing challenge. The State of Legal Services 2020 § Evidence Compendium § 123
Alternative business structures and external investment
372. Between Q2 2015 and Q1 2020 the licenses were issued by the SRA and about number of ABS licenses almost trebled, a fifth by ICAEW. from 519 to 1,413. Around two-thirds of
Figure 7.4: Growth in Alternative Business Structures in England and Wales*
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0 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20
SRA CLC ICAEW IPREG (estimates BSB
*Licensed ABS (licenses issues minus licenses ceased or revoked), includes estimates from IPREG
373. All the ‘big four’ global accountancy firms startups, outsourcing companies and have set up ABS. A survey of 517 decision unregulated businesses, that have grown makers in law firms across the UK, Canada in number and influence. Estimated and the US in summer 2018 found 23% revenue for ALSPs increased from of large firms and 21% of midsize firms US$8.4bn in 2015 to US$10.7bn in had lost business to one of the big four 2017 and are estimated to take 4.4% of in the past year268. It is unclear whether client budgets with more than a third of recommendations by the CMA for an corporations now using ALSPs270. operational, if not structural split, between the big four’s audit and other functions 375. ABS have been used as vehicles by not for will, if implemented, have an impact on profit organisations. Local government their role in the legal services market269. councils have established ABS as ‘bolt-ons’ or spin offs to share costs or generate 374. In the corporate sphere, the big four are revenue from their legal services. For one type of alternative legal services example, Kent County Council transferred provider (ALSP), also including tech its in-house legal team to Invicta law, an 124 § The State of Legal Services 2020 § Evidence Compendium
ABS it started in 2017271. Universities Financing developments have used ABS to offer law students real 377. Six law firms are now trading on the life work experience. Nottingham Trent London Stock Exchange (LSE) after University has operated an ABS licensed converting to ABS. In 2018 the fifth law Legal Advice Centre since 2015, recovering firm (Knights) listed on the LSE Alternative over £3m in benefits and compensation272. Investment Market after Gateley became In July 2019, Staying Put, a domestic the first in June 2015276. In March 2019 violence charity set up an ABS to provide DWF became the first law firm to list on legal services for people who are not the LSE Main Market277. eligible for legal aid but cannot afford to pay for a solicitor273. 378. Private equity appears to have grown. For example, in February 2019, Palamon 376. ABS are designed to enable investment Capital Partners acquired My Home Move in them by non-lawyers. LSB research in – owner of Premier Property Lawyers 2017 found that 52% of the ABS surveyed and Advantage Property Lawyers – to had invested in their business since create what was then by far the largest obtaining their license and a further conveyancing business in the country in 14% were planning to do so274. These combination with its existing investment, investments were mainly to hire more the Simplify Group278. staff, or for marketing or IT. The most frequent source of funding came from 379. Litigation funders have become a growing profits or cash reserves and only 12% had presence. An estimate of litigation used external finance (although only 6% funding available over the year to March identified regulatory barriers to accessing 2018 was £1.3bn, an annual increase of finance). From an investor perspective, the 31%279. Litigation funders typically finance legal sector was seen a ‘sleepy’ market commercial cases of high value, but they and neither investors nor firms looking for have backed high-profile class actions and external investment were used to working are starting to take on lower value claims. with each other. Also, ABS would not present financial information to investors in a way that investors would expect and did not appear to have a full grasp of the value of their businesses. Nevertheless, since then greater investor appetite has been detected on the back of regulatory change bedding down, particularly into lawtech275. The State of Legal Services 2020 § Evidence Compendium § 125
Economic health of sector
Growth – pre-Covid-19 of £100,500 per employee was almost double the UK average, higher than most 380. On a long-term view the sector has other professions, and second only to performed strongly in economic terms, management consultancy. with turnover doubling in the last 20 years from £15.9bn in 1998 to £35.2bn in 2018 382. Some parts of the sector have grown (Figure 7.5)280. It recovered well from the more strongly than others. Growth has 2008 financial crash, growing faster than been strongest in the corporate sector, the overall economy since then. which predominates the work of the largest law firms. In 2019, the top ten law 381. The overall economic contribution of the firms had a combined turnover of £14.5 sector is likely to be considerably larger billion, representing over 40% of the than these headline figures. Analysis whole sector282. The strong performance by KPMG281 commissioned by the Law of the corporate sector has benefited the Society, suggested that legal services economy as a whole and boosted the were worth nearly £60bn gross value international standing of our jurisdiction. added (GVA) to the UK economy in 2018 However, the high level of unmet legal and accounted for 1.7% of the total need among individual consumers and UK labour force. It also estimated that small businesses that has persisted during productivity in the legal services sector the years since the Legal Services Act is rose by 17% in the five years from 2013 to evidence of substantial latent demand. 2018. KPMG said that productivity levels
Figure 7.5: UK legal services turnover (£billions)
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£0
201820172016201520142013201220112010200920082007200620052004200320022001200019991998 126 § The State of Legal Services 2020 § Evidence Compendium
383. Growth in the sector has mainly been 385. Despite the political and economic driven by solicitors’ firms. Turnover of SRA ‘headwinds’ associated with Brexit, law registered firms increased from £21.9 firms appear to have performed well in billion in 2010/11 (adjusted for 2020 the period to April 2019. A survey of 148 prices) to £26.9 billion in 2019/20 – an law firms by the Royal Bank of Scotland increase of 17%. In 2020, 30% of turnover Group found the median profit per equity was in commercial corporate work and a partner was £20,000 higher than the year further 16% in litigation283. before. This increase was mainly driven by an increase in volume, though fees 384. Experts interviewed for this report had increased by an average of 4%. It described a picture of a market also notes increasing competition from increasingly divided along different tiers. ‘traditional firms and new legal businesses’, In the top tier, city law firms have never although only 22% of the firms surveyed been stronger, and the experts were saw increasing numbers of ABS to be bullish about their prospects. However, at a threat to them284. Another survey by the bottom end are legal aid firms in areas accountancy firm MHA MacIntyre Hudson like family and criminal work which the found increasing fee income in the rest experts saw as struggling. of 2019 by around 2 to 3% and more partners and fee earners285.
Figure 7.6: Percentage of turnover of SRA registered firms by area of law, April 2020
Litigation Other 15.7% Commercial Corporate Non Listed Companies 15.4% Commercial Corporate Listed Companies 14.7% Personal Injury 7.8% Property Commercial 7.7% Property Residential 6.3% Non Litigation Other 4% Employment 3.8% Arbitration and Alternative Dispute Resolution 3.2% Family Matrimonial 3% Wills Trusts Tax Planning 2.9% Criminal 2.9% Probate Estate Administration 2.7% Financial Advice Regulated SRA 2.6% Intellectual Property 1.6% Landlord Tenant 1.6% Children 1.4% Immigration 1.2% Planning 0.5% Consumer 0.3% Discrimination Civil Liberties Human Rights 0.2% Mental Health 0.2% Social Welfare 0.1% The State of Legal Services 2020 § Evidence Compendium § 127
The impact of Covid-19
386. ONS data shows that legal services Loans and furloughing arrangements are revenues in June 2020 were down 3.6% not broken down to a level showing the from the same month last year, generating take up among legal services firms. Survey £2.79bn. There is evidence that the evidence suggests that large numbers of sector is rebounding more strongly than law firms have taken advantage of these expected, since revenues for June were schemes, while some firms have closed 19.5% up on May. The whole economy departments or made redundancies287. grew by 8.7% in the same period, although The open question is whether firms the overall services sector, including legal, impacted the worst by Covid-19 will grew by 24.5%. However, the long-term survive once these arrangements end. impact of Covid-19 on the sector is hard to assess and, as we describe below, this may 390. The Bar Council has said that many self- vary considerably in different parts of the employed barristers are vulnerable since sector. they cannot furlough and fall outside the thresholds for self-employed income help Insolvencies and support. Further, it has highlighted that newly qualified barristers face 387. The Insolvency Service publishes quarterly particularly acute pressures. More recently, data on company insolvencies for England barristers are likely to be eligible for the and Wales, which includes the category of Bounce-Back loan scheme (BBLS). ‘legal activities’. This shows a small number of insolvencies and a stable picture over time, but with a spike in the last two years that may suggest a more challenging recent trading environment for law firms during a period when all company insolvencies in the economy fell slightly. 19 insolvencies were recorded in Q2 2020, following the same pattern for this period in the previous two years, suggesting that Covid-19 has had limited impact to date on the immediate survival of firms.
388. The SRA has reported that over the 12 months to end of March 2020, 620 Recognised Sole Practitioners, Recognised Bodies and ABS closed. Just over half of this total ceased practising, whereas one-fifth had merged and another fifth changed their status286.
389. Many small, high-street law firms will have experienced a sudden fall in demand in their core areas of activity, such as conveyancing and crime. Official statistics on Coronavirus Business Interruption 128 § The State of Legal Services 2020 § Evidence Compendium
Figure 7.7: Total annual company insolvencies - legal activities
70
60
50
40
30
20
10
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
The Insolvency Service, Quarterly company insolvencies by industry (SIC 2007) Q2 2020.
391. LexisNexis has developed a Gross Legal 392. The LexisNexis report divides 14 Product (GLP) index, which measures a market segments into five categories of set of influencing factors and activities to performance: estimate demand in the legal market288. § Accelerating – employment; The model indicates that underlying commercial; tax demand for legal services grew by just § Rebounding – financial services; 1% since 2017, in contrast to revenues restructuring and insolvency increasing by more than 10% over the same period. Its analysis is that the § Insulated – competition; risk and immediate impact of Covid-19 may not compliance; family; private client be too dramatic, and certain firms with § Slowing – immigration; property larger practices in counter-cyclical practice § Challenging – crime; dispute areas will be experiencing big increases resolution; litigation in demand (and revenue). Further, it suggests that even some practice areas 393. A report by the Justice Committee, with weaker longer-term prospects are largely drawing on evidence from likely to see an uptick in work over the representative bodies, called on the next few months. However, it also warns government to support lawyers now that beyond the immediate fallout, large in case they are not there when justice firms which have a heavy exposure to is needed289. It expressed concern that practice areas hit by Covid-19 face tougher Covid-19 restrictions on the justice system long-term prospects. would disproportionately affect the incomes of BAME or state-educated legal professionals, and reduce their ability or desire to enter and work in the courts and tribunals system. The State of Legal Services 2020 § Evidence Compendium § 129
394. Representative bodies have conducted 395. Therefore, the evidence is both limited and membership surveys to seek to mixed. Aside from indicators of demand, understand the current and future likely more generally, those firms with capital to impacts on the profession. While these invest in technology may be agile enough offer valuable insights, they should be to recover from Covid-19, but many small treated with caution due to the self- law firms lack the finance to make these selecting nature of the sample. Other investments. Further, while there is likely business confidence surveys have found to be an increase in legal needs in many a more optimistic view of the future (see areas of law, it is far less certain that box). consumers will have the financial means to obtain professional help.
SURVEYS ON THE IMPACT OF COVID-19
A survey by the Bar Council in July 2020 § A survey of larger domestic law firms found: in March 2020 found that private client, residential conveyancing, commercial § 38% of criminal barristers are uncertain property and dispute resolution were whether they will still be practising law the highest areas of concern. Aspects of in 2021; 16% of self-employed barristers the regulatory regime that potentially actively want to leave the Bar as a result inhibited firms’ operations related of the pandemic (for 20 years, this has to legislative requirements, such as been no more than 4% yearly) execution of documents, rather than § Interruption to court work persists: legal services regulation the number of hours worked by self- employed barristers has halved and fee A LexisNexis Bellwether survey found: income has reduced by 59% § 85% agreed that Covid-19 was the § Publicly funded barristers have seen a biggest challenge facing their business 69% reduction in fee income § 49% anticipated a short-term decrease § Just 22% of barristers 0-2 years in in demand for their services and 44% practice will survive more than a year are worried that they do not have the without financial help. 34% of those cash flow to meet their current costs. 0-2 years in practice were already However, 33% thought demand would experiencing financial hardship in April. increase in the short-term and 30% in That has now risen to 42% the long-term § 78% were quite or very confident about A Law Society has surveyed members the future, down from 91% in 2019 but based on size of firm: similar in 81% in the 2018 wave of the § A survey of small high street firms survey in May 2020 found that 63% of sole § 37% said they were growing compared practitioners and 71% of firms with four to 57% in 2019 partners may have to close within the next six months § 48% feel that, while Covid-19 is a critical threat, its impact can be mitigated with an effective response. 130 § The State of Legal Services 2020 § Evidence Compendium
Legal aid sector
396. Covid-19 has added to existing Civil legal aid pressures on the legal aid sector. The 397. In relation to civil work, the impact of Justice Committee highlighted that the the LASPO reforms on the sustainability Covid-19 restrictions have hit hardest on of the profession is contested. Since young solicitors and barristers, and on LASPO the number of legal aid firms BAME lawyers, all of whom tend to be and not-for-profit agencies offering disproportionately represented in this social welfare law advice has fallen by sector. Its report quoted provisional Legal a third290. The Law Society has warned Aid Agency statistics that provide evidence of ‘sectoral collapse’ if three problems of a reduction in legally aided work facing practitioners go unaddressed: following the lockdown measures: cashflow implications of Covid-19; loss Civil legal aid of income; and the ‘underlying crisis of sustainability’. However, in its Post § 34% decrease in legal help new matter Implementation Review prior to Covid-19, starts (down from 10,200 per month to the Ministry of Justice concluded that while 6,700); the number of providers doing legally § no Housing Possession Court Duty aided civil work fell by a third overall and Scheme starts (down from 2,300 per total income reduced by 25% since 2012- month) 13, the average income per civil legal aid § 94% decrease in the number of provider increased by 11%291. Overall, it Housing Possession Court Duty concluded that the market is sustainable Scheme cases closed (down from at present, but data is poor and there are 2,600 per month to 150) areas where government needs to look at § 16% decrease in civil representation remuneration further. applications (down from 10,300 to 8,700). Family applications decreased 398. The Ministry of Justice is currently carrying by 13%, whilst the 34% in non-family out a review of civil legal aid, which is due applications was driven mainly by the to report in spring 2021. It will examine: fall in housing applications. threshold changes to the legal aid means test; the sustainability of the civil legal aid Criminal legal aid system, including fees; the availability of § 41% decrease in police station early legal support and advice; and how attendance (down from 44,400 per administrative burdens can be reduced. month to 26,200) Criminal legal aid § 45% decrease in applications received for representation in the Crown Courts 399. In relation to crime, the Bar Council (down from 7,500 per month to 4,100) describe the current rates of pay for § 42% decrease in applications received defence advocates and solicitors as for representation in the magistrates’ inadequate, stating that Covid-19 is courts (down from 17,500 per month exacerbating the existing difficulties to 10,200) caused by the remuneration scheme. In a membership survey in March 2020, 67% of criminal chambers said they could not survive three to six months without financial aid and 90% could not survive The State of Legal Services 2020 § Evidence Compendium § 131
12 months, without additional financial being deterred from entering criminal support. The Bar Council has called for a defence work, such that in 5 to 10 years’ legal aid payments structure that ensures time there could be insufficient criminal the sustainability of the profession292. duty solicitors in many regions of England and Wales. 400. Prior to Covid-19, criminal barristers took the unprecedented step of taking 402. The LASPO Post Implementation Review industrial action and further threatened challenged claims that the criminal actions were only averted following legal aid market is not sustainable but negotiations with government. In its acknowledged concerns that lowered response to a consultation on the remuneration and high levels of tuition Criminal Legal aid Review, the Criminal Bar fee debt could be putting off the next Association suggested that ‘The financial generation of legal aid lawyers295. However, pressures caused by Covid-19, together its data showed that average income per with the cumulative effect of deleterious criminal legal aid provider had remained policies is without exaggeration, the at a similar level since 2012-13, as the greatest threat the Criminal Bar has ever number of providers fell at a similar faced’293. rate to the reduction in income (14%). It pointed to the finding of the Jeffrey Review 401. Similar concerns have been expressed that the market was ‘oversupplied’. about the future of criminal law solicitor practices. A report by Otterburn 403. In August 2020, the Lord Chancellor Consulting for the Law Society highlighted announced plans for an independent that falling volumes of work would review of the criminal legal aid system in challenge the financial viability of criminal its entirety, which will consider working legal aid practices.294 In May 2018 the practices and market incentives. He Society published a heatmap indicating also announced announced ‘quick wins’, that the average age of duty solicitors was including fee increases for criminal legal 47 and argued that young lawyers were aid lawyers, at a cost of £51m per year.
Figure 7.8: Number of Legal aid solicitors’ firms across all civil areas over time
2,830 2,736 2,676
2,335
2,026 1,796 1,738 1,716 1,641
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 132 § The State of Legal Services 2020 § Evidence Compendium
Cost of regulation
404. Our starting point is that regulators should 406. These are considered in turn below. have sufficient resources to carry out their role, which they should deploy efficiently Direct costs – the PCF and effectively. Generally, over time we 407. For practitioners and firms, the annual would expect the trajectory of their costs PCF is perhaps the most visible cost to reduce, or at least stabilise, but in some of regulation. For the purposes of this cases, an increase may be needed. Equally, report, we have divided the PCF into three it is not in the public interest for regulation components: to be under-funded since this could jeopardise consumer protection and the § The costs of the frontline regulatory regulatory objectives more widely. body § Where applicable, the representative 405. When considering the cost of regulation it costs of the approved regulator is useful to distinguish between: eligible under the permitted purposes § Direct costs – the annual practising regime in s51 of the Act certificate fee (PCF) paid by individuals § The costs of external bodies including and entities to their regulatory body. the LSB, Legal Ombudsman and This includes the costs of external OPBAS296 bodies such as the LSB and Legal Ombudsman and so-called ‘permitted 408. Many of the regulators are listed by the purposes’ activities HMRC so that individual practitioners can partially offset the cost of their annual § Compliance costs – one-off and PCF against their tax return297. It is also ongoing costs required to comply with common for firms to pay their employees’ legislative or regulatory requirements, PCF. This means that overall, the burden such as professional indemnity of the cost of regulation is spread across insurance taxpayers and consumers, rather than borne by practitioners alone.
409. Figure 7.9 charts the real terms relative changes in PCF for each regulator over time298. Generally the level of PCF has remained stable: since 2015/16 those regulators that have increased the fee have done so by less than 8%, while those that have reduced the fee have done so by less than 11%. The State of Legal Services 2020 § Evidence Compendium § 133
Figure 7.9: Percentage comparison of practising certificate fees over time (2018/19 = 100%, adjusted for inflation)
210%
200%
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100%
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2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19
SRA CLC BSB CILEx IPREG IPREG Mo
410. For 2020-21, the estimated amounts each 411. The equivalent figure in 2010-11 was regulator will collect through their PCF is £142.1m representing a fall of £17.4m, set out in fig 7.10 below. The combined or 12%. This is despite the number of total is £124.7m equating to just over £700 authorised persons increasing by over per individual. £124.7m is a considerable 31,000 and an expansion of the regulatory figure, though as a proportion of legal landscape (two new regulators and some services turnover it is more modest – existing regulators expanding the scope representing 0.35% of £35.2bn turnover in of the activities and business structures 2018. they regulate). However, this is explained by fall of £28.5m in the SRA/TLS income over the period. In fact, the costs of all the other regulators that existed in 2010-11 increased over the decade, between 16% and 129%. 134 § The State of Legal Services 2020 § Evidence Compendium
Figure 7.10: Estimated income from total practising certificate fees for 2020
REPRESENTATIVE NO. PERMITTED EXTERNAL AUTHORISED PURPOSES BODIES PERSONS REGULATOR PCF TOTAL ELEMENT % ELEMENT* % (2019) SRA/TLS £102.5m £31.5m 30.7% £16.9m 16.5% 146,050 BSB/GCB £15.4m £3.9m 25.5% £844,000 5.5% 16,598 CILEx Reg/ £2.4m £954,524 39.6% £148,500 6.2% 7,587 CILEx CLC £2.3m N/A N/A £464,601 20.1% 1,368 CLSB £181,500 N/A N/A £19,000 10.5% 708 ICAEW £484,000 N/A N/A £6,292 1.3% 303 IPReg/ £932,823 N/A N/A £74,713 8% 2,810 CITMA/CIPA MoF £428,626 N/A N/A £25,963 6.1% 775 ACCA** £13,560 N/A N/A £24,000 177% 43 Total £124.7m £36.4m 29.2% £17m 14.8% 176,242
* All regulators contribute towards the costs of the LSB and Legal Ombudsman. Other bodies will vary by regulator including disciplinary tribunals and OPBAS. ** ACCA running a deficit for legal services regulation and costs absorbed by the wider business Source: PCF applications and decision letters
412. For solicitors, barristers and legal Compliance costs executives the PCF also funds representative permitted purposes. These 414. There is no reliable recent data on the full costs represent between 30-40% of the range of law firms’ compliance costs. In a latest PCF applications. For solicitors, study commissioned by LSB in 2015, the the PCF includes a compulsory fee for businesses participating reported that the purely representative activities, whereas total cost of regulation as a proportion of such payments are optional for other total practice costs was between 15% and professionals. The proportion of the PCF 23%299. used to fund representative permitted 415. The study focused on the incremental purposes paid by solicitors has increased costs of regulation – costs that are significantly over time from 19.7% in incurred solely to comply with legal 2010 to 30.7% in 2020. By contrast, the services regulation and that do not serve proportion paid by barristers fell from 55% any other business or wider regulatory to 25.5% over the same period. purpose. In other words, the methodology 413. The LSB is currently conducting a review excluded costs where, if the legal services to ensure that the PCF process is linked to regulation did not exist, businesses would regulatory performance and forms part still incur them due to other legislative of a coherent and joined up approach to requirements or for commercial reasons. regulation. The review will also allow us 416. The highest areas of incremental costs to consider how we ensure that the PCF were reported as being professional approval process is focussed on permitted indemnity insurance, professional purposes activities which support the development and information regulatory objectives. requirements from the regulator. The State of Legal Services 2020 § Evidence Compendium § 135
417. There is data available from the Law revealed non-US PI was the second worst Society’s survey of solicitors’ firms on performing insurance class in terms of PII renewal costs conducted annually profitability302. In the absence of survey between 2014-15 and 2017-18 (Figure data, indications are that the cost of 7.11). Overall mean premiums remained premiums has increased markedly303. The at 4.8% or 4.9% of turnover during this SRA has noted some insurers and brokers period, within a range of 3% and 7% linked reporting average increases of around 15- to size of firm (representing a higher 20% for the minimum level of cover and proportion of turnover for smaller firms). higher rises for cover beyond this304. The mean premium fell from £29,478 in 2014-15 to £26,767 in 2017-18. In 2017- 420. A significant element of PII costs is run-off 18 mean premiums fell overall and for cover to meet claims that may be made in smaller firms but increased for larger the future after a firm ceases to practice firms300. and arising from a firm’s time in practice. In the Law Society’s 2017-18 PII survey, the 418. The Law Society’s surveys show differences median cost of run-off for all firms went between BAME firms (where at least half down to 250% of annual premium costs of partners are BAME) and non-BAME (from 300%). There were increases in the firms. In the 2017-18 survey, premiums proportion of firms paying between 200% represented 5.6% of turnover at BAME and 300%, except for 5-10 partner firms. firms and 4.7% at non-BAME firms. In In June 2020, the SRA agreed to extend by the authors’ analysis, BAME firms seem a year the use of the Solicitors Indemnity more prone to the more moderate risk Fund to provide post six-year run-off cover factors, whereas non-BAME firms seem for claims against firms which have closed to overindex on those risk factors with without a successor practice. potentially more serious consequences. 421. In addition to PII, firms may take out other 419. In 2018/ 2019 the PII market is reported types of insurance to cover for specific to have hardened, as insurance providers risks, which are increasing their costs. For left the market and remaining providers example, in the Law Society’s 2017-18 raised their premiums301. This is not survey, 17% of firms had taken out data limited to legal services and was triggered insurance and 21% cyber insurance. after a Lloyds of London post-loss review
Figure 7.11: PII mean premiums and as a percentage of turnover for solicitors’ firms
2014-15 2015-16 2016-17 2017-18 PREMIUM PREMIUM PREMIUM PREMIUM All firms £29,478 £27,209 £26,853 £26,767 Sole practitioners £9,448 £8,773 £9,379 £8,655 2-4 partners £29,848 £29,049 £32,470 £28,295 5-10 partners £85,095 £71,448 £66,724 £79,656 11-25 partners £161,070 £154,356 £127,965 £148,988
% of turnover % of turnover % of turnover All firms - 4.8% 4.8% 4.9% Sole practitioners - 7% 6% 6.3% 2-4 partners - 5.5% 4.6% 5% 5-10 partners - 3.2% 3.4% 3.5% 11-25 partners - 3.9% 2.9% 3% 136 § The State of Legal Services 2020 § Evidence Compendium
International standing of jurisdiction
Economic performance
422. UK legal services net exports have almost § UK ranks second globally for legal doubled since 2009, from £3.4bn to services fee revenue. It accounts for a £6.6bn in 2018 (see Figure 7.12 below). third of Western European fee revenue There was a sharp increase of 27.2% over and 5-6% of global fee revenue the previous 12 months. In 2018 legal § There are over 200 foreign law services represented 16% of exports in the firms with offices in the UK from 40 professional and management services jurisdictions sector – the highest balance of trade § Around 10,000 PCF holders from among professional services sectors in England and Wales are working the UK. This strong performance picture is abroad, a figure which has risen by largely driven by corporate law firms. 80% over the last decade 423. An annual report by TheCityUK305 compiles § 2,000 barristers in England and Wales various indicators that help explain this receive instructions from abroad favourable position: Exit from the EU § English law is used in 40% of all global corporate arbitrations and London is 424. The United Kingdom left the European seen as the leading preferred centre Union on 29 March 2020. At the time of for arbitration writing, negotiations between the UK government and EU diplomats on the § 75% of cases in the UK commercial future relationship between the UK and court were international in nature in the EU are ongoing. 2018
Figure 7.12: Net exports of UK legal services (£billions)
£6.55
£5.26
£4.85
£4.36 £4.41 £4.05 £3.81 £3.41 £3.31 £3.37
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
£billions The State of Legal Services 2020 § Evidence Compendium § 137
425. Since the EU referendum widespread sector turnover by almost £3 billion concerns were raised about the possible by 2025, mainly triggered by reduced damaging consequences of EU exit for demand for legal services from the wider legal services. These have centred on: economy. § Mutual recognition of professional 428. The impact of the UK’s exit from the EU qualifications – reciprocal on the international competitiveness arrangements for the recognition of the legal services sector is unknown, of legal qualifications between EU but the Law Society307 and TheCityUK member states that exist under have both expressed confidence about various EU directives306 would no likely resilience. They point out that longer apply to the UK if no deal is the jurisdiction enjoys some natural struck for after the transition period. advantages that will be unaffected, for § Cross-border practice rights within the example the position of English common EU – implications for several functions/ law as the governing law for over a quarter rights for UK lawyers if cross-border of the world’s jurisdictions. The jurisdiction practice rights are not preserved. Such also has a solid track record to build on functions include the right to appear with the quality of work and independence before European Courts and to legal of the judiciary being key cornerstones professional privilege, and the right of its reputation. Even so, the UK faces of UK lawyers to fly in and out of EU increasingly strong competition, especially member states to provide opinions, to its position as dispute resolution centre advice and represent clients. of choice. § Access to a talented workforce – loss of functions/rights with the EU has 429. The outcomes of trade deals will shape raised concerns about the ability of the sector’s economic performance the legal sector to continue to access a internationally, especially the extent talented workforce, as many law firms to which they lead to an opening up draw on the expertise and mobility of of market access given our liberalised staff from the EU. There is a possibility regulatory framework. For example, that limits on employing international the UK will no longer benefit from the staff in the UK may lead to firms provisions of EU Free Trade Agreements, transferring operations outside of the such as with Korea, where access to UK. markets was eased after long and painstaking negotiations. 426. The All-Party Parliamentary Group (APPG) on Legal and Constitutional Affairs carried 430. In her evidence to the International out an inquiry into the effect of Brexit on Trade Committee in 2019308, Alison the legal services sector and published its Hook highlighted that alternative legal report in October 2018. The APPG made service providers, such as the Big ten recommendations to government, Four firms, cannot establish easily to which included seeking to retain mutual provide legal services in many foreign market access as far as possible in any jurisdictions, including within the EU. She future relationship with the EU and also pointed out that that traditional law avoiding a no-deal scenario at all costs. firm partnerships face barriers in many jurisdictions to opening branch offices or 427. As well as the general consequences subsidiaries, or from forming partnerships of EU exit, serious concerns have been with locally qualified lawyers. In some expressed about the impact of a no deal cases, there are barriers to fly in, fly out exit. In August 2018, the Law Society work. There are also important non-tariff published economic forecasts warning barrier equivalents in many key markets that a no deal exit would reduce legal which do permit foreign legal practice. 138 § The State of Legal Services 2020 § Evidence Compendium
LawTech Regulation
431. Successful adoption of lawtech will be 434. In his interim report312, Professor Stephen critical to maintaining the sector’s strong Mayson made the link between effective international standing, for example the and properly regulated legal services and UK will not retain its popularity with sustaining the UK’s international position international business unless it provides and reputation. Initially, the regulatory dispute resolution that makes appropriate model in England and Wales was viewed use of new technologies.309 with suspicion overseas, but attitudes have softened over the years. Lately, 432. Analysis by the Law Society310 suggests several jurisdictions have introduced that this jurisdiction’s closest competitors models inspired in part by the Legal on lawtech are Singapore, Hong Kong Services Act. These feature independent and the Netherlands. Although the UK regulatory authorities or at least greater leads in some aspects, it is lagging in separation between regulatory and others, and overall the gap between the representative functions. And many UK and the competitor nations is not jurisdictions around the world now permit large. It also suggests that London is fast some degree of non-lawyer ownership, becoming a hub for innovative start-ups. although often with conditions attached. However, the Law Society also noted that lawtech remains less mature than other 435. In the United States, the American Bar fields of digital disruption, most notably Association has called for US jurisdictions Fintech, where funding and regulatory to consider new approaches to regulation alignment are more advanced. Further, it to increase access to justice, although so warned that UK legal technology will need far it has stopped short of endorsing ABS. continual investment to stay on top – with Notable examples of reforms are taking other jurisdictions seeing strong growth in place in California, Washington, Illinois, their domestic sectors. Arizona and Utah. In August 2020, the Arizona and Utah became the first states 433. In a paper prepared for the LSB, Alison to permit ABS-style reforms. Hook noted very different responses to lawtech by legal services regulators 436. Liberalising reforms in other jurisdictions internationally.311 Overall, she found most are welcome, especially if alignment of to be cautious, if not actively inclined to rules makes it easier to trade. However, look negatively at these developments. England and Wales can also expect a However, a few had sought to facilitate tougher competitive climate as overseas lawtech and have enabled new entrants law firms benefit from more relaxed to challenge and change the regulatory regulatory environments in their home landscape more profoundly. While the jurisdictions. picture across the nine regulatory bodies in this jurisdiction varies, initiatives like SRA Innovate are examples of England and Wales adopting a facilitative model in this vein. The UK government has also actively supported the growth of the lawtech sector. The State of Legal Services 2020 § Evidence Compendium § 139 8. ENDNOTES The State of Legal Services 2020 § Evidence Compendium § 141
1. Framework and data sources 1 Protecting and promoting the public interest; supporting the constitutional principle of the rule of law; improving access to justice; protecting and promoting the interests of consumers; promoting competition of services; encouraging an independent, strong, diverse and effective legal profession; increasing public understanding of the citizen’s rights and duties; promoting and maintaining adherence to the professional principles. 2 ONS. 18 January 2016. “Measuring equality: A guide for the collection and classification of ethnic group, national identity and religion data in the UK.” Available at: https://www.ons.gov.uk/methodology/ classificationsandstandards/measuringequality/ethnicgroupnationalidentityandreligion#ethnic-group
2. Environmental context and drivers of change 3 ONS. 2020. Gross Domestic Product (GDP). Available at: https://www.ons.gov.uk/economy/ grossdomesticproductgdp 4 OBR. 2020. Coronavirus analysis. Available at: https://obr.uk/coronavirus-analysis/ 5 ONS. Ibid. 6 OBR. Ibid. 7 HMRC. 18 September 2020. Coronavirus Job Retention Scheme statistics: September 2020 - data tables. Available at: https://www.gov.uk/government/statistics/coronavirus-job-retention-scheme-statistics-september-2020 8 Resolution Foundation. 21 July 2020. The Living Standards Audit 2020. Available at: https://www. resolutionfoundation.org/publications/the-living-standards-audit-2020/ 9 IHS Markit. August 2020. IHS Markit UK Household Finance Index: Strain on household finances intensifies in August. Press release available at: https://www.markiteconomics.com/Public/Home/ PressRelease/99aa1031515d4f8b85729bd31a9ec90a
3. Access to legal services for all 10 YouGov. 2020. Legal needs of individuals in England and Wales: dataset. Available at: https://www. legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and-wales-2019 [Accessed 07 October 2020]. 11 Fig. 1. p. 9. YouGov. 2020. Legal needs of individuals in England and Wales: Technical Report 2019/20. Available at: https://www.legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and- wales-2019 12 LSB. 2018. The legal needs of small businesses 2013-2017: infographic. Available at: https://www. legalservicesboard.org.uk/research/the-legal-needs-of-small-businesses-2013-2017 [Accessed 07 October 2020]. 13 See figure 2.1 “Logic tree for proxy measurement of legal need and unmet legal need”, in OECD.31 May 2019. Legal Needs Surveys and Access to Justice. Available at: https://www.oecd-ilibrary.org/sites/928265ec-en/index. html?itemId=/content/component/928265ec-en&mimeType=text/html [Accessed 18 October 2019]. 14 Fig. 54. P.88. YouGov. 2020. Legal needs of individuals in England and Wales: Technical Report 2019/20. Available at: https://www.legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and- wales-2019 [Accessed 07 October 2020]. 15 Mid 2019 population estimate of England and Wales aged 18+ is 46,786,333. 31% of 46,786333 divided by 4 (period of years covered by research) is 3,625,941. ONS population estimates available from: https://www. ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/datasets/ populationestimatesforukenglandandwalesscotlandandnorthernireland [Accessed 08 July 2020]. 16 Fig. 55. P.89. YouGov. Ibid. 17 Fig. 57. p. 91. YouGov. 2019. Legal needs of individuals in England and Wales: Technical Report 2019/20. Available at: https://www.legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and- wales-2019 [Accessed 07 October 2020]. 18 YouGov. 2020. Legal needs of individuals in England and Wales: dataset. Available at: https://www. legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and-wales-2019 [Accessed 07 October 2020]. 19 P. 14. YouGov. 2020. Legal needs of individuals in England and Wales: summary report. Available at: https://www. legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and-wales-2019 [Accessed 07 October 2020]. 20 YouGov. 2020. Legal needs of individuals in England and Wales: dataset. Available at: https://www. legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and-wales-2019 [Accessed 07 October 2020]. 21 YouGov. 2020. Legal needs of individuals in England and Wales: dataset. Available at: https://www. legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and-wales-2019 [Accessed 07 October 2020]. 142 § The State of Legal Services 2020 § Evidence Compendium
22 P.91. YouGov. 2020. Legal needs of individuals in England and Wales: Technical Report 2019/20. Available at: https://www.legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and- wales-2019 [Accessed 07 October 2020]. 23 P. 81. YouGov. Ibid. 24 See figure 6.1. p. 66. Ipsos MORI. May 2016.Online survey of individuals’ handling of legal issues in England and Wales 2015. Available at: https://www.legalservicesboard.org.uk/research/reports/online-survey-of- individuals-handling-of-legal-issues-in-england-and-wales-2015 [Accessed 10 October 2019]. 25 P. 36 and Fig 10 p. 25. YouGov. 2020. Ibid. 26 World Justice Project. 2020. Rule of Law Index 2020. Available at: https://worldjusticeproject.org/our-work/ research-and-data/wjp-rule-law-index-2020 [Accessed 22 July 2020] 27 ONS. 2020. Business population estimates 2019. Available at: https://www.gov.uk/government/statistics/ business-population-estimates-2019 [Accessed 07 October 2020] 28 Federation of Small Businesses. June 2020. Late Again: how the coronavirus pandemic is impacting payment terms for small firms. Available at: https://www.fsb.org.uk/resources-page/late-again--how-the-coronavirus- pandemic-is-impacting-payment-terms-for-small-firms--.html [Accessed 07 October 2020]. 29 Intellectual Property Office 23 August 2017.Building the Evidence Base on the Performance of the UK Patent System. Report available at: https://www.gov.uk/government/publications/uk-patent-system-building-the-evidence- base [Accessed 07 October 2020]. 30 Research Works. July 2016. CMA Legal Services Qualitative Research Report. Report available at: https://assets. publishing.service.gov.uk/media/577f634eed915d3cfd000123/Research-Works-Legal-Services-Report.pdf [Accessed 07 October 2020]. 31 SRA. 29 July 2019. Small businesses left ot fight their own legal corner. Press Release available at:https:// www.sra.org.uk/sra/news/press/2019-press-release-archive/small-firms-research-legal-access-challenge/ [Accessed 07 October 2020]. 32 In 2016 ICAEW applied to be designated for all the reserved activities, but the Lord Chancellor rejected the LSB’s recommendation that it should be granted these rights. ICAEW judicially reviewed the Lord Chancellor’s decision, but only the element of his decision relating to oaths was quashed. See John Hyde. 5 March 2019. “ICAEW loses appeal to regulate all legal services”. Law Gazette. Article available at: https://www.lawgazette.co.uk/law/icaew- loses-appeal-to-regulate-all-legal-services/5069499.article [Accessed 07 October 2020]. 33 FCA. January 2020. The financial lives of consumers across the UK: Key findings from the FCA’s Financial Lives Survey 2017. Report available at: https://www.fca.org.uk/publication/research/financial-lives-consumers-across-uk. pdf [Accessed 07 October 2020]. 34 Potential vulnerability is defined to take into account a range of characteristics. It covers those who may suffer disproportionately if things go wrong, because they have low financial resilience. It also covers those who may be less able to engage with their finances or with financial services. 35 LSB, CMA. September 2020. Prices of Individual Consumer Legal Services in England and Wales 2020: Wave 3 of a survey of prices for commonly used legal services. Report available at: https://www.legalservicesboard.org.uk/ prices2020 [Access 08 October 2020]. 36 Anna McNee. 2019. Legal expenses insurance and access to justice. IBA. Report available at: https://www. scottishlegal.com/uploads/legal-expenses-Insurance-report-2019.pdf [Accessed 07 October 2020]. 37 para. 2, p.5. MoJ. February 2019. Post-Implementation Review of Part 1of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). Report available at: https://assets.publishing.service.gov.uk/government/ uploads/system/uploads/attachment_data/file/777038/post-implementation-review-of-part-1-of-laspo.pdf [Accessed 07 October 2020]. 38 para 1148 p. 273. MoJ. Ibid. 39 MoJ. 2020. “Table 1.0: Overall annual legal aid expenditure since 2005-06 (£m)” in Legal Aid statistics tables - January to March 2020. Tables available at: https://www.gov.uk/government/statistics/legal-aid-statistics- january-to-march-2020 [Accessed 07 October 2020] 40 p.3. House of Commons Justice Committee. 2015. Impact of changes to civil legal aid under Part 1 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012. Report available at: https://publications.parliament.uk/pa/ cm201415/cmselect/cmjust/311/311.pdf [Accessed 07 October 2020]. 41 p. 52. James Organ and Jennifer Sigafoos. 2018. The Impact of LASPO on routes to justice. Equality and Human Rights Commission. Report available at: https://www.equalityhumanrights.com/sites/default/files/the-impact- of-laspo-on-routes-to-justice-september-2018.pdf [Accessed 07 October 2020]. 42 LSCP. 2012. Tracker Survey 2012 data tables for recent user sample. Available at: https://www. legalservicesconsumerpanel.org.uk/what-we-do/research-and-reports#2012 [Accessed 07 October 2020] P.2 LSCP. 11 August 2020. Tracker Survey 2020: How consumers are using legal services. Available at: https://www. legalservicesconsumerpanel.org.uk/wp-content/uploads/2020/08/LSCP-2020-How-consumers-are-using- FINAL-DRAFT-.pdf [Accessed 07 October 2020]. 43 LSB. 2020. Coronavirus impact dashboard development. Dashboard available at: https://www.legalservicesboard. org.uk/coronavirus_impact [Accessed 07 October 2020]. 44 Law Centres Network. 21 July 2020. law For All: Protecting the life you live. Report available at: https://www. lawcentres.org.uk/policy/news/news/law-for-all-our-new-50th-anniversary-campaign-and-report [Accessed 07 October 2020]. The State of Legal Services 2020 § Evidence Compendium § 143
45 MoJ. “Table 11. Legal representation status of applicants and respondents in cases with at least one hearing in Family courts in England and Wales, by case type annually 2011 - 2019 and quarterly Q1 2012 - Q1 2020”. In Family Court Statistics Quarterly, January to March 2020. Available at: https://assets.publishing.service.gov. uk/government/uploads/system/uploads/attachment_data/file/903078/Family_Court_Tables__Jan_to_ Mar_2020__v2.ods [Accessed 29 September 2020]. 46 p.11. James Organ and Jennifer Sigafoos. Ibid. 47 Liz Trinder et al. 2014. Litigants in person in private family law cases. MoJ. Report available at: https://assets. publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/380479/litigants-in- person-in-private-family-law-cases.pdf [Accessed 07 October 2020]. 48 p. 25. James Organ and Jennifer Sigafoos. Ibid. 49 p. 25. James Organ and Jennifer Sigafoos. Ibid. 50 p. 26. MoJ. 2019. Legal Support Action Plan. Available at: https://www.gov.uk/government/publications/legal- support-action-plan [Accessed 07 October 2020]. 51 Debra Morris and Warren Barr. 2013. “The impact of cuts in legal aid funding on charities”. Journal of Social Welfare & Family Law. 35 (1) pp79 -94. Article available at: https://www.ncbi.nlm.nih.gov/pmc/articles/ PMC3646318/ [Accessed 07 October 2020] 52 See The Law Society Infographic on community law providers and housing providers across England and Wales; Civil Justice Council response to Justice Committee inquiry (April 2014); 53 para. 822 p. 195. MoJ. February 2019. Post-Implementation Review of Part 1of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). Report available at: https://assets.publishing.service.gov.uk/ government/uploads/system/uploads/attachment_data/file/777038/post-implementation-review-of-part-1- of-laspo.pdf [Accessed 07 October 2020]. 54 LAA. 21 July 2020. Legal Aid Agency annual report and accounts 2019 to 2020. Available at: https://www.gov.uk/ government/publications/legal-aid-agency-annual-report-and-accounts-2019-to-2020 [Accessed 07 October 2020]. 55 MoJ. September 2020. “Table 9.1: Number of provider offices completing work in each period by legal aid scheme”. In Legal Aid statistics tables - April to June 2020. Available at: https://www.gov.uk/government/ statistics/legal-aid-statistics-quarterly-april-to-june-2020 56 Debra Morris and Warren Barr. Ibid. 57 para 824. MoJ. February 2019. Post-Implementation Review of Part 1of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). Report available at: https://assets.publishing.service.gov.uk/government/uploads/ system/uploads/attachment_data/file/777038/post-implementation-review-of-part-1-of-laspo.pdf [Accessed 07 October 2020]. 58 p. 8. Law Centres Network. 2018. LASPO Act 2012 Post-Implementation Review Submission from the Law Centres Network. Available at: https://www.lawcentres.org.uk/policy-and-media/papers-and-publications/briefings- and-submissions [Accessed 08 October 2020] 59 para. 50. MoJ. February 2019. Post-Implementation Review of Part 1of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). Report available at: https://assets.publishing.service.gov.uk/government/uploads/ system/uploads/attachment_data/file/777038/post-implementation-review-of-part-1-of-laspo.pdf [Accessed 07 October 2020]. 60 MoJ. September 2020. “Table 9.1: Number of provider offices completing work in each period by legal aid scheme”.In Legal Aid statistics tables - April to June 2020. Available at: https://www.gov.uk/government/statistics/ legal-aid-statistics-quarterly-april-to-june-2020 61 para. 823. MoJ. February 2019. Post-Implementation Review of Part 1of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). Report available at: https://assets.publishing.service.gov.uk/government/uploads/ system/uploads/attachment_data/file/777038/post-implementation-review-of-part-1-of-laspo.pdf [Accessed 07 October 2020]. 62 p. 8. Law Centres Network. Ibid. 63 para 1158. MoJ. Ibid. 64 P. 15. James Organ and Jennifer Sigafoos. Ibid. 65 para 1159. MoJ. Ibid. 66 para 159. MoJ. Ibid. 67 p. 24. MoJ. 2019. Legal Support: The Way Ahead. Report available at: https://www.gov.uk/government/ publications/legal-support-action-plan [Accessed 08 October 2020]. 144 § The State of Legal Services 2020 § Evidence Compendium
4. Competition working for consumers 68 Q70. LSCP. 2020. Tracker Survey data for 2020. Available at: https://www.legalservicesconsumerpanel.org.uk/ what-we-do/research-and-reports#2020 [Accessed 08 October 2020]. Q70. LSCP. 2019. Tracker Survey 2019 – Full data tables for legal service consumers. Available at: https://www. legalservicesconsumerpanel.org.uk/what-we-do/research-and-reports#2019 [Accessed 8 October 2019]. Q70. LSCP. 2018. Tracker Survey 2018 – Full data tables for legal services consumers. Available at: https://www. legalservicesconsumerpanel.org.uk/what-we-do/research-and-reports [Accessed 8 October 2019]. Q70. LSCP. 2017. Tracker Survey 2017 – data tables for recent users. Available at: https://www. legalservicesconsumerpanel.org.uk/what-we-do/research-and-reports [Accessed 8 October 2019]. Q70. LSCP. 2016. Tracker Survey 2016 – data tables for recent users. Available at: https://www. legalservicesconsumerpanel.org.uk/what-we-do/research-and-reports [Accessed 8 October 2019]. Q70. LSCP. 2015. Tracker Survey 2015 – data tables for recent users. Available at: https://www. legalservicesconsumerpanel.org.uk/what-we-do/research-and-reports [Accessed 8 October 2019]. 69 P. 54. YouGov. 2020. Legal needs of individuals in England and Wales: Technical Report 2019/20. Available at: https://www.legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and- wales-2019 [Accessed 07 October 2020]. 70 Fig 34. P. 59. YouGov. Ibid. 71 Fig 30. P. 55. YouGov. Ibid. 72 Q70 LSCP. 2020. Tracker Survey data for 2020. Available at: https://www.legalservicesconsumerpanel.org.uk/ what-we-do/research-and-reports#2020 [Accessed 08 October 2020]. 73 Q160_rb. LSCP. Ibid. 74 LSB, CMA. September 2020. Prices of Individual Consumer Legal Services in England and Wales 2020: Wave 3 of a survey of prices for commonly used legal services. Report available at: https://www.legalservicesboard.org.uk/ prices2020 [Access 08 October 2020]. 75 SRA. 6 June 2019. Checks reveal law firms need to do more to comply with transparency rules. Press release available at: https://www.sra.org.uk/sra/news/press/2019-press-release-archive/transparency-checks-june-2019/ 76 BSB. 2020. Compliance with the price, service and redress transparency rules. Report available at: https://www. barstandardsboard.org.uk/uploads/assets/3359c36e-ef3e-449d-883e18c5ebeabad6/202006-External- Transparency-spot-check-report.pdf 77 P. 73. YouGov. Ibid. 78 Q160_rb, Q76_rb. LSCP. Ibid. 79 LSCP. 2019. A discussion paper on quality indicators in legal services. Paper available at: https://www. legalservicesconsumerpanel.org.uk/wp-content/uploads/2019/12/2019-10-06-Quality-Indicators-in-Legal- Services.pdf [Accessed 08 October 2020]. 80 Para 6.10 p. 64 LSB, CMA. Ibid. 81 LSB. 2018. Increasing market transparency: LSB’s progress update on commitments in action plans published by frontline regulators. Report available at: https://www.legalservicesboard.org.uk/Projects/pdf/2018/Progress_ Update_Overarching_Statement.pdf [Accessed 08 October 2020]. 82 LSB. April 2020. Public Legal Education – update and next steps. Paper available at: https://www. legalservicesboard.org.uk/wp-content/uploads/2020/04/5.-Paper-20-22-PLE-update-and-next-steps.pdf [Accessed 08 October 2020]. 83 LSB. 2018. Technology and Innovation in Legal Services – Main Report. Report available at: https://www. legalservicesboard.org.uk/research/technology-and-innovation-in-legal-services-2018 [Accessed 08 October 2020]. 84 p. 8, 24, 43. LSB, CMA. Ibid. 85 LSB, CMA. Ibid. 86 p. 17. LSB. 2018. Technology and Innovation in Legal Services – Main Report. Available at: https://research. legalservicesboard.org.uk/news/tech-inno-2018/ [Accessed 08 October 2020]. 87 Fig 7. p. 11. LSB. 2018. Technology and Innovation in Legal Services – Main Report. Available at: https://research. legalservicesboard.org.uk/news/tech-inno-2018/ [Accessed 09 October 2020]. 88 Fig. 11. p. 16. Ibid. 89 p. 28. Alison Hook. 2019. Learning Lessons from Abroad - The Use and Regulation of Legal Technology in the Legal Sector Beyond England and Wales. Paper available at: https://www.legalservicesboard.org.uk/wp-content/ uploads/2019/07/International-AH-Report-VfP-4-Jul-2019.pdf [Acccessed 09 October 2020]. 90 p. 10. LegalGeek. 2019. Legaltech Startup Report 2019: a maturing market. Report available at: https:// legalsolutions.thomsonreuters.co.uk/content/dam/openweb/documents/pdf/uki-legal-solutions/report/tr- legaltech-startup-report-2019.pdf [Accessed 09 October 2020]. 91 Nicola Tulk, Chris Gorst, Louisa Shanks. June 2020. The Legal Access Challenge: Closing the legal gap through technology innovation. Nesta, SRA. Report available at: https://www.sra.org.uk/globalassets/documents/sra/ research/legal-access-challenge-report.pdf?version=49d9b9 [Accessed 09 October 2020] 92 See Fig 45. P. 61. LSB. Ibid. 93 p. 15 House of Commons Justice Select Committee. August 2020. Coronavirus (COVID-19): the impact on the legal professions in England and Wales. Report available at: https://publications.parliament.uk/pa/cm5801/cmselect/ cmjust/520/52002.htm [Accessed 09 October 2020]. 94 Nicola Tulk, Chris Gorst, Louisa Shanks. Ibid. The State of Legal Services 2020 § Evidence Compendium § 145
95 YouGov. 2020. Legal needs of individuals in England and Wales: dataset. Available at: https://www. legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and-wales-2019 [Accessed 07 October 2020]. 96 CMA. 2016. Legal Services Market Study: Final Report. Available at: https://www.gov.uk/cma-cases/legal-services- market-study#final-report [Accessed 09 October 2020]. 97 LSB. 2016. Unregulated Legal Services Providers: Research Summary. Available at: LSB. https://www. legalservicesboard.org.uk/research/reports/unregulated-legal-service-providers [Accessed 15 April 2020] 98 Nick Hilborne. 8 July 2020. “Farewill raises £20m to fuel exponential growth”. Legal Futures. Article available at: https://www.legalfutures.co.uk/latest-news/farewill-raises-20m-to-fuel-exponential-growth [Accessed 09 October 2020]. 99 CMA. Ibid. 100 Stephen Mayson. June 2020. Reforming legal services: Regulation beyond the echo chambers. Final report of the independent review of legal services regulation. Report available at: https://www.ucl.ac.uk/ethics-law/ publications/2018/sep/independent-review-legal-services-regulation [Accessed 12 October 2020]. 101 The Commission on Justice in Wales. 2019. Justice in wales for the People of Wales. Report available at: https://gov. wales/commission-justice-wales-report [Accessed 09 October 2020]. 102 Jomati Consultants. 2019. The legal sector in Wales - a rapid review. Report available at: https://gov.wales/sites/ default/files/publications/2019-10/the-legal-sector-in-wales-a-rapid-review.pdf [Accessed 09 October 2020].
5. Regulation that commands public and professional confidence 103 https://www.legalservicesconsumerpanel.org.uk/wp-content/uploads/2020/07/2020-07-15-LSCP-Quality- Report-FINAL.pdf 104 The ongoing competence project aims to understand if legal regulators have appropriate frameworks in place to ensure legal professionals remain competent throughout their careers. During the call for evidence we received 30 submissions of information and met with 50 stakeholders. A report on key findings will be published later in 2020. 105 Stakeholders include regulatory bodies and approved regulators, government bodies (e.g. HM Land Registry, HM Courts and Tribunals Service, Office of the Public Guardian), consumer groups (e.g. Citizens Advice, Law Centres Network), complaints bodies and tribunals (e.g. LeO, SDT), representative bodies (e.g. Criminal Bar Association, Sole Practitioners Group). 106 BSB. September 2020. Registration of Youth Court work. Webpage available at: https://www.barstandardsboard. org.uk/for-barristers/compliance-with-your-obligations/what-do-i-have-to-report-or-tell-to-the-bsb/ registration-of-youth-courts-work.html [Accessed 12 October 2020]. 107 BSB. 2016. BSB conducts thematic review on immigration services, adopts recommendations. Press release available at: https://www.barstandardsboard.org.uk/resources/bsb-conducts-thematic-review-on-immigration- services--adopts-recommendations.html [Accessed 12 October 2020]. 108 MigrationWork CIC. 2016. Quality of legal services for asylum seekers. Research commissioned by the Solicitors Regulation Authority and Legal Ombudsman. Report available at: https://www.sra.org.uk/sra/how-we-work/ reports/asylum-report/ [Accessed 12 October 2020]. 109 MoJ. February 2019. Post-Implementation Review of Part 1of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). Report available at: https://assets.publishing.service.gov.uk/government/uploads/system/ uploads/attachment_data/file/777038/post-implementation-review-of-part-1-of-laspo.pdf [Accessed 07 October 2020]. 110 Gillian Hunter, Jessica Jacobson, Amy Kirby. 2018. Judicial Perceptions of the Quality of Criminal Advocacy. Report of research commissioned by the Solicitors Regulation Authority and the Bar Standards Board. Report available at: https://www.sra.org.uk/sra/how-we-work/reports/criminal-advocacy/ [Accessed 12 October 2020]. 111 Bill Jeffrey. 2014.Independent criminal advocacy in England and Wales: A review by Sir Bill Jeffrey.Review available at: https://www.gov.uk/government/publications/independent-criminal-advocacy-in-england-and-wales [Accessed 12 October 2020]. 112 Ali Wigzell, Amy Kirby, Jessica Jacobson. The Youth Proceedings Adocacy Review: Final Report. Available at: https:// cilexregulation.org.uk/2015/11/19/youth-court-advocacy-research-released/ [Accessed 12 October 2020]. 113 SRA. July 2020. Ensuring high standards in solicitor advocacy. Press release available at: https://www.sra.org.uk/ sra/news/press/high-standards-solicitor-advocacy/ [Accessed 12 October 2020]. 114 Legal Ombudsman. 2020. Complaints data. Available at: https://www.legalombudsman.org.uk/information- centre/data-centre/complaints-data/ [Accessed 12 October 2020]. 115 SRA. 20 October 2016. SRA publishes data ahead of insurance consultation. Press release available at: https:// www.sra.org.uk/sra/news/press/2016/pii-trends-published/ [Accessed 16 October 2019] 116 See https://use-land-property-data.service.gov.uk/datasets/rfi/download 117 SRA. 2019. Residential conveyancing thematic review. Available at: https://www.sra.org.uk/sra/how-we-work/ reports/residential-conveyancing-thematic-report/ [Accessed 12 October 2020]. 146 § The State of Legal Services 2020 § Evidence Compendium
118 BSB. September 2020. Insurance for BSB entities. Webpage available at: https://www.barstandardsboard.org.uk/ for-barristers/bsb-entities/insurance-for-bsb-entities.html [Accessed 12 October 2020]. CILEx Regulation. Professional Indemnity Insurance. Webpage available at: https://cilexregulation.org.uk/entity/ professional-indemnity-insurance/ [Accessed 16 October 2019] CLC. Professional Indemnity Insurance. Webpage available at: https://www.clc-uk.org/regulation/professional- indemnity-insurance-1/ [Accessed 16 October 2019] CLSB. Practising Rules: Costs Lawyers. Available at: https://www.clsb.info/wp-content/uploads/2014/06/ Practising_Rules_9_April_2014.pdf [Accessed 16 October 2019] The Faculty Office.Code of Practice, Chapter 16: Insurance. Webpage available at: http://www.facultyoffice.org. uk/chapter/insurance/ [Accessed 16 October 2019] IPREG. Code of Conduct. Webpage available at: https://ipreg.org.uk/pro/regulations/code-conduct [Accessed 16 October 2019] SRA. SRA Indemnity Insurance Rules. Webpage available at: https://www.sra.org.uk/solicitors/standards- regulations/indemnity-insurance-rules/ [Accessed 12 October 2020]. 119 SRA. 20 October 2016. SRA publishes data ahead of insurance consultation”. Press Release available at: https:// www.sra.org.uk/sra/news/press/2016/pii-trends-published/ [Accessed 16 October 2019] 120 LSB. 2019. Desk Research SRA Negligence Professional Indemnity Insurance (PII) Claims Data. Unpublished. 121 SRA. June 2020. Annex 1: A brief summary of the changing PII market. Professional Indemnity Insurance – post six- year run-off cover. SRA Board Paper 22 June 2020. 122 Mustard Research. 2018. Professional Indemnity Insurance Research report 2017-18. Available at: https://www. lawsociety.org.uk/en/topics/research/pii-surveys [Accessed 12 October 2020]. 123 Bar Council. 2020. The Bar Council’s Response to the LSB’s Call for evidence on Ongoing Competence. Available at: https://www.barcouncil.org.uk/uploads/assets/cc4d10c9-34d4-4970-886780b85d900364/LSB-Ongoing- Competence-consultation-response.pdf [Accessed 12 October 2020]. 124 LSCP 2019. 2017 to 2019. Tracker Survey Data Tables. Available at: https://www.legalservicesconsumerpanel. org.uk/what-we-do/research-and-reports [Accessed 12 October 2020]. 125 LSCP. Ibid. 126 SRA. 2019. SRA Transparency Rules: Web sweep report. Webpage available at: https://www.sra.org.uk/sra/how- we-work/reports/web-sweep/ [Accessed 3 October 2019]. 127 BSB. 2020. Compliance with the price, service and redress transparency rules. Available at: https://www. barstandardsboard.org.uk/uploads/assets/3359c36e-ef3e-449d-883e18c5ebeabad6/202006-External- Transparency-spot-check-report.pdf [Accessed 12 October]. 128 LSCP. 2018. 2018 Tracker Survey Data Table. Available at: https://www.legalservicesconsumerpanel.org.uk/ what-we-do/research-and-reports#2018 [Accessed 12 October 2020]. 129 For an explanation of social grade classification see:http://www.nrs.co.uk/nrs-print/lifestyle-and- classification-data/social-grade/ 130 London Economics. 2017. Research into the experiences and effectiveness of solicitors’ first tier complaints handling processes. Research commissioned by SRA and Legal Ombudsman. Available at: https://www.sra.org.uk/sra/ how-we-work/reports/first-tier-complaints/ [Accessed 12 October 2020]. 131 SRA. 2020. First tier complaints 2019-2020. Available at: https://www.sra.org.uk/sra/how-we-work/reports/first- tier-complaints-2019/ [Accessed 21 July 2020]. 132 Annual regulator returns; IpReg annual reports. Available at: https://www.ipreg.org.uk/about-us/ annual-reports; P. 6. CLSB. Regulatory return monitoring report. Available at: https://clsb.info/wp-content/ uploads/2020/05/Regulatory-return-monitoring-report-2019.pdf [Accessed 21 July 2020]. 133 See “Proportion of complaint types received 2012-2018” in SRA. July 2019. First tier complaints report. Available at: https://www.sra.org.uk/sra/how-we-work/reports/first-tier-complaints-report.page [Accessed 17 July 2019] and SRA. July 2020. First tier complaints 2019-2020. Available at: https://www.sra.org.uk/sra/how-we-work/ reports/first-tier-complaints-2019/ [Accessed 21 July 2020] 134 CILEx Regulation, provided to LSB 2020. 135 Legal Ombudsman. September 2020. Overview of annual complaints data 2019/20. Available at: https://www. legalombudsman.org.uk/information-centre/news/annual-complaints-data-overview-2019-20/ [Accessed 12 October 2020]. 136 See “Proportion of complaints resolved” in SRA. 2019. First tier complaints report. Available at: https://www.sra. org.uk/sra/how-we-work/reports/first-tier-complaints-report.page [Accessed 17 July 2019]. 137 CILEx Regulation, provided to LSB 2020. The State of Legal Services 2020 § Evidence Compendium § 147
138 p. 46. The Office for Legal Complaints. 2013.Annual report and accounts: For the year ending 31 March 2013. Available at: https://www.gov.uk/government/publications/the-office-for-legal-complaints-annual-report- and-accounts-for-the-year-ending-31-march-2013 [Accessed 21 July 2020]. p.10. The Office for Legal Complaints. 2015.Annual report and accounts: For the year ending 31 March 2015. Available at: https://www.nao.org.uk/wp-content/uploads/2016/01/Accounts-of-the-Office-of-Legal- Complaints-2014-15.pdf [Accessed 21 July 2020] p.12. The Office for Legal Complaints. 2016.Annual report and accounts: For the year ending 31 March 2016. Available at: https://www.legalombudsman.org.uk/?portfolio=annual-report-2015-16 [Accessed 21 July 2020]. p. 8. 2017. The Office for Legal Complaints.Annual report and accounts: For the year ending 31 March 2017. Available at: http://www.legalombudsman.org.uk/wp-content/uploads/2014/09/OFFICIAL-Annual-Report- 2016-17-final-171016.pdf [Accessed 21 July 2020]. p.10. The Office for Legal Complaints. July 2020.Annual report and accounts: For the year ending 31 March 2020. Available at: https://www.legalombudsman.org.uk/?portfolio=annual-report-accounts-2019-20 [Accessed 21 July 2020]. 139 Data provided by Legal Ombudsman. 140 Legal Ombudsman. September 2020. Overview of annual complaints data 2019/20. Available at: https://www. legalombudsman.org.uk/information-centre/news/annual-complaints-data-overview-2019-20/ [Accessed 12 October 2020]. 141 Figure 31. p. 66. Kieran Larkin, Vicky Clarke, Clive McDonnell, Michael Turner. 2018. The legal needs of small businesses 2013-2017. BMG Research. Available at: https://research.legalservicesboard.org.uk/news/latest- research-18/ [Accessed 8 October 2019] 142 146,600 registered solicitors in 2018 and 11508 reports in 2017/18. 143 p.33. SRA. Annual Review 2015/16. Available at: https://www.sra.org.uk/sra/how-we-work/reports/ [Accessed 6 September 2019]. p.54. SRA. Annual Review 2016/17. Available at: https://www.sra.org.uk/sra/how-we-work/reports/ [Accessed 6 September 2019]. p.70. SRA. Annual Review 2017/18. Available at: https://www.sra.org.uk/sra/how-we-work/reports/ [Accessed 6 September 2019]. 144 Over 90% of cases the SDT deals with are referred by the SRA, with the remainder brought to the SDT by members of the public (See SDT website, available at: https://www.solicitorstribunal.org.uk/about-us ). 145 SDT. Annual reports. Available at: https://www.solicitorstribunal.org.uk/about-us/annual-reports [Accessed 17 august 2020]. 146 p.41. SRA. Annual Review 2015/16. Available at: https://www.sra.org.uk/sra/how-we-work/reports/ [Accessed 6 September 2019]. p.85. SRA. Annual Review 2017/18. Available at: https://www.sra.org.uk/sra/how-we-work/reports/ [Accessed 6 September 2019]. 147 p.41. SRA. Annual Review 2015/16. Available at: https://www.sra.org.uk/sra/how-we-work/reports/ [Accessed 6 September 2019]. p.69. SRA. Annual Review 2016/17. Available at: https://www.sra.org.uk/sra/how-we-work/reports/ [Accessed 6 September 2019]. p.85. SRA. Ibid. 148 Neil Rose. 14 November 2018. “SRA urged to tackle mental health problems with ‘fitness to practise’ regime”. Legal Futures. Article available at: https://www.legalfutures.co.uk/latest-news/sra-urged-to-tackle-mental- health-problems-with-fitness-to-practise-regime [Accessed 12 September 2019]. 149 See Table 2, p.14. BSB. September 2018. Enforcement: Annual Report 2017/18. Available at: https://www. barstandardsboard.org.uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional- conduct-department/performance-reports/annual-and-quarterly-performance-reports/performance- reports-201718/ [Accessed 11 September 2019]. 150 p.11 - 13. BSB. Ibid. p.12. BSB. January 2020. Enforcement: Annual Report 2018/19. Available at: https://www.barstandardsboard. org.uk/uploads/assets/e4526ff1-878c-410e-aaf64eee4413da8f/Enforcement-Report-2018-19.pdf [Accessed 13 August 2020]. p. 8 - 9. BSB. 2017. Enforcement: Annual Report 2016/17. Available at: https://www.barstandardsboard.org.uk/ about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional-conduct-department/ performance-reports/annual-and-quarterly-performance-reports/performance-reports-201617/ [Accessed 11 September 2019]. p.10 - 11. BSB. 2016. Enforcement: Annual Report 2015/16. Available at: https://www.barstandardsboard.org. uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional-conduct-department/ performance-reports/annual-and-quarterly-performance-reports/performance-reports-201516/ [Accessed 11 September 2019]. 148 § The State of Legal Services 2020 § Evidence Compendium
151 See Table 4, p.19 and Table 5, p. 20. BSB. January 2020. Enforcement: Annual Report 2018/19. Available at: https:// www.barstandardsboard.org.uk/news-publications/publications/annual-reports-and-enforcement-reports. html [Accessed 14 August 2020]. See Table 4, p.19 and Table 5, p. 20. BSB. 2018. Enforcement: Annual Report 2017/18. Available at: https://www. barstandardsboard.org.uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional- conduct-department/performance-reports/annual-and-quarterly-performance-reports/performance- reports-201718/ [Accessed 11 September 2019] See Table 3, p.13 and Table 4, p. 14. BSB. 2017. Enforcement: Annual Report 2016/17. Available at: https://www. barstandardsboard.org.uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional- conduct-department/performance-reports/annual-and-quarterly-performance-reports/performance- reports-201617/ [Accessed 11 September 2019] See Table 2, p.7. BSB. 2016. Enforcement: Annual Report 2015/16. Available at: https://www.barstandardsboard. org.uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional-conduct- department/performance-reports/annual-and-quarterly-performance-reports/performance-reports-201516/ [Accessed 11 September 2019] 152 See p. 8. BSB. September 2018. Enforcement: Annual Report 2017/18. Available at: https://www. barstandardsboard.org.uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional- conduct-department/performance-reports/annual-and-quarterly-performance-reports/performance- reports-201718/ [Accessed 11 September 2019]. 153 See Table 6, p.24 and Table 7, p. 27. BSB. January 2020. Enforcement: Annual Report 2018/19. Available at: https:// www.barstandardsboard.org.uk/news-publications/publications/annual-reports-and-enforcement-reports. html [Accessed 14 August 2020]. See Table 13, p. 20 and Table 14 p. 21. BSB. 2018. Enforcement: Statistical Report 2017/18. Available at : https:// www.barstandardsboard.org.uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/ professional-conduct-department/performance-reports/annual-and-quarterly-performance-reports/ performance-reports-201718/ [Accessed 11 September 2019]. See Table 13, p. 18 and Table 14, p. 19. BSB. 2017. Enforcement: Statistical Report 2016/17. Available at: https:// www.barstandardsboard.org.uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/ professional-conduct-department/performance-reports/annual-and-quarterly-performance-reports/ performance-reports-201617 [Accessed 11 September 2019]. See p. 19. BSB. July 2017. Enforcement: Annual Report 2016/17. Available at: https://www.barstandardsboard.org. uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional-conduct-department/ performance-reports/annual-and-quarterly-performance-reports/performance-reports-201617/ [Accessed 11 September 2019]. In 2016/17 a large number of cases were withdrawn because they related to a single individual, “Barrister B” who had been disbarred before they concluded. Removing these cases shows the majority of those concluded were proved. 154 P. 19. BSB. 2017. Enforcement: Statistical Report 2016/17. Available at: https://www.barstandardsboard.org. uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional-conduct-department/ performance-reports/annual-and-quarterly-performance-reports/performance-reports-201617 [Accessed 11 September 2019]. 155 BSB Enforcement Reports 2015/16 to 2018/19. Available at: https://www.barstandardsboard.org.uk/news- publications/publications/annual-reports-and-enforcement-reports.html [Accessed 2 September 2020]. 156 p. 20. BSB. 2017. Enforcement: Annual Report 2016/17. Available at: https://www.barstandardsboard.org.uk/ about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional-conduct-department/ performance-reports/annual-and-quarterly-performance-reports/performance-reports-201617/ [Accessed 12 September 2019]. 157 See p. 11. BSB. 2016. Enforcement: Annual Report 2015/16. Available at: https://www.barstandardsboard.org. uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional-conduct-department/ performance-reports/annual-and-quarterly-performance-reports/performance-reports-201516/ [Accessed 12 September 2019]. See p. 13. BSB. 2018. Enforcement: Annual Report 2017/18. Available at : https://www.barstandardsboard.org. uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional-conduct-department/ performance-reports/annual-and-quarterly-performance-reports/performance-reports-201718/ [Accessed 12 September 2019]. The State of Legal Services 2020 § Evidence Compendium § 149
158 See pp. 29-30. BSB. January 2020. Enforcement: Annual Report 2018/19. Available at: https://www. barstandardsboard.org.uk/news-publications/publications/annual-reports-and-enforcement-reports.html [Accessed 14 August 2020]. See p. 13. BSB. 2018. Enforcement: Annual Report 2017/18. Available at : https://www.barstandardsboard.org. uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional-conduct-department/ performance-reports/annual-and-quarterly-performance-reports/performance-reports-201718/ [Accessed 12 September 2019]. See Table 2, p. 5. BSB. 2018. Enforcement: Statistical Report 2017/18. Available at : https://www. barstandardsboard.org.uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional- conduct-department/performance-reports/annual-and-quarterly-performance-reports/performance- reports-201718/ [Accessed 12 September 2019]. See p. 11. BSB. 2016. Enforcement: Annual Report 2015/16. Available at: https://www.barstandardsboard.org. uk/about-bar-standards-board/how-we-do-it/our-governance/our-staff/professional-conduct-department/ performance-reports/annual-and-quarterly-performance-reports/performance-reports-201516/ [Accessed 12 September 2019]. 159 See Pp.9, 12. May 2020. IPREG. The Intellectual Property Regulation Board - Annual Report 2019. Available at: https://ipreg.org.uk/about-us/annual-reports [Accessed 14 August 2020]. p.9-12. 2019. IPREG. The Intellectual Property Regulation Board - Annual Report 2018. Available at: https://ipreg. org.uk/about-us/annual-reports [Accessed 14 August 2020]. p.9. 2018. IPREG. The Intellectual Property Regulation Board - Annual Report 2017. Available at: https://ipreg.org. uk/about-us/annual-reports [Accessed 14 August 2020]. 160 Richard Moorhead, Trevor Clark, Alan Brener, Paul Gilbert, Steven Vaughan. 2019. In-House Lawyers and Non-Executive Directors: A Discussion About Best Practice. Available at: https://papers.ssrn.com/sol3/papers. cfm?abstract_id=3410929 [Accessed 09 October 2020]. 161 Content drawn from LOD In Collaboration Report written by Steven Vaughan and Richard Moorhead.2019. Which way is the wind blowing? Understand the moral compass of in-house legal practice. Available at: https://www. lodlaw.com/reports/which-way-wind-blowing/ [Accessed 09 October 2020]. 162 LSCP. 2020. Tracker Survey data for 2020. Available at: https://www.legalservicesconsumerpanel.org.uk/what- we-do/research-and-reports#2020 [Accessed 08 October 2020]. 163 LSCP. Ibid. 164 LSCP. 2018. Tracker Survey 2018 – A sample of the general population. Available at: https://www. legalservicesconsumerpanel.org.uk/what-we-do/research-and-reports 165 Q40_d. LSCP. 2018. Tracker Survey 2018 – A sample of the general population. Available at: https://www. legalservicesconsumerpanel.org.uk/what-we-do/research-and-reports [Accessed 30 September 2019]. Q40_d. LSCP. 2017. Tracker Survey 2017 – data tables for general public sample. Available at: https://www. legalservicesconsumerpanel.org.uk/what-we-do/research-and-reports [Accessed 3 October 2019]. Q40_d. LSCP. 2016. Tracker Survey 2016 – data tables for general public sample. Available at: https://www. legalservicesconsumerpanel.org.uk/what-we-do/research-and-reports [Accessed 3 October 2019]. 166 p.61. YouGov. 2020. Legal needs of individuals in England and Wales: Technical Report 2019/20. Available at: https://www.legalservicesboard.org.uk/online-survey-of-individuals-handling-of-legal-issues-in-england-and- wales-2019 [Accessed 08 October 2020]. 167 YouGov. Ibid. 168 p.75. Kieran Larkin, Vicky Clarke, Clive McDonnell, Michael Turner. 2018. The legal needs of small businesses 2013-2017. BMG Research. Available at: https://research.legalservicesboard.org.uk/news/latest-research-18/ [Accessed 07 October 2020]. 169 p.56. Kieran Larkin, Vicky Clarke, Clive McDonnell, Michael Turner. Ibid. 170 ComRes. 2019. Public Knowledge of and Confidence in the Criminal Justice System and Sentencing. A report for the Sentencing Council. Available at: https://www.sentencingcouncil.org.uk/wp-content/uploads/Public- Knowledge-of-and-Confidence-in-the-Criminal-Justice-System-and-Sentencing.pdf [Accessed 09 October 2020]. 171 Clive Coleman. 21 June 2019. “Sir Brian Leveson warns crimes are not being prosecuted”. BBC News. Article available at: https://www.bbc.co.uk/news/uk-48713039#:~:text=Sir%20Brian%20Leveson%2C%20who%20 retires,in%20modernising%20the%20justice%20system. [Accessed 12 October 2020]. 172 House of Commons Justice Select Committee. Ibid. 173 House of Commons Justice Select Committee. 2018. 12th Report of 2017-19 session – Criminal Legal Aid. HC 1069. Report available at: https://publications.parliament.uk/pa/cm201719/cmselect/cmjust/1069/1069.pdf [Accessed 09 October 2020]. 174 Emily Dugan. “This Leaked Report Reveals The Stark Warnings From Judges About Defendants With No Lawyer”. BuzzFeed. Article available at: https://www.buzzfeed.com/emilydugan/the-government-tried-to-conceal-this- testimony-from-judges [Accessed 09 Ocotber 2020]. 175 Rosa Ellis, Jonathan Ames. 03 February 2020. “Innocent are left with enormous bills after cutbacks in legal aid”. The Times. Article available at: https://www.thetimes.co.uk/article/innocent-are-left-with-enormous-bills-after- cutbacks-in-legal-aid-7ljqbpdrv [Accessed 09 Ocotber 2020]. 176 NAO. 2018. Early progress in transforming courts and tribunals. Report available at: https://www.nao.org.uk/ report/early-progress-in-transforming-courts-and-tribunals/ [Accessed 09 October 2020]. 150 § The State of Legal Services 2020 § Evidence Compendium
177 World Justice Project. 2020. Rule of Law Index 2020. Available at: https://worldjusticeproject.org/our-work/ research-and-data/wjp-rule-law-index-2020 [Accessed 22 July 2020] and previous editions available at: https:// worldjusticeproject.org/our-work/research-and-data/wjp-rule-law-index-2019/previous-editions-wjp-rule- law-index [Accessed 22 July 2020]. 178 The World Bank aggregates surveys of households and firms, commercial business information providers, non-governmental organisations and public sector organisations. Their Rule of Law indicator is an estimate that considers the quality of contract enforcement, property rights, the functioning of the police and the courts, and the likelihood of crime and violence. It is part of their Worldwide Governance Indicators. World Bank. 2019. Rule of Law. Worldwide Governance Indicators. TCdata360. Available at: https://info.worldbank.org/governance/wgi/ [Accessed 09 October 2020]. 179 p. 579. WEF. 2019. The Global Competitiveness Report 2019. Available at: https://www.weforum.org/reports/how- to-end-a-decade-of-lost-productivity-growth. [Accessed 22 July 2020]. p.585. WEF. 2018. The Global Competitiveness Report 2018. Available at: http://www3.weforum.org/docs/ GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf [Accessed 22 July 2020]. p.381. WEF. 2013-4. The Global Competitiveness Report 2013-14. Available at: http://www3.weforum.org/docs/ WEF_GlobalCompetitivenessReport_2013-14.pdf [Accessed 22 July 2020] 180 p. 67, 71. Cheryl Thomas. 2017. 2016 UK Judicial Attitude Survey; Report of findings covering salaried judges in England & Wales Courts and UK Tribunals. UCL. Available at: https://www.judiciary.uk/wp-content/ uploads/2017/02/jas-2016-england-wales-court-uk-tribunals-7-february-2017.pdf [Accessed 20 August 2019]. 181 p. 71. Fig. 69. Cheryl Thomas. 2017. Ibid. 182 p. 48, 49. European Network of Councils for the Judiciary (ENCJ). 2019. Independence and Accountability of the Judiciary: ENCJ Survey on the independence of Judges 2019. Available at: https://pgwrk-websitemedia.s3.eu- west-1.amazonaws.com/production/pwk-web-encj2017-p/Projects/ENCJ%202019%20Survey%20on%20 the%20Independence%20of%20judges.pdf [Accessed 23 July 2020]. 183 p. 84, 85, 87, 98, 91. ENCJ. Ibid. 184 p. 75, 76. ENCJ. Ibid.
6. A diverse and inclusive profession
185 Sundeep Aulahk et al. 2017. Mapping advantages and disadvantages: Diversity in the legal profession in England and Wales. SRA. Report available at: https://www.sra.org.uk/sra/how-we-work/reports/diversity-legal-profession/ [Accessed 09 October 2020]. 186 SRA.2019. Upholding Professional Standards 2017/18. Report available at: https://www.sra.org.uk/sra/how-we- work/reports/upholding-professional-standards-2017-2018/ [Accessed 09 October 2020]. 187 Neil Rose. 16 April 2020. “One in seven female solicitors suffer bullying or discrimination”.Legal Futures. Article available at: https://www.legalfutures.co.uk/latest-news/one-in-seven-female-solicitors-suffer-bullying-or- discrimination [Accessed 13 October 2020]. 188 BSB. 2016. Women at the Bar. Available at: https://www.barstandardsboard.org.uk/media/1773934/women_at_ the_bar_-_full_report_-_final_12_07_16.pdf [Accessed 13 October 2020]. 189 Thomas Connelly. 18 February 2020. “Over half of female lawyers have experienced or witnessed sexism at work”. Legal Cheek. Article available at: https://www.legalcheek.com/2020/02/over-half-of-female-lawyers- have-experienced-or-witnessed-sexism-at-work/ [Accessed 09 October 2020]. 190 ONS. 2019. Gender pay gap in the UK: 2019. Webpage available at: https://www.ons.gov. uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/ genderpaygapintheuk/2019 [Accessed 09 October 2020]. 191 House of Commons Library. March 2020. The Gender Pay Gap. Briefing paper available at:https:// commonslibrary.parliament.uk/research-briefings/sn07068/ [Accessed 09 October 2020]. 192 Data can be analysed here https://gender-pay-gap.service.gov.uk/ 193 Reporting requirements for 2019/20 were suspended due to Covid-19. 194 Stonewall says that the best estimate at the moment is that around 1 per cent of the population might identify as trans, including people who identify as non-binary. That would mean about 600,000 trans and non-binary people in Britain, out of a population of over 60 million. See https://www.stonewall.org.uk/truth-about- trans#:~:text=The%20best%20estimate%20at%20the,population%20of%20over%2060%20million 195 Stonewall. 2018. Stonewall reveals coming out at work still a problem. Press release available at: https://www. stonewall.org.uk/about-us/media-centre/media-statement/stonewall-reveals-coming-out-work-still-problem [Accessed 09 October 2020]. 196 Crossland Employment Solicitors. 2018.Transphobia rife among UK employers as 1 in 3 won’t hire a transgender person. Article available at: https://www.crosslandsolicitors.com/site/hr-hub/transgender-discrimination-in- UK-workplaces [Accessed 09 October 2020]. 197 Taken from SRA Diversity information https://www.sra.org.uk/sra/equality-diversity/key-findings/diverse- legal-profession/ [Accessed 09 October 2020]. The State of Legal Services 2020 § Evidence Compendium § 151
198 ONS, 2020. A09: Labour market status by ethnic group, August 2020. Available at: https://www.ons. gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/ labourmarketstatusbyethnicgroupa09 [Accessed 09 October 2020]. 199 Neil Rose. 19 June 2020. “SRA to launch project on BAME student underachievement”. Legalfutures. Article available at: https://www.legalfutures.co.uk/latest-news/sra-to-launch-project-on-bame-student- underachievement [Accessed 09 October 2020]. 200 BSB. Undated. Exploring differential attainment at BPTC and Pupillage. Paper available at: https://www. barstandardsboard.org.uk/uploads/assets/f69a9410-c170-4f82-b4b500d5b9e0df8a/Differential-Attainment- at-BPTC-and-Pupillage-analysis.pdf [Accessed 09 October 2020]. 201 NatCen. 2017. Barriers to training for the Bar: a qualitative study. BSB. Report available at: https://www. barstandardsboard.org.uk/uploads/assets/5fadd1cf-19b8-49df-bf2c25a32fa29fd2/Barriers-to-Training-for- the-Bar-research.pdf [Accessed 09 October 2020]. 202 BSB. June 2020. BPTC Key Statistics 2020: An analysis of students over three academic years. Report available at: https://www.barstandardsboard.org.uk/uploads/assets/3f953812-cb0e-4139-b9dcc76f085de4e2/BPTC-Key- Statistics-Report-2020-All-parts.pdf [Accessed 09 October 2020]. 203 Black Solicitors Network. 2017. Diversity League Table “The 10-year Study”. Available at: https://www. blacksolicitorsnetwork.co.uk/press-release-20-june-2017/# [Accessed 09 October 2020]. 204 Ruby McGregor Smith. 2017. Race in the workplace: The McGregor-Smith Review. Review available at: https://www. gov.uk/government/publications/race-in-the-workplace-the-mcgregor-smith-review [Accessed 09 October 2020]. 205 Catherine Baksi. 18 June 2020. “Leslie Thomas, QC: ‘If you can’t see there’s a problem, you’re part of it’”. The Times. Article available at: https://www.thetimes.co.uk/article/leslie-thomas-qc-if-you-cant-see-theres-a- problem-youre-part-of-it-2rmh0xrbw [Accessed 09 October 2020]. 206 Law Society. 2020. PC Holders Survey 2019. Available at: https://www.lawsociety.org.uk/topics/research/pc- holder-survey-2019 [Accessed 09 October 2020]. 207 BSB. 2016. Women at the Bar. Report available at: https://www.barstandardsboard.org.uk/media/1773934/ women_at_the_bar_-_full_report_-_final_12_07_16.pdf [Accessed 09 October 2020]. 208 BSB. Race Equality Taskforce. Webpage available at: https://www.barstandardsboard.org.uk/about-us/ equality-and-diversity/race-equality-taskforce.html#:~:text=Our%20Race%20Equality%20Taskforce%20 was,Equality%20and%20Access%20to%20Justice. [Accessed 09 October 2020]. 209 ONS Labour Force Survey data shows 27.7m people in paid employment in September to November 2019. A Commons Library briefing in August 2020 reports 4.1m disabled people in employment. https:// commonslibrary.parliament.uk/research-briefings/cbp-7540/ 210 City Disabilities. Undated. Should I disclose my disability to an employer? Available at: http://citydisabilities.org. uk/wp-content/uploads/2016/04/Should-I-disclose.pdf 211 SRA. 2019. How diverse are law firms? Webpage available at: http://www.sra.org.uk/solicitors/diversity-toolkit/ diverse-law-firms.page [accessed 13 June 2019]. 212 Natasha Hirst. 5 June 2018. Significant barriers for disabled legal professionals. Press release available at: http:// legallydisabled.com/2018/06/11/significant-barriers-for-disabled-legal-professionals/ [accessed 14 June 2019]. 213 Pp 12 - 14. Debbie Foster. Natasha Hirst. January 2020. Legally Disabled? The career experiences of disabled people working in the legal profession. Full report of findings and recommendations. Cardiff Business School, Cardiff University. Available at: http://legallydisabled.com/research-reports/ [Accessed 06 February 2020] 214 https://www.sra.org.uk/sra/how-we-work/reports/disability-workplace/ 215 The breakdown is 1.4% identify as gay or lesbian, 0.9% Bisexual, and 0.6 as other ONS, Sexual Orientation UK:2018 https://www.ons.gov.uk/peoplepopulationandcommunity/culturalidentity/sexuality/bulletins/ sexualidentityuk/2018 216 Government Equalities Office. 2019.National LGBT Survey: Summary report. Available at: https://www.gov.uk/ government/publications/national-lgbt-survey-summary-report/national-lgbt-survey-summary-report [Accessed 12 October 2020]. 217 Chaka Bachmann. Becca Gooch. 2018. LGBT in Britain: Work report. Stonewall. Report available at: https://www. stonewall.org.uk/system/files/lgbt_in_britain_work_report.pdf [Acccessed 12 October 2020]. 218 Marc Mason, Steven Vaughan. 2017. Sexuality at the Bar: An Empirical Exploration into the Experiences of LGBT+ Barristers in England & Wales. UCL. Report available at: https://westminsterresearch.westminster. ac.uk/download/2d666d9fb5a6dba5a7ba41a9f96b4d9997e1efcc6bc559df8ddde94ffc16b56d/211166/ sexuality_at_the_bar_sept2017.pdf [Accessed 12 October 2020]. 219 ONS. 2019. Religion in Great Britain by region, October 2017 to September 2018. Available at: https://www.ons.gov.uk/peoplepopulationandcommunity/culturalidentity/religion/ adhocs/009760religioningreatbritainbyregionoctober2017toseptember2018 [Accessed 12 October 2020]. 220 See A01. ONS. August 2020. Summary of labour market statistics. Available at: https://www.ons.gov. uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/ summaryoflabourmarketstatistics [Accessed 12 October 2020]. 221 Department for Business, Innovation and Skills and the Equality and Human Rights Commission. 2016. Pregnancy and Maternity-Related Discrimination and Disadvantage. First findings: Surveys of Employers and Mothers. Available at: https://www.equalityhumanrights.com/en/file/10516/download?token=P8gyXkUi [Accessed 12 October 2020]. 152 § The State of Legal Services 2020 § Evidence Compendium
222 CILEx. 2019. Department for Business, Energy and Industrial Strategy Consultation – “Extending redundancy protection for pregnant women and new parents”. A response by The Chartered Institute of Legal Executives (CILEx). Available at: https://www.cilex.org.uk/~/media/pdf_documents/main_cilex/policy_and_governance/consultation_ responses/cilex_submission_-_extending_redundancy_protection_for_pregnant_women_and_new_parents. pdf?la=en [Accessed 12 October 2020]. 223 Foreword. Social Mobility Commission. State of the Nation 2018-2019: Social Mobility in Great Britain. Available at: https://www.gov.uk/government/publications/social-mobility-in-great-britain-state-of-the-nation-2018- to-2019 [Accessed 1 July 2019]. 224 p.3, 9. Social Mobility Commission. Ibid. 225 Equality and Human Rights Commission. 2018. Is Britain Fairer? The state of equality and human rights, 2018. Report available at: https://www.equalityhumanrights.com/en/publication-download/britain-fairer-2018 [Accessed 12 October 2010]. 226 Civil Service. 2018. Measuring socio-economic background in your workforce: recommended measures for use by employers. Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/ attachment_data/file/786937/Measuring_Socio-economic_Background_in_your_Workforce__recommended_ measures_for_use_by_employers.pdf [Accessed 12 October 2010]. 227 Independent Schools Council. April 2020. ISC Census and Annual Report 2020. Available at: https://www.isc.co.uk/ research/annual-census/ [Accessed 12 October 2020]. 228 Caroline Henshaw. 15 November 2018. “UK’s private/state school wealth gap may be ‘biggest in the world’”. TES. Article available at: https://www.tes.com/news/uks-privatestate-school-wealth-gap-may-be-biggest-world [Accessed 12 October 2020]. 229 Neil Dymond-Green. 1 October 2018. “Is being the first in your family to attend university a sign of success of Widening Participation?” Data Impact Blog. UK Data Service. http://blog.ukdataservice.ac.uk/first-in-family- students/ [Accessed 12 October 2020]. 230 Neil Dymond-Green. Ibid. 231 Legal Cheek. 2015. “Law firms run Oxbridge recruitment targets as high as 50% of trainees, says diversity chief”. Legal Cheek. Article available at: https://www.legalcheek.com/2015/03/law-firms-run-oxbridge-recruitment- targets-as-high-as-50-of-trainees-says-diversity-chief/ [Accessed 12 October 2020]. 232 Success at school.org. Undated. Becoming A Barrister Could Cost You £127,0000. Available at: https:// successatschool.org/news/583/Becoming-a-barrister-could-cost-you-%C2%A3127-000#:~:text=To%20run%20 up%20expenses%20of,cost%20up%20to%20%C2%A319%2C000. [Accessed 12 October 2020]. 233 See: http://www.slgov.org.uk/what-can-it-cost-to-qualify-as-a-solicitor/ 234 This includes the Solicitors Qualifying Examination and Future Bar Training Programme. 235 CILEx. Undated. Indicative cost of qualifying as a Chartered Legal Executive. Available at: https://www.cilex.org.uk/ study/lawyer_qualifications/typical_costs [Accessed 12 October 2020]. 236 Social Mobility Commission. June 2020. Apprenticeships and social mobility: Fulfilling potential.Report available at: https://www.gov.uk/government/publications/apprenticeships-and-social-mobility-fulfilling-potential [Accessed 12 October 2020]. 237 ONS, Labour Force Survey and Annual Population Survey, 2019. 238 ONS. 2019. Families and the labour market, UK: 2019. Available at: https://www.ons.gov.uk/ employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/ familiesandthelabourmarketengland/2019 [Accessed 12 October 2020]. 239 ONS. 2019. Ibid. 240 The next 100 years. 2020. Coronavirus Impact Survey. Available at: https://next100years.org.uk/survey/ [Accessed 12 October 2020]. 241 ONS. July 2020. Coronavirus and the impact on caring. Available at: https://www.ons.gov. uk/peoplepopulationandcommunity/healthandsocialcare/conditionsanddiseases/articles/ morepeoplehavebeenhelpingothersoutsidetheirhouseholdthroughthecoronaviruscovid19lockdown/2020-07-09 [Accessed 12 October 2020]. 242 Carers UK. 2019. Fact and Figures. Webpage available at: https://www.carersuk.org/news-and-campaigns/ press-releases/facts-and-figures#:~:text=5%20million%20people%20in%20the,an%20older%20or%20 disabled%20relative. [Accessed 12 October 2020]. 243 Simon Lock. 10 September 2019. “Stress and Depression Rife as Almost One in Two Lawyers Experience Work- Related Mental Illness”. Law.com. Article available at: https://www.law.com/international-edition/2019/09/10/ stress-and-depression-rife-as-almost-one-in-two-lawyers-experience-work-related-mental-illness/?slretu rn=20200724093025 [Accessed 12 October 2020]. 244 The Law Society. 2019. PC Holder Survey 2019. Available at: https://www.lawsociety.org.uk/topics/research/pc- holder-survey-2019 [Accessed 12 October 2020]. 245 p. 6. 2019. The Law Society. 2019. Resilience and wellbeing survey 2019: Survey report. Junior Lawyers Division. Available at: http://communities.lawsociety.org.uk/Uploads/b/y/k/resilience-wellbeing-survey-report-2019. pdf. [Accessed 12 October 2020]. 246 Pp 6, 12, 21. LexisNexis. 2018. Stress in the Legal Profession: Problematic or Inevitable? Available at: https:// www.lexisnexis.co.uk/research-and-reports/stress-in-the-legal-profession-problematic-or-inevitable.html [Accessed 28 June 2019]. The State of Legal Services 2020 § Evidence Compendium § 153
247 p.3. Bar Council. 2018. Barristers’ Working Lives 2017: Third survey of barristers’ attitudes towards their working lives. A third survey of the Bar. Available at: https://www.barcouncil.org.uk/media/661503/working_lives_-_final.pdf [accessed 14 June 2019]. 248 LawCare. Undated. LawCare 2019 figures:More lawyers seeking help and calls about bullying continue to rise. Available at: https://www.lawcare.org.uk/news/lawcare-2019-figures-more-lawyers-seeking-help-and-calls- about-bullying-continue-to-rise [Accessed 12 October 2020]. 249 LexisNexis. July 2020. OMG or BAU? Bellwether 2020: Covid-19 and the Legal Industry. Report available at: https:// www.lexisnexis.co.uk/bellwether/covid-19-and-the-legal-industry.html [Accessed 12 October 2020]. 250 LSB. 2020. Coronavirus impact dashboard development. Dashboard available at: https://www.legalservicesboard. org.uk/coronavirus_impact [Accessed 12 October 2020]. 251 City Mental Health Alliance UK. 2020. Website available at: http://citymha.org.uk/ [Accessed 12 October 2020]. 252 Melanie Pritchard. “Moving mental health to the top of the legal agenda”. Law Gazette. Article available at: https://www.lawgazette.co.uk/wellbeing/moving-mental-health-to-the-top-of-the-legal-agenda/5104324. article [Accessed 12 October 2020]. 253 LexiNexis. 2019. The Bellwether Report 2019: Stress in the Legal Profession — Problematic or Inevitable? Available at: https://www.lexisnexis.co.uk/research-and-reports/stress-in-the-legal-profession-problematic-or-inevitable. html [Accessed 12 October 2020]. 254 Slaughter and May. 2020. Salary, funding and benefits. Webpage available at: https://www.slaughterandmay. com/careers/trainee-solicitors/the-training-contract/salary-funding-and-benefits/ [Accessed 12 October 2020]. 255 Mindful Business Charter. 2019. What is the charter? Webpage available at: https://mindfulbusinesscharter. com/#what-is-the-charter [Accessed 12 October 2020]. 256 MoJ. September 2020. Diversity of the judiciary:2020 statistics. Available at: https://www.gov.uk/government/ statistics/diversity-of-the-judiciary-2020-statistics [Accessed 12 September 2020]. 257 Chartered Legal Executives are only eligible by statute to apply for a limited number of judicial roles.
7. A successful and sustainable profession 258 LSB. 2020. Market structure dashboard. Available at: https://www.legalservicesboard.org.uk/market-structure- dashboard [accessed 23 March 2020] and regulator data supplied to LSB. 259 ONS. 27 April 2020. Workers in legal occupations in legal/accounting industries, and otherwise, 2011/12-18/19. Data request using Annual Population Survey data. 260 ONS. 2019. Section M, Non-financial business economy, UK: Sections A to S.Annual Business Survey. Data tables available at: https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/datasets/ uknonfinancialbusinesseconomyannualbusinesssurveysectionsas [Accessed 15 April 2020]. 261 Jomati Consultants LLP. 2020. UK Law Firm Mergers. Webpage available at: http://jomati.com/uk-mergers [Accessed 16 April 2020]. 262 See for example, Mark A. Cohen. “Are Law firms Becoming Obsolete?”. Forbes. Article available at: https://www. forbes.com/sites/markcohen1/2017/06/12/are-law-firms-becoming-obsolete/#1a6dea2264d3 [Accessed 21 August 2020] and Jonathan T. Molot. 2015. “What’s Wrong With Law Firms? A Corporate Finance Solution to Law Firm Short-Terminsm”. In Southern California Law Review. 88 (1) pp.1-42. Article available at: https:// southerncalifornialawreview.com/wp-content/uploads/2018/01/88_1.pdf [Accessed 21 August 2020]. 263 Hannah Wootton. 14 August 2019. “Legal young guns flee outdated partnership model”.Financial Review. Article available at: https://www.afr.com/companies/professional-services/legal-young-guns-flee-outdated- partnership-model-20190814-p52h0k [Accessed 21 August 2020], 264 Greater Birmingham Chambers of Commerce. 28 October 2019. LLP model beginning to look outdated in legal sector. Article available at: https://www.greaterbirminghamchambers.com/latest-news/news/2019/10/28/llp- model-beginning-to-look-outdated-in-legal-sector/ [Accessed 21 August 2020] 265 The Lawyer. 20 September 2019. “Travelers roundtable: change must come to the legal sector… and come quickly”. Available at: https://www.thelawyer.com/traditional-law-firm-model-must-change-travelers-rt/ [Accessed 21 August 2020]. 266 p. 3. Thomson Reuters. 2020. State of the Legal Market in the UK: Challenges to Growth and Sustainability. Report available at: https://legalsolutions.thomsonreuters.co.uk/en/trends-insights/reports/state-of-the-legal- market-uk-report-2020.html [Accessed 21 august 2020]. 267 p. 6. PwC. 2019. Adapting to a new world: PwC Law Firms’ Survey 2019. Report available at: https://www.pwc. co.uk/industries/business-services/law-firms/survey.html [Accessed 21 August 2020]. 268 p. 1, p. 4. Thomson Reuters Legal Executive Institute. 2019. Alternative Legal Service Providers 2019: Fast Growth, Expanding Use and Increasing Opportunity. Available at: http://www.legalexecutiveinstitute.com/alsp- report-2019/ [accessed 21 June 2019]. 154 § The State of Legal Services 2020 § Evidence Compendium
269 Competition and Markets Authority. 18 April 2019. CMA recommends shake-up of UK audit market. Press release available at: https://www.gov.uk/government/news/cma-recommends-shake-up-of-uk-audit-market [Accessed 19 July 2019]. House of Commons Business, Energy and Industrial Strategy Committee. 7 June 2019. Future of Audit – Government’s response ‘in danger of kicking vital reforms into the long grass’. Statement available at: https://www. parliament.uk/business/committees/committees-a-z/commons-select/business-energy-industrial-strategy/ news-parliament-2017/audit-govt-response-report-published-17-19/ [accessed 19 July 2019]. 270 p. 1, p. 4. Thomson Reuters Legal Executive Institute .2019. Ibid. P. 13. Thomson Reuters Legal Executive Institute .2020. State of the Legal Market in the UK: Challenges to Growth and Sustainability. Report available at: https://www.thomsonreuters.com/en/press-releases/2020/ january/2020-report-on-the-state-of-the-legal-market-from-georgetown-law-and-thomson-reuters-legal- executive-institute.html [Accessed 20 August 2020]. 271 Invicta Law. 2017. We’re not like other local authority ABSs. Webpage available at: https://invicta.law/news/not-like- local-authority-abss 272 Neil Rose. 14 March 2019. “First ‘teaching law firm’ celebrates benefits to students and clients”.Legalfutures. Available at: https://www.legalfutures.co.uk/latest-news/first-teaching-law-firm-celebrates-benefits-to- students-and-clients And see https://www.ntu.ac.uk/c/legal-advice-centre [accessed 12 June 2019]. 273 Nick Hilborne. “Exclusive: Domestic violence charity sets up ABS to bridge legal aid gap”. Legal Futures. Available at: https://www.legalfutures.co.uk/latest-news/exclusive-domestic-violence-charity-sets-up-abs-to-bridge- legal-aid-gap [Accessed 12 August 2019] 274 Pp.3-4. LSB. June 2017. Evaluation: ABS and investment in legal services 2011/12-2016/17 – Summary. Available at: https://www.legalservicesboard.org.uk/research/reports/evaluation-abs-and-investment-in-legal-services [Accessed 20 August 2020]. 275 Dan Bindman. 2 December 2019. “Investors “eager to back law firms” as regulators boost appeal”.Legalfutures. Article available at: https://www.legalfutures.co.uk/latest-news/investors-eager-to-back-law-firms [Accessed 21 August 2020]. 276 John Hyde. 21 May 2019. “Listed law firm expect profits to double in debut year”.The Law Society Gazette. Available at: https://www.lawgazette.co.uk/practice/listed-law-firm-expects-profits-to-double-in-debut- year/5070342.article [Accessed 14 October 2019]. Gateley PLC. 28 June 2015. Announcement of Intention to Float AIM. Press Release available at: https://gateleyplc.com/insight/press-releases/announcement-of- intention-to-float-on-aim/ [Accessed 14 October 2019]. 277 Andrew Hore. 21 March 2019. “DWF IPO: Are these AIM law firms better value?”.Interactive Investor. Available at: https://www.ii.co.uk/analysis-commentary/dwf-ipo-are-these-aim-law-firms-better-value-ii507924 [Accessed 14 October 2019]. 278 Neil Rose. 10 July 2019. “Private equity firm buys two leading conveyancing practices”.Legal Futures. Available at: https://www.legalfutures.co.uk/latest-news/private-equity-firm-buys-two-leading-conveyancing-practices [Accessed 12 August 2019]. 279 Rachel Rothwell. 14 January 2019. “Heavy-hitters take AIM at litigation”. The Law Society Gazette. Available at: https://www.lawgazette.co.uk/commentary-and-opinion/heavy-hitters-take-aim-at-litigation/5068836.article [accessed 12 June 2019]. 280 ONS. 7 November 2019. 68.1 Legal activities, Section M in Annual Business Survey – 2018 Provisional Results. Available at: https://www.ons.gov.uk/releases/ nonfinancialbusinesseconomyukannualbusinesssurvey2018provisionalresults [Accessed 13 October 2020]. 281 p.6. January 2020. KPMG. Contribution of the UK Legal Services Sector to the UK economy. Report for the Law Society available at: https://www.lawsociety.org.uk/support-services/research-trends/economic-contribution- legal-services-sector-report/ [Accessed 03 April 2020]. For example, turnover generated through legal services supply chain activity and spending of wages in the economy 282 p. 11. TheCityUK. 2019. Legal Excellence. Internationally Renowned; UK Legal Services 2019. Report available at: https://www.thecityuk.com/research/legal-excellence-internationally-renowned-uk-legal-services-2019/ [Accessed 17 April 2020]. 283 LSB analysis of SRA turnover data provided July 2020. 284 Pp. 4, 8, 37. RBS. 2019. 2019 Legal Benchmarking Report. 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