The Guardian
Study shows cheapest firm charged £150 for uncontested divorce involving children, while the most expensive was £17,000
The study adds credence to judges’ claims that high fees and legal aid cuts tip the scales of justice firmly in favour of the wealthy. Photograph: Reuters
An investigation into lawyers’ fees has found major disparities between firms, with the cheapest charging £250 for conveyancing and the most expensive £3,200 for precisely the same freehold sale.
The startling figures have emerged from research commissioned by the Legal Services Board (LSB), which recommends consumers shop around and consider hiring solicitors from outside London and the south-east, where legal services are more expensive.
The survey has been produced ahead of what is expected to be a critical report by the Competition and Markets Authority (CMA) due in the coming months into the affordability of legal services. The data is likely to reinforce claims that there is not enough competition within the sector.
Senior judges have repeatedly identified the high cost of lawyers’ fees and cuts to legal aid as being responsible for a lack of access to justice for those who are not wealthy.
The LSB investigation found that fixed fees, rather than the traditional procedure of allowing lawyers to charge by the hour, are becoming far more more common.
Other wide disparities included costs for an uncontested divorce involving children, where the cheapest firm charged £150 and the most expensive £17,000.
Another feature that appeared repeatedly was that law firms that display prices on their websites are generally cheaper than those that do not.
Neil Buckley, the LSB’s chief executive, said: “This research demonstrates that it really does pay to shop around. For many consumers, substantial savings on commonly purchased legal services – especially those which do not require face to face delivery – can be made by searching the market across England and Wales.
“For consumers in the south-east in particular, our research shows that a premium may be paid for direct, locally sourced legal services of the type covered by this report.
“The legal services market is changing and we are seeing numerous signs of innovation as new providers enter the market and existing providers develop their services. But there is still some way to go before all consumers can be confident of finding the legal service they need at a price they can afford.
“Firms who are yet to adapt will have to look at what their competitors are providing. This is a market with huge potential for delivering a better deal for consumers.”
If price comparison websites were to open up the market, Buckley suggested, they could also include quality assessments for each firm.
The survey was based on 1,506 telephone interviews carried out between November 2015 and January 2016. Respondents were asked to provide prices on specific scenarios within ditinct legal areas: conveyancing, divorce or wills, lasting power of attorney and estate administration.
According to the LSB, the legal profession in England and Wales comprises 142,109 solicitors, 326 alternative business structures, 15,237 barristers, 7,848 chartered legal executives and 5,678 other individuals operating in other areas such as conveyancing.
The sector had a turnover of £32bn last year, a 23% increase in cash terms since 2012.
