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Under the proposals, practice fees and licensing administration charges would rise by 3% to reflect inflation, while individual licence fees would remain frozen for a tenth consecutive year.
CLC says annual reviews of fees ensure that enough revenue is raised to cover its forecasted expenditure. Thanks to its proactive compliance strategy – which focuses on collaboration with firms to uphold high standards and protect clients – the regulator has managed to significantly reduce the average practice fee rate over time, from 1.25% of turnover in 2015–16 to just 0.58% under the latest proposals.
A 6% increase in contributions to the Compensation Fund is also being considered. The Fund safeguards consumers who suffer losses through no fault of their own. The rise, we are told, is intended to keep pace with inflation and reflect increased demands, particularly from firms that have not engaged constructively with the CLC’s compliance processes.
Practice fees and Compensation Fund contributions are calculated on a sliding scale based on turnover. Although these bands are reviewed annually, no changes are proposed this year.
The CLC reports continued robust growth across its regulated community. In 2021, 78 practices had turnovers under £500,000; today, that number has fallen to 38. Average turnover per practice has grown from £1.2m in 2021 to £2m in 2025.
This growth reflects the strong appeal of CLC regulation, particularly among conveyancing and probate practices. The average CLC-regulated practice now significantly outperforms its counterparts regulated by the Solicitors Regulation Authority (SRA) in terms of turnover — a testament to the benefits of CLC’s specialist approach.
Sheila Kumar, chief executive of the CLC, said: “The CLC has worked hard over several years to absorb rising costs and reduce the financial burden on practices, while maintaining high standards of consumer protection.
“We believe the fee proposals set out in this consultation are fair and proportionate and in line with our commitment to supporting a thriving conveyancing and probate industry which is responsive to the needs of its clients.”
The consultation will run until 8 August, following which the CLC will consider all responses before submitting its financial plan to the Legal Services Board for approval.
To read the full consultation document click here.
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