Consumer Legal Association questions justification for SRA’s 29% funding increase

PRESS RELEASE

RELEASE: Immediately
DATE: 13 November 2026

“Consumer Legal Association questions justification for SRA’s 29% funding increase”

The Consumer Legal Association (CLA) has questioned whether the Solicitors Regulation Authority’s (SRA) 29% funding increase is justified, given recent criticism of the regulator’s performance and growing financial pressures on law firms.

The SRA’s funding requirement will rise by £25 million to £111.5 million in 2026/27, supporting additional investigations, operational improvements and the rebuilding of reserves.

The SRA has faced enforcement action by the Legal Services Board (LSB) over shortcomings in its regulatory oversight, while citing a 45% rise in reports of potential misconduct as part of its case for more funding. For this reason, the CLA calls on the SRA to demonstrate how additional funding will address these concerns and improve regulation.

“We welcome the SRA’s plans to strengthen its operations and recognise the need for effective regulation. However, given the criticism it has faced, the regulator must explain why an increase of this scale is justified and what firms and consumers can expect in return,” said David Whitmore, Chairperson of the CLA.

“Concerns about misconduct must be addressed, but reputable firms should not be made to feel responsible for problems elsewhere in the regulatory system.”

The increase comes at a particularly difficult time for claimant firms. “The whiplash reforms and extension of fixed recoverable costs have already placed significant financial pressure on claimant firms - compounded by rising operating expenses and persistent court delays. Any increase in regulatory fees must therefore be justified by clear improvements in oversight, accountability and engagement,” Whitmore added.

The CLA has raised concerns directly with the SRA and is developing industry standards and a proposed self-certification process with members. It remains committed to constructive dialogue and proportionate, evidence-led regulation that protects consumers while recognising the pressures facing well-run claimant firms.

-ENDS-

Media contact
Cayla Murray-Ridgway
Public Affairs and Policy Adviser
Consumer Legal Association
cmurrayridgway@consumerlegal.org.uk
+44 7304 490186