Law Society warns higher minimum wage could discourage students from costly legal careers
The UK’s upcoming minimum wage increase could make students rethink pursuing a career in law, as many smaller firms pay salaries that barely exceed the new minimum, the Law Society has warned.
Under Chancellor Rachel Reeves’ forthcoming Budget, the annual salary for a full-time minimum wage worker is set to rise from £25,376 to £26,416. The increase has been welcomed by millions of low-paid workers, but it has also reignited debate about the financial viability of professional careers such as law, where starting pay at small firms can be little higher than the minimum wage.
Speaking to the Financial Times, several business leaders warned that the narrowing pay gap between graduate and non-graduate roles could make young people less willing to take on university debt especially those from lower socio-economic backgrounds.
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One executive told the newspaper: “Why would young people take on £45,000 of student debt if they can earn the same stacking shelves?”
Law Society vice-president Brett Dixon said the issue risked deterring talented students from entering the profession altogether. “When a newly qualified solicitor in a small firm earns barely more than the minimum wage, graduates in entry-level jobs are likely to lose interest in pursuing a career in the legal sector,” he said. “Especially considering the long hours needed in this field, legal careers may not seem attractive any more.”
The Society warned that the situation could worsen as smaller practices struggle to keep pace with wage increases while absorbing other rising costs, including higher national insurance contributions and the government’s planned ‘day one’ employment rights.
The Solicitors Qualifying Examination (SQE) has also become a financial hurdle for many aspiring lawyers, as candidates must self-fund training courses costing thousands of pounds before entering practice.
Data published by the Institute of Student Employers (ISE) shows that while the median graduate starting salary across all professions is £32,000, entry-level law roles average close to £50,000, a figure skewed by the large salaries offered by City firms.
At the upper end of the legal market, US-headquartered firms continue to dominate pay tables. The Legal Cheek Firms Most List shows that Davis Polk & Wardwell, Milbank, and Sullivan & Cromwell each pay their first-year trainees around £65,000, placing them far above most UK firms.
By contrast, trainees at smaller regional practices often earn only slightly above the statutory minimum. The Financial Times reported that some firms pay first-year solicitors near-minimum wages despite long working hours and significant qualification costs.
However, the ISE data also indicated that legal graduates enjoy the highest pay growth of any professional field, with an average 86% increase over the first three years of employment, taking average earnings to around £90,000.
This steep rise reflects the profession’s structured career trajectory, but commentators warn it may not offset the barriers facing those entering the field. As firms face growing wage and compliance pressures, recruiters predict that many employers will reduce trainee intake numbers, creating fewer opportunities for graduates.
A FTSE 100 chair told the Financial Times that employing young graduates had become a “high-risk venture”, as firms balance increased costs against uncertain returns.
Despite strong long-term prospects in the sector, the Law Society said the government’s minimum wage policy risked discouraging a generation of potential solicitors from joining the profession. Dixon added that ensuring fair and sustainable pay across all firms, not just the elite, would be essential to maintaining access and diversity within the legal workforce.