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Representative body says Legal Ombudsman should not take on extra costs disputes without capacity and specialist expertise
The Law Society has backed reform of solicitors’ costs rules but warned that any changes must be based on robust evidence and remain fair to both clients and solicitors.
The warning comes in response to a Civil Justice Council consultation on reforming Part III of the Solicitors Act 1974, which governs solicitor and own-client costs. The Law Society said it had spoken to members to inform its response to the consultation. The consultation is examining whether the existing framework should be modernised, including how disputes over solicitor-own client costs should be dealt with in future.
The Law Society said the current proposals were not supported by sufficient evidence about how the costs regime operates in practice. It warned that, without better data, it was difficult to assess whether the proposed reforms were necessary, proportionate or workable.
A central concern is the proposal to divert more costs disputes to the Legal Ombudsman. The Law Society said the ombudsman lacked the capacity, resources and specialist expertise needed for a significantly expanded role.
Brett Dixon, vice president of the Law Society, said: “We support reforming solicitors’ costs in the Solicitors Act 1974 and hope that the changes will deliver a clearer, simpler and more modern system that is fair to both solicitors and clients. This is a pivotal opportunity to reform a system that is no longer fit for purpose.
“However, the proposed reforms must be based on robust evidence. There is currently inadequate data about how the current costs regime operates in practice, making it difficult to assess whether the proposals are necessary, proportionate or workable.”
Dixon said the Legal Ombudsman had been “battling a backlog of cases for years” and had “consistently failed to deliver its core statutory function, a speedy resolution service”.
He added: “These proposals will add to LeO’s workload and may not be feasible. The Ombudsman must continue to focus on meeting consumer demand and improving its performance before taking on additional responsibilities.”
The CJC consultation is considering reforms to the regime for solicitor and own-client costs, including the distinction between contentious and non-contentious costs, possible primary legislative reform, a possible general order under section 56 of the Solicitors Act 1974 and a potential costs regime for online digital portals.
The Law Society said any new regime must keep pace with changes in legal practice, including the use of technology and artificial intelligence, litigation funding, unbundled legal services and alternative dispute resolution.
Dixon said: “The CJC’s proposals are well-intentioned, but any reforms must keep pace with the rapid changes taking place across the legal profession.
“Solicitors and clients are using technology and AI, while the delivery of legal services is expanding via unbundled legal services and alternative forms of dispute resolution. Any reforms must keep up with this rapid pace of change.
“We look forward to continuing to work with the CJC on behalf of our members to ensure any reforms are workable in practice.”
The consultation closes on 16 July 2026. The Law Society said reform was an important opportunity to create a clearer and more modern costs system, but warned that proposals which overload the ombudsman or lack an evidence base risk undermining the aim of fair and effective dispute resolution.