Interest on client money turbocharged law firm profits last year, but solicitors need to ‘wean themselves’ off an income stream that may soon dry up.
That is a key message of this year’s Law Society Financial Benchmarking Survey, one of the sector’s most respected annual bellwethers.
Median net profit per equity partner climbed 20.7% in 2023-24 to £249,000, the second-biggest annual rise for at least 15 years after the pandemic outlier of 2021. More than £50,000 of that surplus was contributed by client interest.
Total interest receipts soared 150% from £28m in 2023 to £69.5m, an average of nearly £500,000 per firm.
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