Prime Highlights:

• Equity partners at UK law firms now earn an average of £307,000, a 42% rise over five years.
• The growth is driven by higher demand for legal services, especially in litigation, which performs well during economic stress.

Key Facts:

• Average UK worker salaries rose by 18% to £30,000, far below the rise for equity partners.
• Self-employed barristers’ income fell from £188,000 in 2021/22 to £180,000 in 2022/23 due to more cases being settled outside court and lower legal aid payments.

Key Background

Equity partners at UK law firms are earning more than ever, with average pay reaching £307,000 a year, a 42% increase in five years, according to research by Bowmore Wealth Group. This rise is much higher than the average UK worker’s salary, which went up by 18% to £30,000 over the same period.

The growth can be attributed to an upsurge in the demand for legal services, particularly during a bad time in the economy, when many functions, such as litigation, can perform better. This has aided the law firm partners to earn more, even during these times of uncertainty.

Firm profits were boosted last year by fat interest earnings on client money, said the Law Society’s latest survey of financial results. Data from HM Revenue & Customs reviewed by Bowmore shows that the average income for equity partners has been steadily growing since 2018/19, when it was £216,000 per year.

However, not all legal professionals are seeing growth. Self-employed barristers’ pay is slowly dropping, falling from £188,000 in 2021/22 to £180,000 in 2022/23. Bowmore’s CEO, Marc Incledon, said this is because more cases are being settled outside of court, alternative dispute resolution is being used more, and legal aid payments are lower.

Overall, the news shows that being an equity partner in a law firm remains very profitable. Partners can earn much more than the average worker because they are enjoying the robust demand for their services. Meanwhile, the entry of the barristers and other legal players might have to adapt to the shift in the cases and their funding.

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