Legal sector sees strong growth annual survey finds

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Law firms in England and Wales experienced rapid, sector-wide growth in 2025, according to the Law Society’s new annual Financial Benchmarking Survey.*

The UK legal sector is a world-leading economic powerhouse generating £60 billion annually and employing about half a million people. It provides the necessary legal certainty for other sectors to innovate, invest and grow. Law Society’s research shows that the legal sector remains resilient even in these uncertain times, providing stability and support to businesses and communities across England and Wales. 

Law firms’ average earnings grew by 11.2% in 2025, compared with a 6.1% increase in 2024. This acceleration marks the highest rate of growth in more than 15 years. Growth was widespread across the sector, with 85% of firms reporting year on year fee growth in 2025, including more than half seeing growth of 10% or more.

The legal sector continues to be a significant employer. The number of legal professionals across participating firms increased by 2.3%, while productivity also improved for a second consecutive year. 

The report highlights a continuing need to invest more in certain areas.

For example, technology remains key as well as investing in support staff. 

Mark Evans, president of the Law Society of England and Wales, said:

“Despite ongoing external uncertainty and an increased need to invest in new technology, law firms are seeing strong growth. The legal sector remains healthy and resilient. 

“Solicitors continue to support clients, businesses and communities while heavily contributing to the UK’s economy. With the right support and investment, England and Wales can continue to lead the world as a renowned legal centre.”

Key findings from the Financial Benchmarking Survey include:

• median practice fee income increased by 11.2%, compared with 6.1% in 2024.
• 85% of firms reported year‑on‑year fee growth in 2025, with 55% seeing growth of 10% or more.
• total fee income across participating firms exceeded £1.2bn, equating to an average of £9.9m per practice.
• total median salary costs fell slightly as a proportion of fee income to 63.9%.
• non‑salary overheads fell as a share of income to 28.4% from 31.0% in 2024, with median overhead costs per fee earner broadly stable.
• the number of fee earners increased by 2.3%, reflecting sustained demand for legal services.
• lock up days, which is the time it takes to collect payments, fell from 146 days to 134 days in 2025. While this still represents just over four months between being appointed and getting paid, the report notes this is a clear improvement.
• while overall overheads fell as a share of income, the report highlights a continuing need to invest more in certain areas. For example, technology remains a key area of investment as well as support staff.
• non salary overheads fell as a share of fee income to 28.4%, down from 31.0% in 2024

Notes to Editors

**The Financial Benchmarking Survey 2026 provides an overview of the financial performance of the legal sector and is written and produced by the legal team of Hazlewoods LLP for the Law Society Leadership and Management Section and sponsored by Lloyds Bank Commercial Banking.