Inflation busting
Fees charged by the UK’s largest law firms have increased by a hefty 40% over the past five years, according to a new industry report.
In 2024, the average hourly rate charged by the top 10 UK-headquartered law firms by revenue was £449, up from £321 in 2019. The increase was 14% for firms ranked 11-25, raising the average hourly rate to £325, 23% for firms ranked 26-50, bringing it to £280, and 24% for firms ranked 51-110, reaching £247.
The report, compiled by accountancy giant PwC, attributes much of the increase to inflation (roughly 25% over the same period) and a rise in billable hours amid a buoyant deals and litigation markets.
It also highlighted the intense competition for talent between UK and US firms in the City, which has driven salaries to soar across junior lawyer ranks. The Legal Cheek Firms Most List 2025 shows all five Magic Circle firms now offer newly qualified (NQ) solicitors a salary of £150,000, while top-paying US firms provide pay exceeding £175,000.
Elsewhere in the report, now in its 33rd year, nearly 90% of the top 100 UK law firms have adopted or are trialing GenAI tools, up from 55% in 2023. Microsoft Copilot is the most widely implemented, with other firms also using tools like Harvey, CaseText, and Spellbook.
Firms identified cyber threats as the leading growth risk, prompting higher security spending across all levels within the top 50.
