Average takings drop 12% as profession feels pain of cuts
Barristers’ average income has fallen 12% in the last two years—from £123,000 to £108,000.
The figures, gathered by finance provider LDF, mean many may struggle to meet their 31 July bill deadline. The July bill is a payment on account for self-employed persons, usually equal to half of the previous year’s tax bill.
The average income may seem very generous indeed to many barristers. Junior criminal counsel, in particular, have been hard hit by cuts to legal aid fees. A 30% reduction in fees for Very High Cost Cases has led to a boycott by criminal barristers, which resulted in the high-profile stay of a multi-defendant fraud trial at Southwark Crown Court last month (R v Crawley). The case has since been ordered to continue.
Junior counsel in criminal cases often earn less than £28,000—sometimes as low as £14,000—once costs such as chambers rent are deducted.
According to LDF, a 19% rise in new entrants to the profession—by an extra 2,000 to 13,000 in the two years leading up to 2011/2012—has contributed to a decrease in workload. A combination of fixed fees for immigration, asylum and other areas of legally aided work, and the removal of legal aid completely from large swathes of civil work, has added to barristers’ woes.
Peter Alderson, LDF managing director, says: “As well as the cuts to legal aid meaning there is less work available for barristers, the Legal Aid Board is notoriously slow to pay them for their work, a big problem for barristers relying on quick payment to cover their bills. Late paying clients are also proving a real problem for barristers, which means a barrister’s cash-flow can hit extreme peaks and troughs throughout the year—if a tax bill hits during a trough, many barristers could find their backs against a wall.”
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