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Law graduates hit by stiff competition, legal aid cuts and falling crime Law graduates hit by stiff competition, legal aid cuts and falling crime
(about 9 hours later)
Samuel Clague completed his law studies four years ago. The solicitor's training contract he so eagerly pursued evaded his grasp, so he established an agency to help those similarly qualified find work. He already has 10,000 aspiring lawyers on his books. Samuel Clague completed his law studies four years ago. Then, when the solicitor's training contract he had eagerly pursued evaded his grasp, he established an agency to help those similarly qualified find work. He already has 10,000 aspiring lawyers on his books.
In a country where there are as many as 200,000 lawyers – about one in 300 of  the population – there may be a surplus of tens of thousands of highly educated applicants.In a country where there are as many as 200,000 lawyers – about one in 300 of  the population – there may be a surplus of tens of thousands of highly educated applicants.
Burdened with crumpled expectations and large debts, sometimes of more than £50,000, acquired through course fees and living expenses, many find work as paralegals earning less than £20,000 a year with few prospects for promotion. By contrast, solicitors in the City of London may start on £38,000 and within two years can be earning £90,000.Burdened with crumpled expectations and large debts, sometimes of more than £50,000, acquired through course fees and living expenses, many find work as paralegals earning less than £20,000 a year with few prospects for promotion. By contrast, solicitors in the City of London may start on £38,000 and within two years can be earning £90,000.
Clague studied economics and business at Durham University. He graduated in 2008 then borrowed £25,000 to do law conversion studies – essential for those whose first degree was not law – and for the legal practice course (LPC) needed to become a solicitor.Clague studied economics and business at Durham University. He graduated in 2008 then borrowed £25,000 to do law conversion studies – essential for those whose first degree was not law – and for the legal practice course (LPC) needed to become a solicitor.
But on graduation, two years later, he discovered there were not enough training contracts and that he had failed to secure a job.But on graduation, two years later, he discovered there were not enough training contracts and that he had failed to secure a job.
"I wanted to be a solicitor. If you spend that much you want a return," he said. "I went to admission days and did tests but never quite got over the line. There's a huge backlog of well-qualified candidates working as paralegals and still looking to become solicitors.""I wanted to be a solicitor. If you spend that much you want a return," he said. "I went to admission days and did tests but never quite got over the line. There's a huge backlog of well-qualified candidates working as paralegals and still looking to become solicitors."
A year later, he set up a recruitment agency, the Stephen James Partnership, to help qualified lawyers, and was stunned when graduates and law firms came in droves.A year later, he set up a recruitment agency, the Stephen James Partnership, to help qualified lawyers, and was stunned when graduates and law firms came in droves.
"We have 10,000 people registered. I met one person who completed their LPC 10 years ago and is still looking for a training contract," he said. "The situation is even worse for those trying to become barristers. I have spoken to people who have first and upper second class degrees from Oxbridge and can't get a pupillage. There's a huge oversupply of law graduates and paralegals, so the firms are able to depress wages unless you get into a specialist area. We see people with £65,000 of debt. It's a tough place to be for a lot of people." "We have 10,000 people registered. I met one person who completed their LPC 10 years ago and is still looking for a training contract," he said. "The situation is even worse for those trying to become barristers. I have spoken to people who have first- and upper-second-class degrees from Oxbridge and can't get a pupillage. There's a huge oversupply of law graduates and paralegals, so the firms are able to depress wages unless you get into a specialist area. We see people with £65,000 of debt. It's a tough place to be for a lot of people."
Are there too many lawyers? Chris Grayling, the justice secretary, thinks so. In October he told the justice select committee that there was an "oversupply" and that too many people were being trained. The last Labour justice secretary, Jack Straw, made similar comments in 2010. Are there too many lawyers? Chris Grayling, the justice secretary, thinks so. In October he told the justice select committee there was an oversupply and too many people were being trained. The last Labour justice secretary, Jack Straw, made similar comments in 2010.
Certainly, more people are qualifying in the profession while legal aid fees contract, crime falls and competition pressures from deregulation lead to amalgamations. Many more law firms closed last year than opened.Certainly, more people are qualifying in the profession while legal aid fees contract, crime falls and competition pressures from deregulation lead to amalgamations. Many more law firms closed last year than opened.
The surplus is blamed partly on an excess of university courses – 20,070 students accepted to read law in 2013, though not all intend to become lawyers – and partly on legal practice courses and conversion schemes that prepare graduates for life as a solicitor. The surplus is blamed partly on an excess of university courses – 20,070 students were accepted to read law in 2013, though not all intend to become lawyers – and partly on legal practice courses and conversion schemes that prepare graduates for life as a solicitor.
At the same time, Russian oligarchs, Saudi princes and Swiss bankers bring their disputes to the court rooms of the Rolls Building in central London in increasing numbers. The government is promoting the UK as a global law centre. At the same time, Russian oligarchs, Saudi princes and Swiss bankers bring their disputes to the courtrooms of the Rolls Building in central London in increasing numbers. The government is promoting the UK as a global law centre.
Last year more than 75% of litigants in the commercial court came from abroad. Skilled British lawyers are needed to develop what is turning into a massive export earner for the Treasury.Last year more than 75% of litigants in the commercial court came from abroad. Skilled British lawyers are needed to develop what is turning into a massive export earner for the Treasury.
There is also a largely unmet domestic need for lawyers to advise clients on housing, debt and benefit claims that are no longer supported by legal aid. Advice on the law is desperately needed, but no longer extensively subsidised or affordable.There is also a largely unmet domestic need for lawyers to advise clients on housing, debt and benefit claims that are no longer supported by legal aid. Advice on the law is desperately needed, but no longer extensively subsidised or affordable.
Guy Beringer, chairman of the Legal Education Foundation and a former partner at City law firm Allen & Overy, believes the number of lawyers in the commercial sector is about to increase. "Most people think there's a structural change in the legal profession in the sense that demand for lawyers has peaked. I still think it will grow in the commercial [sector]. The recession meant a diminution of trade, but we are about to enter a period of economic growth." Increased regulation meant a greater need for in-house lawyers. Beringer added: "So you are left with whether you want to artificially constrain [the intake]. There has been talk of having aptitude tests or filters." Guy Beringer, chairman of the Legal Education Foundation and a former partner at City law firm Allen & Overy, believes the number of lawyers in the commercial sector is about to increase. "Most people think there's a structural change in the legal profession in the sense that demand for lawyers has peaked. I still think it will grow in the commercial [sector]. The recession meant a diminution of trade, but we are about to enter a period of economic growth." Increased regulation, he said, meant a greater need for in-house lawyers. Beringer added: "So you are left with whether you want to artificially constrain [the intake]. There has been talk of having aptitude tests or filters."
Technology could allow more legal work to be devolved to paralegals, he suggested. "There will have to be low-cost ways of providing services and that's going to require a different breed of lawyers."Technology could allow more legal work to be devolved to paralegals, he suggested. "There will have to be low-cost ways of providing services and that's going to require a different breed of lawyers."
Nigel Savage, who in April retired as president of the University of Law, the largest provider of LPC courses, agreed: "I've been doing this for 30 years and there have been periods when there's been too few and periods of oversupply. What has happened recently is that the market has corrected itself.Nigel Savage, who in April retired as president of the University of Law, the largest provider of LPC courses, agreed: "I've been doing this for 30 years and there have been periods when there's been too few and periods of oversupply. What has happened recently is that the market has corrected itself.
"Where you have people saying there are too many lawyers, it puts people off doing law. And there's a danger of it leading to a shortage. Law is very diverse. English law oils the whole of global commerce. It's a great boom. There have been chambers opening up in Geneva, Hong Kong, Singapore. The commercial market is beginning to do well as the economy picks up.""Where you have people saying there are too many lawyers, it puts people off doing law. And there's a danger of it leading to a shortage. Law is very diverse. English law oils the whole of global commerce. It's a great boom. There have been chambers opening up in Geneva, Hong Kong, Singapore. The commercial market is beginning to do well as the economy picks up."
Some trends are already discernible. As many as 21% of solicitors now work as in-house lawyers and the Ministry of Justice has been recruiting lawyers for its salaried Public Defender Service to avoid using highly paid barristers. Senior judges have also been musing about replacing expensive adversarial courtroom clashes with simpler, judge-led, inquisitorial procedures.Some trends are already discernible. As many as 21% of solicitors now work as in-house lawyers and the Ministry of Justice has been recruiting lawyers for its salaried Public Defender Service to avoid using highly paid barristers. Senior judges have also been musing about replacing expensive adversarial courtroom clashes with simpler, judge-led, inquisitorial procedures.
Paralegals believe they will soon dominate the legal profession. "It's the consumer who has been suffering," said Amanda Hamilton, chief executive of the National Association of Licensed Paralegals. "If consumers are offered a choice, they prefer the £50-an-hour paralegal rather than the £500-an-hour solicitor. In future there will be fewer top-echelon jobs, an opening up of the legal sector and more emphasis on less costly services."Paralegals believe they will soon dominate the legal profession. "It's the consumer who has been suffering," said Amanda Hamilton, chief executive of the National Association of Licensed Paralegals. "If consumers are offered a choice, they prefer the £50-an-hour paralegal rather than the £500-an-hour solicitor. In future there will be fewer top-echelon jobs, an opening up of the legal sector and more emphasis on less costly services."
James O'Connell, head of policy at the Institute of Paralegals, said solicitors had priced themselves out of the market. "In the old days, law was like a priesthood. Nowadays we are in contact with the law all the time: speeding tickets, health and safety, wills etc.James O'Connell, head of policy at the Institute of Paralegals, said solicitors had priced themselves out of the market. "In the old days, law was like a priesthood. Nowadays we are in contact with the law all the time: speeding tickets, health and safety, wills etc.
"Solicitors firms are hollowing out. They are getting rid of really expensive solicitors and getting work done by paralegals. That's why there's a shortage of training contracts. There are too many unaffordable lawyers and too few affordable ones." "Solicitors' firms are hollowing out. They are getting rid of really expensive solicitors and getting work done by paralegals. That's why there's a shortage of training contracts. There are too many unaffordable lawyers and too few affordable ones."
The legal profession in numbersThe legal profession in numbers
• A 2008 Eurostat study found the UK had 2.27 lawyers per 1,000 citizens – well above the European average of 1.81 but below the US, which has 3.82.• A 2008 Eurostat study found the UK had 2.27 lawyers per 1,000 citizens – well above the European average of 1.81 but below the US, which has 3.82.
• According to the Legal Services Board, there are 166,853 solicitors, barristers, chartered legal executives, licensed conveyancers, trademark agents, patent attorneys, notaries and other lawyers in England and Wales. If the number of judges, court clerks, university law lecturers, non-practising solicitors, paralegals and all the lawyers in Northern Ireland and Scotland are included, the figure would come to well over 200,000 – about one in 300 of the population.• According to the Legal Services Board, there are 166,853 solicitors, barristers, chartered legal executives, licensed conveyancers, trademark agents, patent attorneys, notaries and other lawyers in England and Wales. If the number of judges, court clerks, university law lecturers, non-practising solicitors, paralegals and all the lawyers in Northern Ireland and Scotland are included, the figure would come to well over 200,000 – about one in 300 of the population.
• In 1980, there were 39,795 practising solicitors in England and Wales. This April, the Solicitors Regulation Authority found there were 129,083. The number of practising barristers has grown from 4,589 to 15,585 in the same period.• In 1980, there were 39,795 practising solicitors in England and Wales. This April, the Solicitors Regulation Authority found there were 129,083. The number of practising barristers has grown from 4,589 to 15,585 in the same period.
• The number of solicitor training contracts has fallen from more than 6,000 in 2008 to 5,302 in 2013.• The number of solicitor training contracts has fallen from more than 6,000 in 2008 to 5,302 in 2013.
• Four years ago, the Law Society estimated there were more than 15,500 aspiring lawyers who had completed LPC places but could not find training contracts with firms to complete their professional training.• Four years ago, the Law Society estimated there were more than 15,500 aspiring lawyers who had completed LPC places but could not find training contracts with firms to complete their professional training.
• The number of barrister pupillages has contracted sharply, from 695 places in 2001 to 429 in 2013.• The number of barrister pupillages has contracted sharply, from 695 places in 2001 to 429 in 2013.