The Solicitors Regulation Authority (SRA) has applied to the Legal Services Board (LSB) for approval to raise compensation fund contributions for 2026–27 to £46.3 million, a 78% increase from £26 million in 2025–26. The fund compensates consumers who suffer financial loss due to solicitor dishonesty or failure to account for client money. Individual contributions would rise from £70 to £170, and firm contributions from £1,950 to £2,170, with approximately 195,000 solicitors and 6,500 firms expected to pay. The SRA also proposes changing the apportionment from 50:50 to 70:30 between individuals and firms. The primary driver behind the increase is the collapse of PM Law Limited in February 2026, which generated an estimated £30 million in claims, alongside a surge in interventions—45 in the first 8 months of 2025–26 compared to 42 in the whole of 2024–25. The SRA maintains a target reserve of £32.4 million, equivalent to twice the six-year average annual cash requirement of £16.2 million. The 70:30 apportionment is designed to mitigate the disproportionate impact on smaller firms, whereas under a 50:50 split, firm contributions would have reached £3,600. The SRA board approved the proposals on 30 June 2026, with contributions due to be collected in October 2026 ahead of the 2026–27 practising year beginning 1 November 2026.