2010 Practising Certificate Fee for the Employed Bar

How your practising certificate fee is compiled

The compulsory Practising Certificate Fee [PCF] funds the expenditure that currently falls within the permitted purposes as defined s51 of the Legal Services Act (LSA) 2007 and amplified by the PCF Rules and guidance issued by Legal Services Board (LSB).

Other sources of funding to meet the difference in Bar Council expenditure include the Inns’ subvention, income from regulatory activity, investment returns and commercial activity.

In addition, the Bar Council invites the voluntary payment of the Members’ Services Fee (MSF) that contributes to the funding of the element of representational activity that does not fall, wholly or in part, under the permitted purposes.

The way in which the Bar Council calculates and applies income from the PCF has been available for audit by Ministry of Justice officials (assisted if necessary by the Legal Services Consultative Panel) every three years and is published annually in the Bar Council Annual Report and Accounts. For fees levied from 2011 onwards, the Bar Council, as Approved Regulator, must apply to the LSB for approval of the PCF and, in so doing, must, amongst other matters demonstrate the application of fees for permitted purposes.

The Bar Council aims to give individuals at least four weeks’ written notice of the requirement to pay the PCF and MSF which are due this year on 6th April 2010. Payment of the PCF into the Bar Council's bank account will be acknowledged by the supply of a Practising Certificate to the practitioner.

The PCF for the Employed Bar (Including registered European lawyers and those practising in employment overseas) covers the period 6 April 2010 – 5 April 2011 and is made up of the following:

• Core Activity
• Staff Pension Fund Levy
• LSB Levy and
• Office for Legal Complaints (OLC) Levy

You are requested to note in relation to the tables below that seniority for billing purpose is calculated by the number of years of call that an individual will reach during the fee period in question. For example, a barrister called in July 2002 will in July 2010 reach 8 years call and therefore for billing purposes will be deemed as such and therefore will be in the category of Junior 8 to 12 years from Call.

Bar Council Core Activity as Approved Regulator and Representational Activities

Core Activity (unchanged for 2009)
	Core Fee	MSF
QC	660	150
Junior (13 Years and over from Call)	463	100
Junior (8 to 12 Years from Call)	260	100
Junior (5 to 7 Years from Call)	140	100
Junior (3 to 4 Years from Call)	62	100
Junior (0 to 2 Years from Call)	62	50

Staff Pension Fund Levy

The pension levy is the result of a decision by the Bar Council taken on 3 October 2009 to raise money in three or four tranches to mitigate the risk of the past service liabilities of the Bar Council Staff Defined Benefit (DB) Pension Scheme being passed onto the junior bar in years to come. The Scheme has been running since 1974 and has been kept properly funded to the satisfaction of the Scheme Trustees. But the recent national and international financial crisis has reinforced our belief that it is increasingly difficult for a relatively small employer like the Bar Council to respond to large adverse swings in the Scheme’s balance of assets and liabilities. A very recent analysis (September 2009) by the Scheme actuary has calculated that today’s worst case deficit – the ‘buy out’ cost - is just under £10m. The Bar Council decided that these past service liabilities should be paid by today’s members of the profession who have had the benefit of the Bar Council staff support over the years, and should not be left to be paid by the future members of the profession, many of whom face an uncertain financial outlook. Approximately 80% of the total sum we intend to raise is eligible for inclusion in the Practising Certificate Fee, this being the proportion falling within the terms of s.46 of the Access to Justice Act 1999. This was an uncomfortable and and not therefore easy decision, but it was the correct decision. It would have been irresponsible for the Bar Council to duck it. This decision to mitigate the risk has the support of an Opinion by Leading Counsel.

The pension levy has been calculated for each self-employed and employed barrister by reference to years of Call. Starting from 1974, for each year of Call there will be a levy of £9. Thus the levy will range from zero for newly qualified barristers who have had no benefit from the staff, to £324 for the most experienced barristers who have had the maximum of 36 years’ support from the staff. This levy in 2010 will raise approximately £2.25m. A similar levy will be raised in 2011 and 2012, and may also be necessary in 2013. The sooner we raise the money to mitigate the risk in the Scheme, the less likely we will need the levy in 2013.

	Staff Pension Fund Levy 2010
Year of Call	Years from Call in 2010	Pension Levy
2008	2	18
1995	15	135
1985	25	225
1980	30	270
1975	35	315
1974 and previously	36	324

LSB and Office of Legal Complaints (OLC) Levies

The Bar Council has a statutory obligation to pay an agreed proportion of the initial set up and, thereafter, the running costs of the LSB and OLC. The sums to be raised in 2010 are £494,024 and £350, 172 respectively. These costs have been allocated across the profession on the same ratio as the core fee bandings as indicated in the following table:

LSB & OLC Levies 2010
	LSB Levy	OLC Levy
QC	50	35
Junior (13 Years and over from Call)	35	25
Junior (8 to 12 Years from Call)	20	14
Junior (5 to 7 Years from Call)	11	7
Junior (3 to 4 Years from Call)	5	3
Junior (0 to 2 Years from Call)	5	3

Reduced Fees for Relatively Low Income or Prolonged Absence from Practice

The Bar Council has agreed a reduced fee structure for employed barristers of 5 years call and over whose gross annual income from practice in the preceding calendar year is less than £30,000.

The concession allows an individual to apply to pay that fee applicable to the band below that which would normally apply e.g. a Junior in the 8 to 12 years from call band can apply to pay those rates for the Core Fee and both LSB and OLC levies that apply to the Junior in the 5 to 7 years call band.

With regard to the pension levy an across-the-board 2-year reduction from your total number of years call will be granted, i.e. an individual who is of 10 years call would pay a levy of £90 (£9 x 10 years). The waiver reduces this by 2 years so that the abated levy is £72.00 (£9 x 8 years). The following table illustrates the total concession;

Employed Bar - For the Period 6 April 2010 - 5 April 2011
	Core Fee	Core Fee Reduced Rate	LSB Levy	LSB Levy Reduced Cost	OLC Levy	OLC Levy Reduced Cost	Pension Levy 2 year reduction
QC	660	463	50	35	35	25	Total Number of years call -2 years x £9
Junior (13 Years and over from Call)	463	260	35	20	25	14	Total Number of years call -2 years x £9
Junior (8 to 12 Years from Call)	260	140	20	11	14	7	Total Number of years call -2 years x £9
Junior (5 to 7 Years from Call)	140	90	11	5	7	3	Total Number of years call -2 years x £9

In addition, it is possible to obtain a pro rata reduction for absence from practice exceeding 3 continuous months, provided the Bar Council has received prior written notification of a change of status to non-practising. Status cannot be changed retrospectively. Such reductions will be given on return to practice.

Application for reductions on grounds of relatively low income or prolonged absence should be made in writing to the Records Officer at 289-293 High Holborn, London, WC1V 7HZ signed personally by the applicant and must state clearly gross income per annum or the dates on which the applicant will be non-practising. (A form for this purpose is enclosed with the individual letters of notification.)

Reductions for Block Payment or Payment by Direct Debit

The Practising Certificate Fee and Members’ Services Fee will be reduced by 2.5% where an individual practitioner pays by direct debit, or by 5% where Chambers (but not sole practitioners) make a single block payment on behalf of all members. However, in cases of reductions in the light of relatively low income or absence from practice, a further reduction will not be made for block payment or payment by direct debit.

Instalment Payment of the PCF and MSF by Direct Debit

Those Employed practitioners, whose gross income from practice is less than £60k for the calendar year ending 31 March 2009, may apply to make payment, by direct debit mandate, of their PCF and MSF in two separate instalments on 22 March 2010 and 22 September 2010. An application form and direct debit mandate form is available on request from the Records Office by email records@barcouncil.org.uk or alternatively, by telephone 020 7242 0934.

Please note that there are no discounts associated with the instalment facility and that it is not applicable to the Block Payment system. Applicants to pay by instalments will be treated as individual direct debit payers and, as appropriate, removed from any Block Payment arrangement.