The new hourly rate, signed off by the Taxing Master on Tuesday, will take effect from 1 June 2025 and will apply until 1 April 2027.

It follows a review undertaken by a working group chaired by High Court judge Mr Justice McAlinden, which took into account research carried by BDO NI on behalf of the Law Society of Northern Ireland.

The Taxing Master said the hourly rate will be “reviewed periodically” but that there was a need to take time to consider the “appropriate methodology for adjusting the rate to allow for inflation”.

The legal executive rate will be revised to £116.25 for work undertaken from 1 June 2025.

A fixed sum of £15.50 will apply in respect of items claimed by solicitors for untimed professional work such as outgoing letters, emails and telephone calls, provided that such items have been “reasonably incurred and are properly documented”.

This fixed sum will be £11.62 where the untimed work is claimed for a legal executive.

Colin Mitchell, president of the Law Society of Northern Ireland, said: “A review of the rate has been long overdue, and I like many others welcome this increase which is in excess of 50 per cent of the former rate.

“The new rate of £155 per hour is effective from 1 June 2025 and will apply to 1 April 2027. Members should note that the new rate is prospective only and does not apply retrospectively.”

He added: “Considerable time and effort was expended by the Society on the review which was greatly assisted by our engaging BDO NI to undertake a survey of members to collect and analyse data on the cost of operating a solicitor’s practice in 2024.

“Empirical data was supplied by 131 working firms which assisted in the preparation of an independent and commercial assessment of the hourly rate, the contents of which were accepted by the working group.

“BDO used several different calculations to establish a robust and verifiable figure for the hourly rate.

“As president of the Law Society and chair of the contentious business committee, I would like to take this opportunity thank everyone involved in the review of the hourly rate including those members who took the time to complete the survey and participated in follow up interviews.

“All the hard work has produced an increased rate which is reflective of the actual cost of operating a practice.”