Figures from accountancy contractors Nixon Williams show that in 2015 the difference in average earnings between lawyers and chartered and certified accountants was 13.7 per cent, down from 20 per cent in 2009. Furthermore, average pay for accountants rose by 2.8 per cent in 2015 to £35,923 – 3 per cent higher than the pre-recession peak in 2007, while average 2015 pay for legal professionals of £41,602 remains 2.4 per cent below its 2009 peak.

Rising demand

Nixon Williams attributes the rise in pay within the accountancy sector to accountants’ focus on cost-cutting and reducing headcount during the recession. Cut backs on graduate training in large accountancy firms have also led to a shortage of suitably qualified candidates to meet rising demand.

Oversupply

By contrast, the legal profession has too many lawyers when demand in many areas has stagnated or fallen as law firms merge or close down and legal aid budgets are being drastically cut. Nixon Williams chief executive Simon Curry told the Law Society Gazette that law firms are also attempting to get rid of very pricey lawyers and have more work done by paralegals, further driving down average pay.

Push into legal market

Accountancy firms (including the Big Four) are also making stronger moves into the legal market, with Mr Curry commenting that they are ‘increasingly able to undercut law firms by offering a fixed-fee pricing model. This is appealing in a market which has become less willing to accept the billable hours charged by many law firms.’