Welsh Legal Sector Study Report 2026

This report explores how Welsh law firms are navigating change, from financial performance and pricing to recruitment, technology, AI and succession. Based on research with over 50 Welsh SME law firms and in-house teams, it provides an evidence-based view of where the sector is today – and where opportunities for transformation lie.

In this report Osprey Approach & Legal News Wales explore:

  • Financial performance and pricing
  • Recruitment and succession
  • Technology and AI adoption
  • The future of the Welsh legal sector

Download the Welsh Legal Sector Report 2026

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Four numbers from the research

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of Welsh law firms expect to grow next year – two-thirds of them are flat or slightly down this year

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of annual billing written off – around £150,000 a year for a £1m+ firm

0%

of firm leaders find recruiting qualified solicitors difficult. Nobody said it was easy

0%

have no dedicated technology role

Three findings worth raising at your next partners meeting

01

Pricing is a strategic lever, not a default

No billable-hour firm in the survey improved its performance this year. Hybrid pricing firms were the least likely of any group to decline.

02

A thin pipeline for succession and recruitment

Talent is a key challenge, with every firm reporting that recruitment is difficult, coupled with 42% of firms having no succession plan in place.

03

Owning the software is not the same as getting the value

Over 94% of firms already have the core systems in place, yet many still call the same processes inefficient. The gap is in how those systems are set up and used, not whether firms have them.

In their words

Shaun Jardine

There's an enormous difference between giving a fixed price and pricing for value. The firms getting it right define the scope carefully and understand the true cost of the work. The firms getting it wrong just multiply hours by a rate and call it a fixed fee.

Shaun Jardine
CEO, Big Yellow Penguin

John Cullen

The risk of a seismic shock in the industry has risen significantly. Blaming a model as the cause is easier, as we have an understanding of the strengths and weaknesses of it. The real risk lies elsewhere.

John Cullen
Partner, Menzies

Sarah Charlton

Traditionally, many Welsh law firms stick their head in the sand about succession. Associates are now so well paid that in some firms they're paid higher than their partners. So, there isn't a desire to take on all the regulation, the staffing problems, the health and safety. It's just not an attractive deal.

Sarah Charlton
CEO, Eaton-Evans & Morris Solicitors

Ryan Pryce

There is undoubtedly a genuine shortage of experienced legal talent. But if 42% of firms have no succession plan, that suggests many organisations are being reactive rather than planning several years ahead. The strongest firms tend to treat succession planning as a talent-development exercise rather than an emergency recruitment exercise.

Ryan Pryce
Associate Director, TSR Legal

Jeff Wright

There's also an element of 'keeping up with the Joneses', law firms of every size can be a bit like sheep with technology choices, and on the basis, if everyone else has made the same one, it's probably safe.

Jeff Wright
Chief Experience Officer, Redkite Solicitors