The government has capitulated to fierce lobbying and increased fees in very high-cost criminal cases (VHCC) by 5% as an interim measure to avoid a potential crisis in the Crown Courts.

Solicitors and barristers will see the same percentage increase, with a senior solicitor or QC working on the most complex cases receiving £152.50 an hour, up from £145.

The Legal Services Commission (LSC) has also committed to a revised payment model for VHCC work from July 2009, moving away from hourly preparation rates and fixed daily court fees, which the bar said were inflationary and rewarded inefficiency, to a graduated fee scheme. This is likely to be of greater importance to the bar longer term, and the Bar Council has welcomed it.

The LSC estimates that the changes, which are subject to a short consultation, will cost around £6m. The extra cash will come from savings generated by reducing the number of cases where two advocates are instructed.

Justice Secretary Jack Straw praised the efforts of the LSC, Law Society and Bar Council to achieve a lasting solution. He said: ‘There will need to be further dialogue with practitioners on the details of the new scheme but much progress has been made.’

Law Society President Paul Marsh said: ‘While this announcement contains good news for solicitors undertaking VHCC work, we are disappointed that the ministry has given such high priority to the concerns of senior barristers at a time when solicitors’ firms working at the coalface are worried about their very survival.’

He said that, if there are savings to be made in the legal aid budget, they should be redirected to solicitors working in magistrates’ courts and at police stations.