A DRAMATIC £750 cut in individual contributions to the Solicitors Compensation Fund is planned by the Law Society.
Sole practitioners and City firms alike will welcome the move, which will provide the largest firms with a one-off windfall saving of up to half a million pounds.
The body's ruling council will be asked to approve the reduction, from £1,000 to £250, at its meeting on 27 April.
The Law Society puts the move down to the success of a series of recent measures, including a confidential telephone hotline for whistle- blowers, which have stamped out dishonesty
A Solicitors Complaints Bureau spokeswoman said errant firms were being targeted for investigation by the bureau far more swiftly than before, thanks to improved intelligence gathering techniques.
Vice-president Robert Sayer welcomed the decision.
“It's clear that the worst is over as far as compensation claims are concerned,” he said.