The Law Society’s Council yesterday deferred a final decision on the level of this year’s compensation fund levy until its next monthly meeting in July.Society president Paul Marsh said this was to accommodate further discussion with the SRA on the matter.

Papers for yesterday’s meeting include a recommendation that members sanction a three-fold increase in the full-rate contribution to £480 in 2009, up from £150 last year.

Projections in a report to members show that solicitors could face an even steeper increase next year, as the number of practice interventions and the incidence of mortgage fraud soar.

The minimum required full-rate contribution could rise to as much as £875 in 2010, depending on this year’s rate and depletion of reserves. That projection appears in a report to council based on Solicitors Regulation Authority calculations.

Chancery Lane was also asked to consider a ‘second option’ of at least £300 for 2009, but was told this could mean bigger increases later.

The fund’s reserve is considered healthy, but claims have rocketed in the recession. Amounts claimed against the fund soared from £14.5m in 2007 to £67m last year, while claims under active consideration total £51.7m, compared with £26.6m 12 months ago.

In one case, a solicitor arranged around 10 mortgages in favour of himself and disappeared with the money. ‘This is a growing trend involving around 10 such interventions this year, with an estimated shortfall of £25m’, the report says.