National firm Irwin Mitchell will this month pay most of its staff an extra £900 to help them deal with rising food and fuel costs.

The one-off payment will be made to all staff below partner level, and is not related to any normal pay review or bonus calculations which will take place over the coming months.

A spokesperson for the firm said: ‘In light of the challenging external circumstances affecting the cost of living, we’ve taken the decision to make a one-off payment of £900 in April’s salary to most colleagues. We’re making this payment as an acknowledgement of the challenges some colleagues are currently facing from increases in the cost of living, in particular fuel and energy prices.’

It is believed to be the first time a law firm has acted in such a way in response to the return of inflation. The annual inflation rate rose to 7% last month, according to the Office for National Statistics, the highest for 30 years.

Irwin Mitchell has been in rude financial health during the pandemic. According to the Irwin Mitchell LLP accounts for the year ended 30 April 2021, profit available for discretionary division among members was up 68% to £41.3m, following operating profit rising by 23% to £73.5m.

Cash reserves almost doubled during the year to £31.8m. The firm received a government grant during lockdown to cover the salary costs of a number of employees but subsequently repaid all of the £1.5m.