The Law Society is to offer the Legal Services Board early payment of the amount it must contribute towards the £19.9m setup costs of the board and the Office for Legal Complaints, in return for an early payment discount.

The LSB announced last week that it will reduce the amount that must be handed over in the first year by regulators, including the Law Society.

The LSB had originally proposed that 70% of the £19.9m cost of setting up the LSB and OLC must be paid by 31 March 2010, with 20% the following year and 10% in 2012. However, the LSB has now proposed that the payment should be made in three equal instalments, making the first year payment far lower.

However, the move comes too late to affect the 2010 practising certificate (PC) fee for solicitors. A 19% increase in the PC fee to £1,180 was voted on by the Law Society Council in July and has been approved by the Master of the Rolls.

Law Society chief executive Des Hudson said he had made it clear to the LSB earlier in the year that its timeframe for setting payment levels did not fit with the Law Society's timetable for fixing the PC fee.

He added: 'We will consider saying to the LSB, "we are very happy you have made the decision to defer [some of the payment]. We will pay you now if you give us a discount".'

Hudson rejected a previous suggestion by the LSB that the Law Society had overstated the proportion of the PC fee increase which related to setting up and running the new regulatory bodies.

He said there was only 'one item' not related to the LSB and OLC which had contributed to an increase in the Law Society's share of the PC fee. That was the assumption that there would be a smaller number of people paying the PC fee, which would add only £38 to the fee.

LSB chief executive Chris Kenny said the proposals for payment in equal instalments would give regulators 'flexibility'.