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The prospect of paying referral fees in personal injury becoming a criminal offence seemingly disappeared last night, while the government defeated a bid to exempt not-for-profits from the ban and outlined its plans to crack down on unsolicited PI marketing.

Making the ban on paying referral fees for personal injury work a criminal offence is among a range of changes to part 2 of the Legal Aid, Sentencing and Punishment of Offenders Bill that will be put to the House of Lords this week, after peers inflicted six defeats on the government over its legal aid reforms.

Admiral Insurance is “considering its options” over becoming an alternative business structure, chief executive Henry Engelhardt confirmed yesterday. He indicated that the company is waiting to see the final shape of the ban on referral fees.

A financial services group is to submit its stage two ABS licence application this week as it bids to add a legal practice to its portfolio, Legal Futures can reveal. It comes as the SRA reveals how many would-be ABSs have filed stage two applications.

The outcome of yesterday’s high-profile Downing Street insurance summit appears to have put paid to any hopes among claimant lawyers that there is a compromise to be reached over the Jackson reforms.