Agreement by Ministry of Justice to defer most proposed savings until next summer will not affect two-day solicitors' walkout

Barristers have staged two walkouts this year in protest against cuts to legal aid. Photograph: Graeme Robertson for the Guardian

Criminal barristers have called off their industrial action over legal aid payments after reaching a deal with the Ministry of Justice to suspend cuts until after the next general election.

The ministry said it had agreed to defer most proposed savings until next summer when they will be reviewed. The MoJ is still intending to save £215m from the annual legal aid budget by 2018-19.

However, the barristers' decision to not take part will not stop a planned two-day walkout by criminal solicitors and probation officers scheduled for next Monday and Tuesday from going ahead.

The justice secretary, Chris Grayling, said: "Following constructive discussion with leaders of the bar and Law Society, we have agreed further measures to help lawyers as they prepare for legal aid savings. In return the leaders of the bar have dropped their objection to working at reduced rates on very high cost cases, and have agreed to call off their action to disrupt courts.

"An efficient and fair criminal justice system – both for the public and people that work within it – is my top priority, and I believe this agreement is a positive step forward."

He added: "I have always said that, given the current economic climate, I have no choice but to make savings, but that I also wanted to do what I could to ease their effects on lawyers. Hopefully today's agreement proves that I am true to my word."

There have been meetings in recent days between Grayling, the Bar Council, which represents barristers in England and Wales, the Criminal Bar Association (CBA) and the Law Society, which represents solicitors in England and Wales.

According to the CBA the main agreement focused on cuts to the advocates graduated fee scheme of up to £10m, which have been put off until at least next summer. The deal is aimed at helping poorly paid junior barristers in the short term.

The review in 2015 will take into account reports by Sir Bill Jeffrey on advocacy, Sir Brian Leveson on streamlining court practices and a retired judge, Geoffrey Rivilin QC.

Nigel Lithman QC, the CBA chairman, said: "We are glad that we have persuaded the government to recognise that further cuts to the junior bar are unnecessary and would jeopardise the existence of the profession … This gives 89% of the criminal bar – those that do not do VHCC [very high cost crime fraud] cases – what they have demanded. The criminal bar has displayed what unity and resolve can achieve. In relation to VHCC cases, whilst it is for each individual barrister to choose what work they undertake, there is no objection in principle to barristers who want to work on VHCCs undertaking such cases if they choose to do so."

Barristers had been boycotting VHCCs as part of their industrial action. The MoJ and the criminal bar have now agreed to continue negotiating over such complex fraud cases.

Lithman said: "We hope that constructive engagement can produce further sensible conclusions, not only with the criminal bar but with also the criminal solicitors who keep the system running smoothly up and down the country. The CBA remains supportive of the stance taken by solicitors and will continue to engage with all parties concerned about the future of the CJS."

Criminal barristers joined solicitors in two mass walkouts, one in January and another earlier this month, that disrupted cases in magistrates and crown courts across England and Wales.

Steve Hynes, director of the Legal Action Group, which monitors legal aid, said: "Lithman has played his hand like a posh version of [the late union leader] Bob Crow. He was aware of the power of the boycott of VHCCs and returns and exploited it to the full. The deal, though, will have done long-term damage to the CBA's relationship with solicitors, as they will increasingly look to take away work from the criminal bar.

"This is a significant climbdown from Grayling. He blinked first in the showdown with the bar and put off the difficult decisions on barristers' fees until after the next election."

Nicola Hill, president of the London Criminal Court Solicitors Association, said: "Mr Grayling's decision to divide and rule the legal profession is a desperate move. He has struck this 'deal' with the bar just days before two pillars of the justice system, solicitors and probation staff, are about to walk out over two days, causing major disruption to courts around the country.

"He is clearly starting to understand the extent of the anger and frustration running through the core of the entire criminal justice system thanks to destructive cuts and overhauls. As all legal professionals have said time and again this slash and burn approach affects not just the professionals but, more importantly, justice."

She said the association took heart from the "minor concessions" Grayling had made towards the legal aid bar and solicitors: "They are something. But for the thousands of solicitors who are struggling to keep their firms going, who feel they can't deliver a service they went into the profession to provide, this is not enough.

"Chris Grayling has told solicitors that we didn't complain hard enough. This confirms he listens only to action that hurts the courts. We understand that message. Our action will continue."

Labour's shadow justice secretary, Sadiq Khan, said: "I welcome any progress on improving the relationship between the justice secretary and those who work in the justice system but Chris Grayling appears to have done a deal with senior barristers only.

"This won't do anything to address the serious concerns that those who today have access to justice through legal aid won't in the future. Protecting the fees of some barristers until after the next general election doesn't solve the problems of advice deserts around the country.

"There is no protection for high-street solicitor firms or junior barristers and I fear the British legal profession will return to the days where only those with means could afford to train and practice law".

Desmond Hudson, chief executive of the Law Society, said Grayling had agreed to make an extra £9m available to fund the introduction of interim payments for solicitors from this summer, a year earlier than planned.

"The additional funding … will ease cashflow for all providers during 2014-15 and provide some assistance to our hard-pressed members who are facing dire circumstances and battling to deal with the 8.75% cut which came into effect last week."