Thanks for your replies!
ninjapuppet - At the moment our marks are still made up of 100% exams

Although we were told that next semester the exam would be worth 80% and the assessment would be 20%... which is an improvement!
I'm currently working as a paralegal and 3 out of the 4 partners of the firm have a Dip Law rather than an LLB. After talking to numerous people in the profession, it seems as though a Dip Law is actually looked
very highly upon. From what I know, a huge number of employers know how hard the LPAB course is. Plus once you're an admitted solicitor with experience, nobody really cares anyway.
To be honest, I'd prefer to work at a mid tier firm while I'm still starting out. I feel as though I get way more exposure to all aspects of the industry this way. Plus it's very cosy and more friendly.
I'm really happy where I am right now. My job is amazing - I'm given much more responsibility than I was expecting... And while studying on top of that is a bit of a pain, it'll be worth it in the long run. I imagine that 5 years experience as a paralegal and a Dip Law would be looked more highly upon than someone with their LLB fresh out of uni.