A new ‘fixed costs’ regime and increases to court fees

The Civil Procedure Rules Committee and the Ministry of Justice have implemented the 163rd update to the Civil Procedure Rules which came into force on 6th April 2024. These amendments are aimed at reducing the costs associated with litigation, as litigants in cases assigned to either the ‘fast’ or ‘intermediate’ tracks will have their ability to recover costs fixed at prescribed levels based upon the complexity and value of the case. 

The ’fast track’ is generally used for claims with a value of over £10,000 and not more than £25,000. The ‘intermediate track’ is appropriate for claims with a value of over £25,000 but not more than £100,000. Once a case is allocated to a particular ‘track’, it is also assigned to one of four complexity bands. 

The new fixed costs provisions are designed to enhance transparency in recoverable legal costs, prevent disproportionate costs, and encouraging greater efficiency in the handling of disputes. 

In addition to the extension of fixed recoverable costs, the Ministry of Justice also confirmed (with effect from May 2024) that 172 different court fees have increased by 10% in line with inflation. The cases affected by these rises include fees for civil claims in the County Court, High Court, various Tribunals (including Lands and Property Chambers). 

The increases are based on the additional administrative and judicial costs incurred by HMCTS in the processing of new and existing claims. 

If you have any queries about the expansion of the fixed costs regime, or the increases in court fees, please contact Khushi Kanodia on kk@deanwilson.co.uk or 01273 032334.