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Legal Costs and Who Pays Them
Understanding costs in small claims and fast-track cases
Civil claims · Factsheet 7 of 17
Small Claims (up to £10,000)
- Each side usually pays their own legal costs
- Loser may pay winner’s expenses (e.g., court fees)
- Court can order costs if a party behaved unreasonably
- In personal injury cases, where a claim is found fundamentally dishonest, the court may permit full enforcement of the defendant’s costs order under CPR 44.16
Fast-Track Claims (£10,000 – £25,000)
- Fixed Recoverable Costs (FRC) system applies
- Loser pays winner’s costs, but amount is fixed
- Amount depends on case progress, value, complexity
- Litigants in person can claim up to 2/3 of fixed costs
- Exceptions: Cases involving children, mental capacity issues, pre-Oct 2023 personal injuries, housing claims
Fast-Track Claims before 1 Oct 2023
- Loser generally pays winner’s legal costs
- Solicitor fees: the 2026 guideline hourly rates include £579 (London 1, Grade A) and £295 (National 1, Grade A)
- Litigants in person can charge £19/hour for case preparation
- Higher rates possible with evidence of financial loss
- Litigant in person limit: 2/3 of solicitor’s reasonable costs
- Prepare detailed statement of costs before trial
Personal Injury Claims (pre-1 Oct 2023)
- Qualified One-Way Costs Shifting (QOCS) applies
- Winning claimant gets fixed costs if started via Claims Portal
- Losing claimant usually protected from paying defendant’s costs
- Exceptions: Fundamental dishonesty, struck out claims
- Since 6 April 2023, CPR 44.14 has permitted a defendant’s costs order in an applicable QOCS claim to be enforced up to the total value of orders or agreements in the claimant’s favour for damages, costs and interest (for claims issued on or after that date), subject to CPR 44.15 and 44.16
Expenses (Disbursements)
- Include: Court fees, experts’ fees, photocopying, postage
- Court considers if expense was:
- Actually paid
- Reasonable to pay
- Reasonable amount
- Keep detailed records and receipts
- Can usually claim back reasonable expenses if you win
Tips for Managing Costs
- Plan how to use solicitor’s time effectively
- Consider fixed fees for specific tasks
- Keep detailed records of expenses and time spent
- Prepare cost statements well before trial
- Be aware of potential costs if you lose
- Consider settlement offers carefully
- Remember to ask for costs if you win at trial
The PDF is retained as historical material: it shows superseded guideline hourly rates (£546 and £278) and pre-amendment costs wording. The current guideline rates are £579 (London 1, Grade A) and £295 (National 1, Grade A), and the current costs position is stated on this page. Checked against judiciary.uk and the CPR on 6 August 2026.
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