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14 January 2026
Issue: 8145 / Categories: Legal News , Costs , Personal injury , Housing , Legal aid focus
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Flaws found in fixed costs regime

The extension of fixed recoverable costs (FRC) from low-value personal injury to most civil cases worth up to £100,000 ‘is failing to deliver what it promised’, the Law Society has warned

FRCs were extended to most fast- and intermediate-track cases in 2023, implementing the recommendations of Lord Justice Jackson’s civil litigation costs review. The Ministry of Justice and the Civil Procedure Rules Committee have been taking stock of how well the extension is working, with a view to consulting in detail on the reforms later this year.

Responding this week, the Law Society said two years was too soon to know the full impact of the extension. However, it highlighted some areas of concern.

Brett Dixon, Law Society vice president, said: ‘The FRC regime is appearing to unfairly penalise the successful party, who could now be responsible for paying the difference between lawyers’ reasonable costs and the amount of FRCs, rather than this cost falling on the unsuccessful party. This disparity should be looked at as a priority.

‘We are also concerned that the FRC regime has the potential to negatively impact vulnerable parties. It is important that the regime properly protects the most vulnerable in our legal system and ensures everyone can access justice.’

Dixon urged ministers to continue to exclude housing legal aid cases from the FRC regime, and to do so on a permanent basis ‘given our concerns about how the regime is operating and the catastrophic impact FRCs could have on housing legal aid providers’.

While the Jackson review recommended FRCs for housing disrepair and possession claims, the government decided to exempt these cases until 2028. The reasons are the ongoing Renters’ Rights Act reforms, leasehold and freehold reforms and Awaab’s Law, which enhance protection for tenants.

Law Society research conducted with Frontier Economics and published last May, found all housing legal aid provision was loss-making, with fee earners recovering only half their costs. The research noted median providers in the sample were losing £33,000 for each full-time fee earner providing housing legal aid. The work was compensated at hourly rates of £46 to £72.

MOVERS & SHAKERS

Taylor Rose—Jacqui Hayat & Andrew Bentham

Taylor Rose—Jacqui Hayat & Andrew Bentham

Taylor Rose strengthens Medical Negligence team with senior leadership appointments

Birmingham Law Society—Sabina Kauser

Birmingham Law Society—Sabina Kauser

Ward Hadaway partner appointed Vice President of Birmingham Law Society

Excello Law—Nick Gore & Irfan Ali

Excello Law—Nick Gore & Irfan Ali

Excello Law immigration boost with two more hires from Irwin Mitchell

NEWS
Developers in areas with poorly performing councils can apply directly to the Planning Inspectorate for permission under section 62A of the Town and Country Planning Act 1990
A divorced woman has secured funding to participate in her former husband’s inquest after the Legal Aid Agency reconsidered repeated refusals
When does a solicitor’s retainer become a contentious business agreement? The Court of Appeal’s decision in Broadfield Law UK LLP v Barnes shows that listing hourly rates alone will not do, leaving firms and clients uncertain about their rights over bills
The Thirlwall Inquiry has exposed a ‘complete failure’ to protect babies at the Countess of Chester Hospital, but its recommendations must now be put into practice
MPs cannot simply resign their Commons seats. Instead, they take a nominal Crown office, usually the Chiltern Hundreds or Manor of Northstead, which disqualifies them from sitting
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