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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

Thomson Hayton Winkley—Jordan Wallace

Thomson Hayton Winkley—Jordan Wallace

Thomson Hayton Winkley strengthens family law team

Ward Hadaway—Barnaby Rosenthall

Ward Hadaway—Barnaby Rosenthall

Construction lawyer returns to Ward Hadaway in Teesside role

Bird & Bird—Shahin Baghaei

Bird & Bird—Shahin Baghaei

Bird Bird hires leading legal transformation expert

NEWS
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

How forcefully can a litigant criticise a public authority before robust advocacy crosses the line into unreasonable conduct? 
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