Getting back to basics on costs

• The costs budgeting light pilot sets out to streamline the costs management process for lower-value multi-track claims.
• It presents a step towards a permanent overhaul of the costs budgeting framework for lower-value claims.

In a significant step toward modernising civil litigation in England and Wales, the 179th amendment of the CPR introduced the costs budgeting light pilot scheme, also known as simplified costs budgeting.

Launched on 6 April 2025, this three-year pilot aims to streamline the costs management process for lower-value multi-track claims, reducing complexity and promoting proportionality in legal proceedings. For those practitioners engaging with the pilot, it is important to explore and understand the scope, structure, strategic implications, and practical next steps.

The pilot applies to Part 7 multi-track claims and is mandatory for eligible cases issued between 1 April 2025 and 1 April 2028, unless the court directs otherwise, with a value of less than £1m. The scheme is currently being trialled in the business