People at desk

Hot on the heels of the recent consultation on QOCS and vulnerable parties the CJC has published its own consultation on key aspects of the Jackson reforms.

The consultation focusses on four key aspects of the current costs regime:-

  1. Budgeting
  2. Guideline hourly rates
  3. Costs under pre-action protocols
  4. The wider impact of the extension of fixed recoverable costs

Since its implementation in April 2013 budgeting has been, and remains, the marmite of the costs world – loved and hated in equal measure. Budgeting certainly brings a series of benefits to the litigation industry and a key question to now consider is whether those benefits are worth the cost?

The recent review of guideline hourly rates and subsequent increases in those rates caused a great deal of consternation across the industry. The methodology used was heavily criticised, particularly by the insurance industry, and the key now is to devise a better way of setting rates that provide reasonable recompense for the work undertaken together with a degree of certainty as to the sums to be paid.

The MOJ has confirmed that they aim to implement the extension of fixed recoverable costs across the fast track and into the lower reaches of the multi-track by April 2023. That extension will have a huge impact on the industry, influencing how claims are both pursued and defended. It is also likely to have a significant impact on the market with yet further consolidation likely.

Paul McCarthy will be attending the CJC’s Costs Conference to discuss the issues raised in the consultation. The conference takes place on 13th July 2022.

It is critically important that your voice is heard and we at HF would welcome your views on all aspects of the consultation. If you would like to discuss the issues raised, then please contact Paul McCarthy.




Paul McCarthy

Paul McCarthy
Partner & Head of Costs