In recent years we have seen a number of changes to the way the court system operates, including court fees and court access. Examples include the introduction of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, which narrowed the scope on who is eligible for Legal Aid. Further still we saw increases in court fees in July 2013, predominantly for divorce and child matters. Now most recently, we have seen the increase in court fees that came into effect on March 9th 2015.
Needless to say that the fees have been met with wide criticism across the legal system, with increases of up to 622%, many critics fear the knock-on effects that this may have.
It is speculated that this will primarily affect individuals and small and medium-sized businesses (SMEs) that could now face additional financial burdens that amount to a high proportion of their income or profit. The general fear amongst the legal system is that these increases may lead to deterrence in taking legal action and seeking redress where it is crucially needed by way of recovering compensation or unpaid debts. As a result of the increased financial risks, it is to be assumed that this will also indirectly impede access to justice by restricting both individuals and SME's willingness to bring a case to court.
So what does this mean in numbers?
Whilst for claims valued between £1 - £9,999 the fee remains the same, for any claim of £10,000 or more, there will now be a fixed fee equal to 5% of the claim value. For some cases this means significant increases, as can be seen below:
| Value of claim (£) | Previous fee (£) | New fee (£) | Increase (£) | % increase |
| 20,000 | 610 | 1,000 | 390 | 64% |
| 40,000 | 610 | 2,000 | 1,390 | 228% |
| 90,000 | 910 | 4,500 | 3,590 | 395% |
| 150,000 | 1,315 | 7,500 | 6,185 | 470% |
| 190,000 | 1,315 | 9,500 | 8,185 | 622% |
| 200,000 | 1,515 | 10,000 | 8,725 | 576% |
| 250,000 | 1,720 | 10,000 | 8,280 | 481% |
So what does this mean to you?
The effect of this financial grip will inevitably impact on willingness to pay for legal representation, and individuals or SME's may choose to litigate in person, instead believing that this is a cheaper solution. However this may be a daunting prospect and there are problems and issues associated with litigating in person, which consequently effect the whole court system. General assumptions regarding litigants in person, are that they slow down the court process, often meaning cases overrun and in turn incur higher costs. Whilst initially individuals or SME's may believe that they are saving on costs by not hiring a solicitor, there is often a great loss of time, expense, and emotional distress resulting from litigating in person.
At Clapham & Collinge we have a dedicated team of expert solicitors who can provide you with all of the necessary information, support and legal advice, required to bring a claim. Contact us today on 01603 693500 or email info@clapham-collinge.co.uk
