Court fees due increase

The Ministry of Justice has announced that it intends to substantially increase the Court fees payable for issuing money claims over £10,000 from April 2015, despite fierce opposition from lawyers and other organisations. 

To date the Government has refused to bow to criticism of its plans, which are estimated to generate an additional £105 million in fee income a year.  They claim that a MORI poll suggested that overall, most civil claimants reported that court fees were ‘affordable’ and ‘did not influence their decision to start court proceedings’.   They also point out that 90% of cases issued fall below £10,000 and will be unaffected by the changes. 

The new issue fees will be calculated as 5% of the value of the claim, up to a maximum fee of £10,000 (the current maximum is £1,920).  For claims valued at circa £200,000 this represents a six-fold increase on the current fee.  Proceedings issued via Money Claims Online will fare only slightly better, with a 4.5% fee. 

The new fees could add several thousand pounds onto a relatively modest claim, as shown below: 

Value of Claim	Current court fee	Proposed new fee
£10,000.00	£455.00	£500.00
£15,000.00	£610.00	£750.00
£50,000.00	£910.00	£2,500.00
£100,000.00	£1,115.00	£5,000.00
£150,000.00	£1,315.00	£7,500.00
£200,000.00 plus	£1,515.00	£10,000.00

While fees for ‘small’ claims under £10,000 will remain unchanged, the proposals will affect other forms of relief including additional fees for applications, which will increase from £155 to £255 where the application is contested.    

There is also a proposal to increase Court fees for possession claims by £75 to £355. 

The Government’s proposals have been strongly opposed by the Law Society, which regulates solicitors in England & Wales.  They are concerned that the proposals may have a detrimental affect on access to justice for many potential litigants. 

The increase in fees is likely to make alternative dispute resolution more attractive and may avoid claims being litigated unnecessarily.   Defendants may think more seriously about settling a claim before it is issued so they can avoid incurring additional costs.  

We would recommend anyone thinking about issuing proceedings to seek advice immediately to avoid incurring additional costs.   For more information or for an appointment please contact our Disputes and Litigation team on 01752 292278.