Recommended increases vary from (London 1) £512 (25.2%) for Grade A to £186 (34.8%) for Grade D to (National 2) £255 (26.78%) for Grade A to £126 (13.5%) for Grade D.
Stewart J’s report notes that future reviews should take into account ‘changes in working practice brought about by new technology, the sequelae of the COVID-19 pandemic and the HMCTS reform programme’.
The guideline hourly rates have not changed since 2010―previous recommendations made by a costs committee chaired by Mr Justice Foskett were not taken up by the Master of the Rolls in 2015 due to a lack of responses from law firms.
Richard Miller, head of justice at the Law Society, said: ‘Guideline hourly rates for solicitors have not been changed in over ten years and were long overdue a review.
‘Revised rates would give both solicitors and their clients greater clarity about costs and we look forward to responding to the consultation points raised in the report. Although this report has been carried out as a standalone piece of work, it will be important to consider these changes in the context of other civil justice reforms including the Ministry of Justice’s work on fixed recoverable costs and the wider HMCTS reform programme.’
Association of Costs Lawyers chair Claire Green said: ‘It is unarguable that the GHRs need to be increased after a decade-long freeze.
‘Deciding on new rates is no easy task. The working group describes its proposed increases as ‘modest’ and if nothing else that will hopefully aid their approval should they be the final figures recommended to the Master of the Rolls.
‘The report also makes some welcome tweaks to the regime, most notably by re-categorising London 1 and London 2 bands to reflect the type of work done rather than a firm’s postcode, and ensuring that every part of the country outside the capital is specifically allocated to a band.
‘The working group notes that, back in 2015, the then Master of the Rolls, Lord Dyson, accepted the recommendation that suitably qualified costs lawyers should be eligible for grades B and C. Implementation of this, and recognition of the value of our work, is now long overdue.’
The consultation on the recommendations is open until 31 March 2021. See: bit.ly/3sgwFUv.
