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14 January 2026
Issue: 8145 / Categories: Legal News , Costs , Personal injury , Housing , Legal aid focus
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Flaws found in fixed costs regime

The extension of fixed recoverable costs (FRC) from low-value personal injury to most civil cases worth up to £100,000 ‘is failing to deliver what it promised’, the Law Society has warned

FRCs were extended to most fast- and intermediate-track cases in 2023, implementing the recommendations of Lord Justice Jackson’s civil litigation costs review. The Ministry of Justice and the Civil Procedure Rules Committee have been taking stock of how well the extension is working, with a view to consulting in detail on the reforms later this year.

Responding this week, the Law Society said two years was too soon to know the full impact of the extension. However, it highlighted some areas of concern.

Brett Dixon, Law Society vice president, said: ‘The FRC regime is appearing to unfairly penalise the successful party, who could now be responsible for paying the difference between lawyers’ reasonable costs and the amount of FRCs, rather than this cost falling on the unsuccessful party. This disparity should be looked at as a priority.

‘We are also concerned that the FRC regime has the potential to negatively impact vulnerable parties. It is important that the regime properly protects the most vulnerable in our legal system and ensures everyone can access justice.’

Dixon urged ministers to continue to exclude housing legal aid cases from the FRC regime, and to do so on a permanent basis ‘given our concerns about how the regime is operating and the catastrophic impact FRCs could have on housing legal aid providers’.

While the Jackson review recommended FRCs for housing disrepair and possession claims, the government decided to exempt these cases until 2028. The reasons are the ongoing Renters’ Rights Act reforms, leasehold and freehold reforms and Awaab’s Law, which enhance protection for tenants.

Law Society research conducted with Frontier Economics and published last May, found all housing legal aid provision was loss-making, with fee earners recovering only half their costs. The research noted median providers in the sample were losing £33,000 for each full-time fee earner providing housing legal aid. The work was compensated at hourly rates of £46 to £72.

MOVERS & SHAKERS

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
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