Costs Update from CPRC - 9 May 2025
Posted on 9th May 2025 at 13:09
There have been a number of updates given by the Civil Procedure Rule Commitee at their May meeting which has taken place today. The headline points are as follows:
1. There will be a Fixed Costs Stocktake and Consultation this Autumn with a fuller review next year (more on this below).
2. There will be an examination of the exemption from Fixed Recoverable Costs for Housing Disrepair claims. Possible changes as early as 2026 but exemption will remain until it is expressly lifted and will not automtically lift (it had been suggested it would be in place for two years i.e. coming to an end in September 2025).
3. Clinical Negligence FRC remains paused and under review by the Government. An announcement is awaited in due course but no firm timescales at this stage. In short, no further developments on this at this stage.
4. The CPRC revealed that on the issue of Medical Agency fees (specifically whether a breakdown of the medical agency element is or is not required) the Government is discussing this issue with the industry to try find a satisfactory cross-industry solution and this may bring an end to the current uncertainty and litigation. It was said that the Ministry of Justice has no issue in principle to cross-industry agreements, subject to review. It remains possible that the issue could well reach the Court of Appeal.
5. The fee for a Default Costs Certificate has increased to £80, level with the fixed costs for a DCC which is currently £80 plus VAT. It was confirmed this will be reviewed as part of the Fixed Costs Stocktake and review.
6. CPRC are anticipating the government will make requests around the costs regime for Aarhus Convention Claims, so some developments are expected here in the near future.
With regards to the long-awaited Fixed Costs Stocktake the Ministry of Justice have confirmed it is intended that this will take place in Autumn this year. The MoJ will provide a report with consultation on a number of issues, ahead of a full post-implementation review in 2026.
It was confirmed that these will be looking at issues including:
- Review of operation of complexity bands in both the Fast & Intermediate Tracks
- Review of operation of Part 36 in Fixed Recoverable Costs
- Review of exemptions from FRC, specifically looking at Housing Disrepair claims (which are currently exempt)
- Review of operation of exceptional circumstances and unreasonable behaviour tests
It was also confirmed that the exemption on Housing Repair claims from Fixed Recoverable Costs will remain in place unless and until someone does something about it. The view conveyed was that the exemption will continue until at least the stocktake is sorted out. It should be said (though not addressed today) that the general expectation is that Housing Disrepair will be brought into Fixed Recoverable Costs and the exemption will fall away, possibly as early as 2026. The CPRC have requested that the MoJ make a public statement so firms are aware of what is happening. It's unclear if or when such a statement may be made.
The update today signposts some of the issues the MoJ intend to look at with respect to Fixed Recoverable Costs demonstrating the intention to take a wide review of the reforms. The devil, as always, will be in the detail when the first paper is published in the Autumn this year and the fuller report is published next year. Practitioners are encouraged to engage with and respond to the consultation once it is both detailed and opened.
It is also worth restating that it is understood from previous updates that the fuller review next year will finally look at uprating Portal fixed costs which have remained static since inception.
We will continue to keep matters under review and will share further updates as and when they become available.
Should you have any queries arising from this article or upon costs generally then please do not hesitate to get in touch with our friendly team either via phone 01482 534567 or e-mail info@carterburnett.co.uk.
Tagged as: Agency Fees, Clinical Negligence, fixed costs, Fixed Recoverable Costs, Housing Disrepair, Part 36
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