Fixed Recoverable Costs Stocktake
The long awaited Fixed Recoverable Costs Stocktake has been published online today (31 October 2025). The Interim Implementation Stocktake will be followed by the Ministry of Justice's full Post Implementation Review which will commence in 2026. The Stocktake allows interested parties to provide feedback and evidence with responses open until 5 January 2026.
What is it?
The Interim Implementation Stocktake is an opporunity for the judiciary and the MOJ to take stock and conduct a review of the extended Fixed Recoverable Costs regime which came into force on 1 October 2023. The evidence gatherine exercise will be used to shape and inform the MOJ's full review next year. The CPRC and MOJ state that "respones to [the] consultation will help to identify, triage and address any issues which have arisen as a consequence of the wide-ranging changes to the FRC regime,"
How do I take part?
The CPRC have asked for written responses to be provided by 5 January 2026 to be sent to CPRCconsultation@justice.gov.uk with 'Fixed Recoverable Costs (FRC) Interim Implementation Stocktake" in the subject title. Responses should be provided in either Word or PDF. The consultation contains 31 questions with an opportunity to provide further information or views.
What are they consulting on?
The consultation raises a significant number of questions, which are summarised below:
1. General - The CPRC are inviting views as to how to well the FRC and Intermediate Track have been operating, whether there is sufficient information of FRC available and the effect of FRC on Online Civil Money Claims and Damages Claims Portal services.
2. Complexity Bands - Questions centre around where complexity bands support proportionality, whether they simplift the costs determination process and whether there are any issues to raise in relation to them.
3. FRC in Part 36 Offers - The CPRC ask whether there are any issues with the interpretation of Part 36 as a result of the changes to Part 45 and whether it is sufficiently clear that additional costs relating to vulnerability or exceptional circumstances would be included in costs consequences under Part 36.
4. Housing Claims - The CPRC are seeking evidence on where costs are awarded in disrepair and possesion claims and what the level of costs are. They also invite views as to whether such costs are proportionate and as to how FRC might work for possession and disrepair claims. They also invite views as to any potential risks with extending FRC to housing claims.
5. Exemptions - The CPRC ask whether the exemptions under Part 26.9(10) are sufficiently clear, whether any amendments are required to the same and whether any of the exemptions should be reviewed. Current exemptions include mesothelioma claims, clinical negligence claims (subject to exceptions), claims for damages in relation to harm, abuse or neglect involving children or vulnerable adults, claims against a public authority for trespass to the person, a claim which the court could order to be tried by jury and claims against the police (latter two subject to exceptions).
6. Application of FRC in different types of claim - Feedback is sought on how FRC is operating in relation to; a. claims for non-monetary relief, b. where more than one claimant is represented by the same lawyer, c. counterclaims, d. where there is a preliminary issue trial and e. Noise-Induced Hearing Loss.
7. Application of FRC to Clinical Negligence - Evidence is specifically sought on the implementation of fixed costs in Clinical Negligence claims. The CPRC have asked what proportion of Clinical Negligence claims have been allocated to the Intermediate Track, the level of costs awarded and the complexity bands generally assigned.
8. Unreasonable Behaviour - Views are sought on whether respondents are aware of any applications made to decrease or increase the FRC payable on the basis of unreasonable behaviour and whether any amendments to the rules around this at CPR 45.13 are required.
9. Inflation - The CPRC state that the Government have committed to reviewing whether the FRC figures need to be adjusted for inflation in 2026 and ask whether respondents have any reason as to why they should be reviewed sooner.
10. Disbursements - Questions are raised as to views on the recovery of disbursements, how the 20-page limit for experts reports in the Intermediate Track is working and whether any requests have been made to extend the 20-page limit.
11. Fixed Costs Determination - The process for resolving Fixed Costs disputes came in to effect in October 2024. Views are sought on the ease of submitting a Precedent U (Fixed Costs Schedule).
12. Vulnerability - Part 45 allows for a departure from fixed costs where vulnerability has required additional work to be undertaken. Evidence/estimates are sought as to how often a party or witness vulneability necesitates additional work and details as to what this work is and how long. They also seek views on whether any amendments to 45.10 governing vulnerability in FRC is required.
13. Any other thoughts - The consultation has scope for further views on any issues not covered by any of the questions within it. The eagle eyed will spot that the final question (question 31) asks for "any further information or views to provide which are not covered by Questions 1-28?". It seems that this is a typographical error and should refer to Questions 1-30.
We are always happy to talk any aspect of costs! Should you have any queries arising from this blog or generally then please get in touch for a chat either via phone 01482 534567 or e-mail info@carterburnett.co.uk. Follow us on LinkedIn to keep up-to-date with developments.
