Court Fees set to Increase from 9 March 2015
Back in April 2014 we informed you of the substantial changes which were taking place in relation to the funding of the court system in England and Wales. The rationale for the changes provided by the government was a desire to create a more efficient and financially stable court system. At that time it was suggested that the government had a £125 million deficit in running the court system. As well as structural changes to the court system there were significant increases in court fees.
In January 2015, the government issued its response to a consultation which proposed a further increase in court fees. The government’s response included a proposal for yet further substantial increases. The legal industry as a whole has been vehemently opposed to the proposed increases on the basis that the proposed changes could significantly impact access to justice. Despite growing opposition, we have now been informed that the increases will almost certainly come into effect on 9 March 2015. The proposed changes are due to be debated in the House of Lords on 4 March 2015. However it would appear that save for a political u-turn occurring, the increases will take effect on Monday 9 March 2015.
What are the proposed changes?
On claims with a financial value over £10,000 the applicable court issue fee will be increased to 5% of the value of the claim. There will be a maximum court fee of £10,000. A discount of 10% of the applicable fee will be available where the claim is issued either through money claims online or electronically through a secure data transfer facility.
As an illustration of the changes please see the tables below which highlight the existing fees, alongside the proposed increased fee and the percentage increase.
Table A provides an illustration of the fees where the claim is not issued electronically through the County Court Business Centre.
Table A
Value of Claim | Current Fee (Non CCBC Claim) | Fee Proposed | Increase in Fee | % Increase |
£12,500 | £455.00 | £625.00 | £170.00 | 37% |
£20,000 | £610.00 | £1,000.00 | £390.00 | 64% |
£25,000 | £610.00 | £1,250.00 | £640.00 | 105% |
£30,000 | £610.00 | £1,500.00 | £890.00 | 146% |
£40,000 | £610.00 | £2,000.00 | £1,390.00 | 228% |
£50,000 | £910.00 | £2,500.00 | £1,590.00 | 174% |
£100,000 | £1,115.00 | £5,000.00 | £3,885.00 | 348% |
£150,000 | £1,315.00 | £7,500.00 | £6,185.00 | 470% |
£200,000 | £1,515.00 | £10,000.00 | £8,725.00 | 576% |
Table B provides an illustration of the fees where the claim is issued electronically through the County Court Business Centre (CCBC) reflecting the 10% discount.
Table B
Value of Claim | Current Fee (CCBC Claim) | Fee Proposed | Increase in Fee | % Increase |
£12,500 | £410.00 | £562.50 | £152.50 | 37% |
£20,000 | £550.00 | £900.00 | £350.00 | 64% |
£25,000 | £550.00 | £1,125.00 | £575.00 | 105% |
£30,000 | £550.00 | £1,350.00 | £800.00 | 146% |
£40,000 | £550.00 | £1,800.00 | £1,250.00 | 228% |
£50,000 | £815.00 | £2,250.00 | £1,435.00 | 174% |
What are we doing at Judge & Priestley ?
We are acutely aware that although the changes do not impact claims below the £10,000 threshold the increase of the court fees will have a potential impact on you and your organisation. We will shortly release a paper which will detail the steps we can take together to help to mitigate the impact of the changes. In our view it is vital that creditors do not see the increase as a reason not to robustly pursue debts they are owed and we are keen to work with all of our clients to ensure this does not occur.
If you have any debts over £10,000 and you would like to consider what steps can be taken to accelerate action so as to take advantage of the current lower court fees, please contact your client manager as soon as possible.
Future Changes
The changes due to come into effect on 9 March 2015 are due to be followed by further changes in court fees subject to a consultation period which ended on 27 February 2015. We await the government’s response to that consultation which includes a proposed increase in the court fee for making an application to the court. At present the fee for an application made without notice or with the consent of the other side is £50, it is proposed to increase this fee to £100. Where an application is made with notice, generally where a hearing is required, the fee is currently £155 and this would increase to £255 under the current proposals.
We will keep you abreast of all of the future changes and will advise how such changes, if implemented, might impact your cases.
If you have any queries regarding any of the above, please contact your appointed client manager.