Significant increase to court fees expected on 9 March 2015

United Kingdom

This article was produced by Olswang LLP, which joined with CMS on 1 May 2017.

On 5 February, we reported that the Government had announced plans to introduce increased fees for issuing money claims over £10,000 (see "Significant increase to court fees on the horizon" here).

After the House of Lords approved the relevant draft statutory instrument last night, it is now expected that the increased fees will take effect on 9 March - next Monday.

The new issue fee will be calculated as 5% of the value of the claim, up to a maximum fee of £10,000 (the current maximum is £1,920). For claims valued at circa £200,000 this represents a six-fold increase on the current fee. A slightly lower fee of 4.5% of the value of the claim will apply to claims over £10,000 issued in the County Court Business Centre or through Money Claims Online. Issue fees for claims up to £10,000 remain unchanged.

The Government's plans have met with widespread concern in the legal profession. In particular, the Law Society has issued a pre-action protocol letter for judicial review to challenge the increase in court fees (see the Law Society's website here).