Court Fee Increases Of Up To 600% In Force

A leading business lobby group has slammed as "astonishing" fee increases of up to 600% for bringing a money claim case to court.

The Government confirmed in January that the fee for issuing a civil claim worth more than £10,000 would be increased to 5% of the sum claimed, with a maximum fee set at £10,000.

The move, which came into force on Monday, followed a consultation that prompted criticism from senior legal figures, as well as the business community.

Concerns included the possible loss of legal business to competitors abroad and the risk that higher fees would limit justice to those with financial means.

Under the rules, fees on a claim worth £200,000 have been raised by £8,725.

The previous maximum charge for claims over £300,000 was £1,920 but the new requirements herald an increase of £8,080 or 421%.

Adam Marshall, director of policy at the British Chambers of Commerce, said: "We remain concerned that a lot of companies in supply chains could be dissuaded from using the courts to resolve long running late payment disputes.

"At a time when the situation seems to be getting worse not better, restricting access to one potential remedy is not encouraging."

The Government, which stopped short of raising the cost of getting a divorce and other fee reforms, said the vast majority of cases would not be affected by the introduction of the enhanced charge.

It added that the money raised would go towards improving court services at a time when national budgets are squeezed.

Justice Minister Shailesh Vara said: "Access to justice is a fundamental principle of our legal system and this is not threatened.

"90% of the claims will be unaffected by these changes and waivers will also be available for those who cannot afford to pay.

"Our courts play a critical role and it is important that they are properly funded.

"It is only fair that businesses and individuals who can afford to pay and are fighting legal battles should contribute more in fees to ease the burden on hardworking taxpayers.

"Court fees are a small fraction of the overall cost of litigation and Britain's reputation for having the best justice system in the world remains intact."