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16 April 2015

Ministry of Justice increases court fees for claims by over 600%

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16 April 2015

Ministry of Justice increases court fees for claims by over 600%

The Ministry of Justice (MoJ) has recently announced increases in court fees for money claims by over 600% 

The announcement follows a consultation over proposals submitted back in December 2013 and the increase in court fees will affect both 'specified' and 'unspecified' money claims for the recovery of money worth £10,000 or more. 

For claims valued above £10,000 and below £200,000, the fee will be five per cent of the value of the claim, capped at a maximum fee of £10,000. This would mean for a money claim of £50,000 claimants who would have previously incurred a minimal fee of £340.00 will now be facing a fee of £2,500, an increase of 635%.

The fee increases for money claims:

  • £1 - £9,999 – fees remain unchanged
  • £10,000 - £199,999 – incurs a fee of five per cent of the claim
  • £200,000 and above – incurs a fixed fee of £10,000

These changes have been challenged by the Law Society, the independent professional body for solicitors, however the MoJ maintain that 90% of cases will not be affected and advise that the money will be retained by the courts to invest in better service provision.

The Law Society president Andrew Caplen said: 

“The government's policy on 'enhanced court fees' amounts to a flat tax on those seeking justice…[and] hikes will price the public out of the courts and leave small businesses saddled with debts they are due but unable to afford to recover.”

“State provision for people to redress wrongs through the courts is the hallmark of a civilised society.”

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Manzurul Islam

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Expert Commentary

“There is some good news to arise as claimants issuing through Money Claims Online will be eligible for a 10% discount on the fee, providing that it is between £10,000 and £99,999. However, even with this discount applied, a fee for a money claim of £50,000 would still subjected to an increase of over 560% compared with the previous fee structure.”

“Consultation continues on fee increases for possession claims, applications without notice or consent and application on notice with consent which could also be subjected to similar price hikes.”

This is not legal advice; it is intended to provide information of general interest about current legal issues.

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