In this article
How has the Fixed Recoverable Costs regime changed?
The FRC now covers almost all claims worth up to £100,000, except where a judge deems there is an exception, or if the claim falls under certain categories. As the FRC broadly covers claims based on their values, most business debts, property disputes and professional negligence claims now fall under its guidance.
It also introduces a new ‘intermediate track’, outside of the existing tracks, for claims worth between £25,000 to £100,000. Previously all claims worth over £25,000 were assigned to the ‘multi-track’.
Finally, the FRC also introduces new complexity bands applicable for fast track and intermediate track claims. These complexity bands help to categorise claim types and assist legal professionals and the parties involved in a claim to understand where the FRC applies.
The FRC will not apply to claims worth over £100,000.
Why has the Fixed Recoverable Costs regime been extended?
The intention behind the FRC extension is to enable people to better predict legal costs for all parties involved in a case. This could incentivise earlier settlements and decrease the need for people to go to court.
What happens to claims issued before 1 October 2023?
If your claim was issued (i.e. a court has accepted your case) before 1 October 2023, the new Fixed Recoverable Costs regime won’t apply.
For claims issued on or after 1 October 2023, the new Fixed Recoverable Costs regime will apply.
What are ‘tracks’ and how do they affect my recoverable costs?
Cases are categorised into different ‘tracks’ based on their value, and these are determined by the court.
This table can help you to understand the track allocations, and whether the fixed costs regime applies:
|Track||Claim value||FRC applicable before 1 October 2023?||FRC applicable after 1 October 2023?|
|Small claims track||Up to £10,000||Mainly personal injury claims only||Yes and to more claim types, but exceptions still apply|
|Fast track||Between £10,000 and £25,000||Mainly personal injury claims only||Yes and to more claim types, but exceptions still apply|
|Intermediate track||Between £25,000 and £100,000||Not applicable as this is a new track||Yes, but exceptions apply|