In criminal law cases, determining who should bear the cost of legal proceedings is a crucial consideration – especially for defendants who are acquitted or whose cases are discontinued. Where eligible, such defendants may recover their legal defence costs from Central Funds, a government fund intended to cover legal costs incurred by individuals or entities under specific circumstances, most commonly when a defendant is found not guilty or when a private prosecutor secures a conviction.

The Criminal Procedure Rules 2020 (as amended) provide the procedural framework within which these claims are made, aligning criminal procedure with established costs law principles.

If you need support with claiming costs from Central Funds, get in touch with ARC Costs for expert assistance.

What are costs from Central Funds?

Central funds are government-allocated resources administered by the Ministry of Justice (MoJ), intended to cover certain costs incurred by individuals involved in criminal proceedings. These funds play a crucial role in promoting fairness within the justice system and serve two primary purposes:

• Reimbursing acquitted defendants for reasonable legal costs incurred in their defence
• Covering court-ordered expenses, such as fees for expert witnesses and interpreters appointed or summoned by the court.

The underlying principle behind Central Funds is to prevent innocent individuals from suffering financial hardship when defending themselves against criminal charges – particularly in situations where legal aid is not available or has been denied.

Several key legislative instruments govern the recovery of costs from Central Funds:

• Prosecution of Offences Act 1985 (POA 1985) – notably Sections 16 to 21, which set out the statutory framework for awarding costs from Central Funds.
• Criminal Defence Service Act 2006 – covering aspects of criminal defence funding
• Costs in Criminal Cases (General) Regulations 1986 (as amended) – providing detailed guidance on how costs can be claimed and assessed.
• Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012) – introducing significant reforms, including limitations on recovering defence costs for privately funded defendants that cap recovery at legal aid rates.

Who can claim costs from Central Funds?

The Criminal Procedure Rules (Parts 45 and 46) set out the practice and procedure for applying costs orders, including the recovery of costs from Central Funds. According to Rule 45.4(10) of the Criminal Procedure Rules, a court may make an order for payment of costs out of Central Funds in a range of scenarios involving defendants. These include:

(a) For a defendant:

1. When the defendant is acquitted
2. When the prosecution does not proceed with the case
3. When the Crown Court allows all or part of the defendant’s appeal from a magistrates’ court
4. When the Court of Appeal allows all or part of the defendant’s appeal from the Crown Court
5. When the Court of Appeal rules on a prosecutor’s appeal under:

• Part 37 (rulings at a preparatory hearing or jury tampering), or
• Part 38 (rulings adverse to the prosecution).

6. When the Court of Appeal rules on a reference made by the Attorney General under Part 41, relating to points of law or unduly lenient sentences
7. When the Court of Appeal hears and appeal (brought by someone other than the defendant) concerning a Serious Crime Prevention Order.
8. When the defendant is discharged under the Extradition Act 2003, either under Part 1 or Part 2

These provisions are supported by the relevant statutory framework, including:

• Section 16 of the Prosecution of Offences Act 1985
• Regulation 14 of the Costs in Criminal Cases (General) Regulations 1986
• Section 36(5) of the Criminal Justice Act 1972
• Schedule 3, Paragraph 11 of the Criminal Justice Act 1988
• Article 14 of the Serious Crime Act 2007 (Appeals under Section 24) Order 2008
• Sections 61 and 134 of the Extradition Act 2003

Eligibility criteria

1. Acquitted Defendants (Non-Legal Aid)

Privately funded defendants who are acquitted may apply for an award to recover their reasonable costs, capped at legal aid rates unless the prosecution was demonstrably unreasonable or negligent.

2. Advocates and Solicitors

Legal representatives may claim costs for appearing in court, including duty solicitors or agents, where appropriate and where services were not publicly funded.

3. Witnesses and Other Parties

Witnesses summoned to give evidence, or persons otherwise compelled to attend, may recover their reasonable expenses from central funds.

4. Pro Bono Representation

Since the implementation of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, pro bono lawyers can apply for nominal costs from central funds via a “costs order for pro bono representation”.

Costs from Central Funds – The application process

Timing of the application – An application for an award from central funds must typically be made at the conclusion of the proceedings. Courts expect these applications to be made promptly – ideally before or at the time of final disposal (e.g. acquittal, dismissal, administrative errors, or judicial oversight).

Mode of application – Applications can be made orally or in writing, depending on the court’s preference and the complexity of the case.

• Oral applications: Often made immediately after acquittal or case dismissal, particularly in Magistrates’ Court.
• Written applications: More common in the Crown Court or where the case involves extensive representation or detailed costs schedules.

Necessary documentation – To support the application, the following should be prepared:

Costs Schedule or Bill

• Must be itemised and show all relevant time entries and disbursements
• Should reflect time spent on specific activities (e.g. preparation, advocacy, travel).
• Hourly rates should align with those allowed under legal aid, unless justification is provided for higher rates.

Supporting evidence

• Court documents confirming outcome (e.g., acquittal or dismissal)
• Proof of private funding arrangements (for defendants)
• Attendance notes or court logs (for advocates or witnesses)
• Any exceptional circumstances justifying departure from standard rates

Representation status

• Where pro bono work has been provided, a statement to this effect should be included, referencing section 194 of the Legal Services Act 2007 where applicable.

Assessment process – Once submitted, the application is usually assessed by the court that disposed of the case. The judge has discretion to:

• Award full amount of costs or partial costs
• Limit costs to legal aid rates
• Refuse the application (e.g., if the defendant’s conduct contributed to the proceedings)

If the court grants an order for costs, the matter is passed to the Legal Aid Agency’s National Taxing Team (NTT) for final assessment and payment.

What costs are recoverable from Central Funds?

Costs recoverable from central funds in England and Wales depend on the type of case and the basis on which the claim is made. Central funds generally reimburse legal costs in criminal proceedings where the applicant is entitled under the Prosecution of Offences Act 1985 and associated regulations.

Here’s a breakdown of recoverable costs from central funds:

Recoverable Costs from Central Funds

Solicitor and Advocate’s Fees

• Preparation time (including case preparation, correspondence, and conferences)
• Attendance at court (hearings, trials, sentencing)
• Advocacy fees (for in-house solicitors or external counsel)
• Travel and waiting time, where reasonably incurred

Disbursements

These must be reasonable and necessary to the conduct of the case. Common examples:

• Expert witness fees (e.g. medical, forensic)
• Interpreter/translation costs
• Court fees (where applicable)
• Document production (copying, scanning)
• Travel expenses (e.g. mileage, train fares, accommodation if justified)

Counsel’s Fees

If independent counsel was instructed, their reasonable fees can be claimed:

• Based on either a brief fee and refreshers or hourly rate (with proper breakdown)
• Must be proportionate and justified, particularly in magistrates’ court matters

VAT

• VAT is recoverable only if the claimant is not VAT-registered or cannot recover input VAT
• Claimants must state their VAT status in the AF1 form

How can ARC Costs Assist?

ARC Costs are a team of experienced Costs Lawyers and Costs Draftsmen who regularly assist solicitors in recovering costs from Central Funds. The process of recovering costs from central funds can be complex, requiring a detailed understanding of the relevant legislation. ARC Costs provides expert guidance through each step of the process, from advising on eligibility to preparing and submitting defendant’s costs orders. We ensure that all documentation complies with the Legal Aid Agency’s requirements, which is crucial in avoiding delays or reductions in the amount recovered.

By leveraging our in-depth knowledge of legal costs and the nuances of central funds claims, we help legal representatives and their clients navigate common pitfalls, such as time limits for submission or disallowed items. Our team is skilled in drafting detailed bills of costs and providing persuasive justifications for all elements of the claim, increasing the likelihood of full recovery. Additionally, should any issues arise during the assessment process, we can provide advocacy and negotiation support to challenge adverse decisions or reductions.

Should you wish to discuss your costs query with us, please contact us on 01204 397302 or email the team at info@arccosts.co.uk. Alternatively, you may complete the enquiry form on our website and a costs expert will contact you to discuss your query.

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