What are the solicitors guideline hourly rates?

Solicitors’ guideline hourly rates have been established for all Solicitors in England and Wales, splitting into National 2 (Outer City), National 1 (City Centre) and London (City of London, Inner London and Outer London) and are set out in the Senior Courts Costs Office (SCCO) assessment guide. 

These guideline figures are used as a starting point for costs judges when making their summary assessment of costs in Fast Track Trials or application hearings. They should be considered by Solicitors, Costs Lawyers, and Costs Draftsmen when any issue as to costs arises, starting with the retainer and costs budgeting; however, no party is bound by the same and can claim above or below the guidelines in any retainer.

Updated guideline hourly rates

In December 2023, Sir Geoffrey Vos, the Master of the Rolls and Chair of the Civil Justice Council, announced that the 2021 guideline hourly rates for solicitors would be uplifted starting from 1st January 2024. This led to a guideline rate increase for solicitors. This decision followed recommendations from the Civil Justice Council Costs Review, published in May 2023.

The updated rates will now be adjusted annually for inflation using the Services Producer Price Index, with variations based on the solicitor’s experience and geographical area of practice. Here are the key updated rates:

• Grade A (Solicitors and legal executives with over 8 years’ experience): Rates range from £272 in National Band 2 to £546 in London 1.
• Grade B (Solicitors and legal executives with over 4 years’ experience): Rates range from £233 in National Bands 1 and 2 to £371 in London 1.
• Grade C (Other solicitors or legal executives and fee earners of equivalent experience): Rates range from £189 in National Band 2 to £288 in London 1.
• Grade D (Trainee solicitors, paralegals, and other fee earners): Rates range from £134 in National Bands 1 and 2 to £198 in London 1.

It should be noted that Fixed Recoverable Costs are subject to a separate inflationary review.

Are solicitors required to follow the guideline rates?

Despite the guidelines, solicitors sometimes set their own hourly rates and court assessments allow enhanced rates in certain circumstances. Nevertheless, these rates can be disputed by the paying party and the Court. Sometimes, in detailed assessment proceedings, the Court can question the hourly rate submitted by a party (if it has been challenged) and can compel them to decrease it. 

There have been a number of recent decisions addressing the issue of solicitors’ guideline hourly rates and the application of the same. In the case of Samsung Electronics Co Ltd v. LG Display Co Ltd [2022] EWCA Civ 466, the Court of Appeal emphasised that even in cases involving very heavy commercial work, any upward departure from the London 1 Guideline Hourly Rates requires a “clear and compelling justification.”

The court noted that these rates already account for the assumption that the litigation qualifies as “very heavy commercial work,” making it difficult to argue for higher rates without strong evidence.

How can ARC Costs assist?

ARC Costs, as well as preparing Bills of Costs and Costs Budgets, frequently manage negotiations during detailed assessment proceedings. We also handle disputes over hourly rates charged as part of cost recovery efforts. It is important to remember that the revised 2024 Guideline Hourly Rates serve only as a reference point. Several factors, such as the solicitor’s expertise and the complexity of the case, may justify claiming a higher rate.

Disputes over the hourly rates claimed can be addressed through Points of Dispute and Replies, and sometimes, oral submissions are necessary during summary or detailed assessments. During these assessments, the costs judge will determine the reasonableness of the rates claimed.

To discuss your legal costs query further, please contact us on 01204 397302 or email on of the team at info@arccosts.co.uk. Alternatively, you may complete our online enquiry form and we will contact you to discuss your query further.

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