The Cost of Litigation: How Legal Costs Have Changed in 10 Years

How much has the cost of litigation increased over the last decade?

There is no single figure for the average cost of bringing a court case in England and Wales. A straightforward dispute resolved shortly after issue bears little resemblance to a complex commercial claim involving disclosure, expert evidence, multiple applications and a lengthy trial.

There are, however, several measurable components of litigation expenditure.

ARC Costs has examined solicitor Guideline Hourly Rates, current court fees and other costs involved in civil proceedings to consider how the financial landscape of litigation has changed.

Key litigation costs statistics

Our analysis found:

• the highest Grade A London Guideline Hourly Rate is £579 in 2026;

• the National 1 Grade A rate is £295;

• a Grade D fee earner in London 1 has a 2026 guideline rate of £210;

• issuing a money claim worth more than £200,000 currently attracts a court fee of £10,000;

• issuing a claim worth between £10,000 and £200,000 generally attracts a fee equivalent to 5% of the claim;

• an intermediate or multi-track hearing currently attracts a fee of £1,334;

• a fast-track hearing fee is £619;

• requesting a default costs certificate currently costs £82; and

• requesting or applying to set aside a default costs certificate currently costs £152.

These figures do not tell us what an individual case will cost, but they illustrate the different expenses that can arise before professional fees, counsel, experts and other disbursements are considered.

Solicitor Guideline Hourly Rates in 2026

Guideline Hourly Rates are used as guidelines when carrying out summary assessment of court costs.

They are not mandatory rates and should not be treated as a fixed tariff. Nevertheless, they provide a useful benchmark when considering recoverable legal costs.

The rates effective from 1 January 2026 are:

A Grade A fee earner is a solicitor or legal executive with more than eight years’ experience, while Grade D includes trainee solicitors, paralegals and other fee earners.

The difference between geographical areas can therefore be considerable.

A Grade A London 1 guideline rate is almost twice the National 2 figure.

How have solicitor hourly rates changed?

One reason litigation costs have received increasing attention is the substantial movement in Guideline Hourly Rates after a lengthy period in which the figures remained unchanged.

The rates were substantially revised in 2021, followed by further changes.

Since 2024, Guideline Hourly Rates have been subject to annual adjustment, with the latest rates taking effect from 1 January 2026.

The current London 1 Grade A rate of £579 per hour illustrates the potential significance of solicitor time in complex litigation.

If 100 hours of Grade A solicitor time were recoverable at that guideline figure, the fees would amount to £57,900 before VAT.

However, Guideline Hourly Rates remain guidelines rather than guaranteed recoverable rates.

The appropriate rate in an individual case can still be disputed.

How much does it cost to issue a court claim in 2026?

Solicitor fees are only one component of litigation expenditure.

Court fees can also be significant.

Current HM Courts & Tribunals Service fees for issuing a money claim include:

For a substantial commercial dispute, the £10,000 issue fee is therefore incurred before considering solicitor costs, counsel, experts and other litigation expenditure.

Hearing fees add to the cost

A case proceeding towards trial can attract further court fees.

Current hearing fees include:

Fast track: £619

Intermediate or multi-track: £1,334

Small claims hearing fees vary according to the amount claimed, from £27 for the lowest-value claims to £346 for claims exceeding £3,000.

These amounts are court fees only.

Preparing for the hearing can result in substantially greater professional costs, particularly where solicitors, counsel, witnesses or experts are involved.

Applications can increase litigation costs quickly

One reason it is difficult to calculate an “average cost of litigation” is that two claims of exactly the same value can develop very differently.

A relatively straightforward £500,000 contractual dispute might progress without substantial interlocutory litigation.

Another claim for the same amount could involve applications concerning disclosure, amendments, relief from sanctions, security for costs or expert evidence.

Every additional application can generate solicitor time, counsel’s fees, court fees and potentially an adverse costs order.

The application fee itself can therefore be only a small part of the real financial impact of an application.

Expert evidence can transform the economics of a case

Expert fees are another important component of litigation expenditure.

Clinical negligence litigation might require several medical experts. Commercial litigation may involve forensic accountants, valuers, surveyors or technical specialists.

The cost is not limited to obtaining an expert’s initial report.

Experts may need to review extensive documentation, participate in conferences, respond to questions, prepare joint statements and attend trial.

Solicitors and counsel must also consider and work with that expert evidence.

A case involving several experts can therefore become significantly more expensive than a superficially similar dispute that turns primarily on legal interpretation.

Costs budgeting has become central to controlling expenditure

Costs management is now an important feature of civil litigation.

In cases subject to costs budgeting, parties provide estimates of the costs they expect to incur across different phases of the proceedings.

The court may then approve or agree those budgets.

Costs budgeting does not mean litigation becomes inexpensive. Instead, it provides greater visibility over anticipated expenditure and enables the court to manage future costs.

For solicitors, this means costs strategy needs to be considered alongside litigation strategy.

A decision to obtain additional expert evidence, substantially expand disclosure or make an application can affect both the client’s expenditure and the amount potentially recoverable from an opponent.

Winning does not mean recovering every pound spent

The increasing cost of litigation also makes the distinction between costs incurred and costs recovered particularly important.

A client may agree to pay its solicitor a particular hourly rate.

That does not automatically mean an opponent will ultimately be required to reimburse that same rate if a costs order is obtained.

Recoverable costs may be negotiated or determined through summary or detailed assessment.

The court can consider issues including hourly rates, time spent, proportionality, the basis of assessment and whether particular work was reasonably incurred.

The difference between solicitor-and-client expenditure and inter partes recovery can therefore be significant.

Detailed assessment has its own costs

Disputes about legal costs can themselves generate further expenditure.

Where the amount payable under a costs order cannot be agreed, the receiving party may commence detailed assessment proceedings.

The paying party can serve Points of Dispute challenging the Bill, followed by Replies from the receiving party.

There may then be negotiations, Part 36 offers, provisional assessment or an attended detailed assessment hearing.

The court system also imposes fees at different stages.

Current fees include:

• £82 to request a default costs certificate;

• £152 to request or apply to set one aside; and

• between £398 and £6,640 to request a detailed assessment where the applicant is not legally aided, depending upon the amount of costs claimed.

For example, where more than £500,000 in costs is claimed, the current detailed assessment fee is £6,640.

The commercial value of continuing a costs dispute must therefore be considered alongside the amount actually in issue.

Is litigation becoming more expensive?

Important components of litigation expenditure have undoubtedly increased or been uprated over time.

Solicitor Guideline Hourly Rates have been substantially revised, and HMCTS continues to review court and tribunal fees.

In July 2026, another series of court fee changes took effect. The Ministry of Justice said the changes were intended to strengthen cost recovery, improve consistency and help maintain court services.

However, it would be misleading to suggest that every court case now costs a fixed percentage more than it did a decade ago.

Technology, remote working, electronic documents, fixed recoverable costs, costs management and changes in litigation practice have all affected how legal work is undertaken.

The complexity and conduct of the individual case remain critical.

What actually determines the cost of litigation?

The value of the claim is only one factor.

The eventual cost can be influenced by:

• the complexity of the legal and factual issues;

• the volume of disclosure;

• the number of witnesses;

• expert evidence;

• the length of trial;

• interim applications;

• the conduct of the parties; and

• whether and when settlement is achieved.

A high-value dispute that settles early can sometimes cost substantially less than a lower-value case fought through numerous applications and a trial.

This is why effective costs management matters.

Our commentary

The figures demonstrate why legal costs need to be managed throughout litigation rather than considered only after the substantive dispute has ended.

Hourly-rate benchmarks are substantial, court fees continue to change and complex cases can generate significant expert and counsel expenditure.

At the same time, the recoverability of those costs remains subject to the applicable costs rules.

For receiving parties, recording and presenting expenditure correctly can materially affect recovery.

For paying parties, a substantial Bill of Costs should not automatically be treated as the amount that must ultimately be paid.

The economic risk of litigation therefore comes from two directions: what a party spends pursuing or defending the case and how much of that expenditure can ultimately be recovered from its opponent.

How ARC Costs can help

ARC Costs helps solicitors and litigants manage the financial consequences of litigation.

Our work includes costs budgeting, Bills of Costs, Points of Dispute, Points of Reply, costs negotiations and detailed assessment proceedings.

We act for both paying and receiving parties across complex civil litigation, helping clients understand what has been claimed, what may be recoverable and where costs can properly be challenged.

As the financial stakes of litigation increase, specialist costs advice can help ensure costs are managed throughout the case rather than becoming an unexpected issue at its conclusion.

Data sources and methodology

This article uses current published information from HM Courts & Tribunals Service and the Ministry of Justice.

Sources:

HM Courts & Tribunals Service – Solicitors’ Guideline Hourly Rates
https://www.gov.uk/guidance/solicitors-guideline-hourly-rates

The page provides the Guideline Hourly Rates effective from 1 January 2026 for Grades A to D across London and the National bands.

HM Courts & Tribunals Service – Civil Court Fees (EX50)
https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50/civil-court-fees-ex50

This provides the current issue fees, hearing fees and costs proceedings fees used in this analysis.

HM Courts & Tribunals Service – Full List of Civil and Family Court Fees (EX50A)
https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-full-list-ex50a

This provides the full schedule of applicable civil and family court fees and records historic updates to the fee schedule.

Ministry of Justice – Court and Tribunal Fees: Updates from July 2026
https://www.gov.uk/government/news/court-and-tribunal-fees-updates-from-july-2026

This explains the latest changes to court and tribunal fees, which took effect in July 2026.

All rates and fees are correct according to the published information available at the time of writing. Court fees and Guideline Hourly Rates can change, so the latest official guidance should always be checked before relying upon a particular figure.

Journalists and researchers: Statistics and calculations from this analysis may be quoted with attribution and a link to ARC Costs.

Follow Us