What are SCCO Guideline Hourly Rates?

The Solicitors Guideline Hourly Rates, issued by the Senior Courts Costs Office (SCCO), remain an essential reference for courts and practitioners when assessing costs. They were created after a detailed review by the Civil Justice Council and approved by the Master of the Rolls, Sir Geoffrey Vos, who is also the Head of Civil Justice in England and Wales.

These rates are not fixed caps but guidelines used primarily on the summary assessment of costs. They provide transparency and proportionate benchmarks when parties dispute legal fees. Courts may depart from the guidelines where complexity or urgency justifies higher remuneration.

Evolution of the Guideline Rates

The most significant modern update came in October 2021, when the Civil Justice Council recommended fresh rates after many years without change (the previous increase in guideline rates had been in 2010, and in the subsequent years, there had been concerns raised with regards to the erosion of these rates due to inflation).

Since 2010, an annual uplift has been applied, linked to the Service Producer Price Index (SPPI). This ensures that rates keep pace with inflation and the true cost of running a legal practice.

In January 2024, a 6% rise was implemented following a consultation. A further adjustment, based on SPPI figures to December 2023, took effect on 1st January 2025, representing a 3.65% increase. This approach ensures rates reflect market conditions without requiring a full structural review each year.

SCCO Guideline Hourly Rates – Grades and Bands

The guideline rates categorise fee earners by experience:

• Grade A – Solicitors or legal executives with over eight years’ post-qualification experience.
• Grade B – Solicitors or legal executives with over four years’ experience.
• Grade C – Other solicitors, legal executives, or fee earners of equivalent skill.
• Grade D – Trainee solicitors, paralegals, and junior staff.

Location also matters. Rates are divided into London 1, London 2, London 3, National 1, and National 2 bands to reflect the differing costs of practice across England and Wales.  In practice, the difference between National 1 and 2 bands has now significantly narrowed, such that in the future they are likely to be homogenised so that there are London and Non-London rates only.  It is likely that continued homogenisation of rates will continue over the years, given that location is generally becoming less of a factor as to whether a Solicitor’s firm is instructed or not in modern litigation, and advances in technology allowing representation from anywhere.

How are Guideline Hourly Rates Used in Practice?

Courts generally expect parties to adhere to the guidelines unless there is clear justification to depart. High-value or technically complex litigation, especially in London 1, can justify rates above the table, but parties must evidence why higher fees are reasonable.

Solicitors should also ensure that retainers and client-care letters anticipate annual changes. Under the indemnity principle, a firm cannot recover more from an opponent than it is entitled to charge its own client.

What are the Current SCCO Guideline Hourly Rates?

The 2025 SCCO Guideline Hourly Rates are shown in the table below: 

Can a Party Deviate from the Guideline Hourly Rates?

In short, yes, but there are several factors to take into account.

The more recently rates have been increased to account for inflation, the less likely a Court is to entertain departure from the guidelines.  As an example, between 2010 and 2020 when guideline rates were not increased, it was much more likely that departure from the guidelines would be permitted on assessment, particularly in the latter years of that time period as it was widely viewed that inflation had significantly eroded the feasibility of the rates.  In practice, many firms were charging significantly in excess of the guidelines.

Common law decisions are often handed down indicating deviation from the guidelines, particularly on detailed assessment, may be considered appropriate in suitably complex or novel cases.  Recent decisions in relation to deviation from the guidelines include:

• Samsung Electronics Co. Ltd & Ors v LG Display Co. Ltd & Anor (Costs) [2022] EWCA Civ 466 (06 April 2022) – The Receiving Party sought rates almost 300% in excess of the guidelines and limited the costs to the guidelines for London 1, on the basis that the justification for these rates was in relation to “very heavy commercial and corporate work by centrally based London firms”.  It was therefore considered to allow in excess of these rates would be inappropriate.  For deviation to take place, it was stated that proper submissions and evidence must be provided in support of the same, and it could not simply be argued that it was “common practice” in a certain area of law to exceed the guideline rates.
• Otto v Inner Mongolia Happy Lamb Catering Management Company Ltd [2024] EWHC 497 (Ch) – The Judge commented that consideration of inflation alone is not a significant enough factor to warrant deviation from guidelines, and that if working remotely had led to a reduction in a firm’s overheads, this should lead to a downwards variation rather than upwards variation.
• Harlow District Council v Powerrapid Limited (Rev1) [2023] EWHC 586 (KB) – Stipulated that the guideline rates did not encompass all types of work, and that specific areas of specialised work could warrant uplifts, and that it was within a Cost’s Judge’s discretion to award enhancement if they saw it fit to do so based on their own experience.

How Can ARC Costs Assist?

ARC Costs, as well as preparing costs instruments and documents, such as Bills of Costs and Costs Budgets, often handle negotiations during detailed assessment proceedings, and deal with disputes between parties in relation to the hourly rates being charged as part of any costs recovery.

Please note that the current SCCO Guideline Hourly Rates remain guidelines only. A number of factors can be taken into account to allow for a higher rate to be claimed in costs, such the expertise of a Solicitor and the complexity of the case.

The issues of the hourly rates claimed in costs can be dealt with through Points of Dispute and Replies, with oral submissions sometimes being required at summary assessment and detailed assessment where a decision on the reasonableness of the rates claimed will be made by the costs judge.

As independent experts, we can also represent Paying Parties in opposing deviation from the SCCO guideline rates, so as to minimise a client’s exposure to excessive or unreasonable legal costs.

To discuss your 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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