When costs are disputed in litigation, the amounts at stake can often match, or even exceed the value of the underlying claim itself, particularly in low value litigation. To help ensure fairness and instill proportionality in costs pursuant to the overriding objective set by CPR 1.1, the Courts in England and Wales refer to the Solicitors Guideline Hourly Rates (GHR), which act as a starting point for assessing what level of legal costs are reasonable.

These figures, issued by the Senior Courts Costs Office (SCCO), are not strict caps but rather a guide to assist judges during summary and detailed assessments.

If a solicitor wishes to charge above these levels, they must justify why higher rates are appropriate in the circumstances. In some cases, the indemnity principle may also be relevant, preventing a party from recovering more in costs than they have agreed to pay their own Solicitor.  In the event that a Solicitor’s charging rates are less than the applicable guidelines, they are still bound by the indemnity principle to claim the lower rates in their retainer.

What are the Leicester Guideline Hourly Rates?

Leicester is classified within the National 2 category. This band covers many medium-sized cities and towns across England and Wales.

Being part of National 2 means that hourly rates available to Leicester solicitors are set less than those in National 1 centres, such as Manchester, Birmingham, and Leeds, and significantly lower than the London bands.  Historically pre-2010, there was a National 3 rate set for locations below National 2, but over time and with location becoming less of a factor to litigation cost, the need for National 3 ceased, and the difference between National 1 and 2 rates is now marginal.

Annual Updates to the Rates

The guideline rates are generally revised each year (though between 2010 and 2021 they were not) so they reflect real-world changes in the cost of providing professional services. The adjustment is linked to the Service Producer Price Index (SPPI) which measures inflation in service industries.

Based on SPPI data to December 2023, a 3.65% increase was applied with effect from 1st January 2025 (later increased again in January 2026). This approach followed recommendations of the Civil Justice Council, ensuring the guidelines remain both practical and evidence-based.

Responsibility for oversight lies with the Master of the Rolls, Sir Geoffrey Vos, who, as Head of Civil Justice, ensures the balance between fairness to parties and recognition of market realities.

Grades of Fee Earner

The GHR distinguishes fee earners by seniority:

• Grade A – Solicitors or legal executives with over 8 years’ post-qualification experience.
• Grade B – Solicitors or legal executives with over 4 years’ experience.
• Grade C – Other solicitors, legal executives or equivalent.
• Grade D – Trainee solicitors, paralegals, or junior staff.

This framework ensures that the most senior lawyers, with responsibility for complex and strategic work, are charged at higher levels than junior staff who carry out more routine tasks.

Current Guideline Hourly Rates, Leicester (2026)

When Courts Allow Higher Rates

Although the solicitors guideline hourly rates provide an essential benchmark, they are not inflexible. The courts may allow uplifts above the guideline figures where justified, for example:

• Complexity – Where the case requires specialist expertise or highly technical input.
• Urgency – Where urgent injunctions or time-critical applications are required.
• Value or significance – Particularly high-value claims or cases of public importance.
• Specialist expertise – Where a solicitor has rare or market-leading knowledge.
• Market practice – Evidence of what Leicester clients typically pay for comparable work.

To succeed, a solicitor must present clear justification, often within costs schedules and supporting statements.

How ARC Costs Can Help

At ARC Costs, we regularly act in relation to costs recovery and challenges in Leicester and across the country. Our work includes drafting Bills of Costs and Costs Budgets, negotiating during detailed assessments, and dealing with disputes concerning hourly rates.

The guideline figures are a useful reference point, but they are only guidelines. A judge may award more or less depending on the complexity of the matter, the urgency of the work, or the solicitor’s expertise.

We also represent Paying Parties, resisting attempts to exceed the guideline figures and ensuring clients are not exposed to disproportionate or unreasonable costs.

To speak with one of our team, call 01204 397302 or email info@arccosts.co.uk. Alternatively, fill in our online enquiry form and we will contact you promptly.

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