Disputes about costs are a routine feature of litigation in England and Wales. To bring consistency and fairness, the Courts rely on the guideline hourly rates (GHR) as a starting point for assessing costs. These figures, published by the Senior Courts Costs Office (SCCO), provide a starting point when judges consider whether the hourly rates claimed are reasonable.

The GHR are not strict caps, but a guide reflecting market conditions. Where solicitors claim above these figures, they must justify their position to warrant deviation from the guidelines, particularly in light of the indemnity principle, which prevents recovery of costs beyond what a client is liable to pay.

What are the Guideline Hourly Rates in Liverpool – National 1 Band

Liverpool is one of the largest legal hubs outside Central London, and is placed in the National 1 category. This band applies to major regional centres such as Manchester, Leeds, and Birmingham, which host complex litigation across a wide spectrum of work.

While London bands are higher, particularly for commercial and corporate work, the National 1 rates ensure Liverpool firms can recover more than solicitors in smaller towns (National 2 and historically also National 3).  Owing to location becoming less of a factor in recent years on the cost of legal services, the difference between National bands has diminished since 2010, and also led to the removal of a National 3 band prior to 2010.

How Rate Increases Are Applied

Annual rate increases are linked to the Service Producer Price Index (SPPI), which measures inflation across professional service industries.

The most recent adjustment applied a 3.65% uplift and came into effect in January 2025.

This system was designed following recommendations by the Civil Justice Council and its specialist working group. Oversight rests with Sir Geoffrey Vos, Master of the Rolls, who as the Head of Civil Justice, ensures the process reflects fairness for parties while recognising the realities faced by practitioners.  Prior to 2021, there had not been increases in the guideline hourly rates since 2010, and it is therefore important that regular review of the GHRs is undertaken to prevent stagnation in the market, as well as 

Grades of Fee Earner

The GHR distinguishes between grades of lawyer:

• 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.

These guidelines ensure that the most senior fee earners undertaking complex matters are charged at higher levels, while routine tasks by junior staff are billed at lower rates.

Current Guideline Hourly Rates, Liverpool (2025)

When Courts May Allow Higher Rates

The guideline hourly rates are merely a reference point, not a ceiling. Courts may approve uplifts above these levels where justified. Examples include:

• Complex commercial work requiring technical expertise.
• Urgency – e.g. emergency injunctions or time-sensitive applications.
• Value or significance – high-value disputes or matters of public importance.
• Specialist expertise – rare or market-leading practitioner skills.
• Market practice – evidence of what clients in Liverpool are willing to pay.

However, practitioners are encouraged to provide clear evidence when seeking an enhancement, as the courts will not simply grant higher rates without justification.

How ARC Costs Can Assist

ARC Costs regularly support both Paying and Receiving Parties in Liverpool and nationwide. Our team prepares Bills of Costs and Costs Budgets, negotiates during detailed assessments, and manages Points of Dispute and Replies.

The SCCO’s rates are not fixed rules, but they remain an essential framework for the courts. With our expertise, we can help recover fair costs or challenge unreasonable claims.

For expert advice, contact us on 01204 397302 or email info@arccosts.co.uk. Alternatively, complete our online enquiry form and one of our specialists will be in touch.

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