The controversial court fees hike went ahead despite a concerted attempt by the legal profession to stop them.
Court fees rose by as much as 600% from the start of this week. Court users will be charged an extra fee of 5% of the value of all claims worth more than £10,000, up to a maximum of £10,000. The government claims this will bring in an extra £120m, but opponents argue it will price individuals and small businesses out of the courts.
Speaking against the proposals, Lord Pannick warned they would do “inevitable and substantial damage to access to justice” and that was “simply perverse for the government to dispute that many small businesses and many personal injury claimants are going to be unable to pay an upfront £10,000 fee as the price of access to the courts”.
He added: “For many people—those suing for debts or to recover compensation for personal injury—litigation is often a necessity to keep your business alive or to maintain any quality of life. The Minister is absolutely right that there are already many impediments to access to justice. That is surely no justification—no excuse—for the state to erect further high barriers.”
The Law Society has launched a judicial review against the fees increase, and the fee rise is unpopular across the legal profession.
Commercial lawyers have warned it could make the English legal system less competitive than international rivals such as Singapore and Dubai.
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