How can we help?


Planned expansion of the Fixed Recoverable Costs scheme

One of the key upcoming changes set to affect dispute resolution in 2022 is the planned expansion to the fixed recoverable costs (FRC) regime.

FRC regimes set out the legal costs a successful party will be able to recover from the unsuccessful party at different stages of the litigation process.

The current regime predominantly applies in low-value personal injury (PI) claims and undefended monetary claims, but new Government proposals will mean the use of FRC will be significantly expanded.

At present, the Government is working towards implementing the proposed changes in October 2022, with the changes set to affect claims where the cause of action (such as the accident or the debt accruing) takes place post-implementation.

Expansion of FRC to the fast track

Under the proposed changes, all fast-track civil claims valued between £10,000 – £25,000 would be subject to FRC. Each claim will be assessed and placed into one of four bands, depending on their complexity.

The proposed bands are as follows:

Banding  Type of claim
Band 1  Non- PI Road Traffic Accident claims, defended debt claims
Band 2 PI Road Traffic Accident claims (covered by the Pre-Action Protocol for PI), holiday sickness claims
Band 3 PI Road Traffic Accident claims (outside the Protocol), employer’s liability accident claims, public liability claims, housing disrepair, other money claims
Band 4 Employer’s liability disease claims (with the exception of noise-induced hearing loss claims), complex housing repair or tracked possessions claims, professional negligence claims, property disputes etc


The legal costs a party can recover under the FRC will depend on the banding and the stage the proceedings come to an end and will be a mixture of a fixed figure and a percentage of damages awarded. For claimants, the percentage will apply to the amount recovered, and for defendants, it will apply to the value as set out in the Particulars of Claim.

The Government is working towards implementing the proposed changes in October 2022, with the changes set to affect claims where the cause of action (such as the accident or the debt accruing) takes place post-implementation.

Extension of the fast track

The fast track itself will also be expanded to include Intermediate cases, valued between £25,000 and £100,000 in damages. These intermediate cases will also be subject to banding according to complexity in the following way:


Type of claim

Band 1 Simple claims with one issue and likely to be one day or less at trial e.g., debt claims or quantum-only PI
Bands 2 and 3 Usual intermediate cases, with straightforward claims in Band 2 and more complex in Band 3
Band 4 Cases with serious factual or legal issues and the trial is likely to last around 3 days


The parties will be allowed to challenge the band the claim is allocated to, but there will be penalties if the party is unsuccessful – £150 for fast track, and £300 for intermediate cases.

Uplifts and escape

The Government are also planning to allow uplifts on the costs awarded in certain circumstances. This would include cases where one party has behaved unreasonably (a 50% uplift), where there are additional claimants on the same set of facts (25% per claimant) and a London weighting (12.5%).

Parties will also be allowed to escape the proposed FRC in exceptional circumstances, under the existing process.

The new FRC regimes are being implemented with a view to increasing the certainty around costs in these proceedings, as well as ensuring costs remain proportional to the issues at hand. While the impact of such changes remains to be seen, the Government have indicated it may consider further expansion of FRC regimes in future.

About this article

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

About this article

Read, listen and watch our latest insights

  • 22 February 2024
  • Employment

Time to take the heat off menopausal women

On 22 February 2024, the EHRC released guidance and resources for employers designed to help employers understand their legal obligations in relation to supporting workers experiencing menopausal symptoms.

  • 22 February 2024
  • Employment

Talking Employment Law: What to do if you’re at risk of redundancy

In this podcast, Harry Berryman and Rebecca Dowle, members of the employment team, will talk through the steps that need to be taken for a redundancy to be fair and the range of criteria that can be used when determining which employees will be made redundant.

  • 21 February 2024
  • Immigration

FAQs Partner Visa UK

Discover the UK Spouse Visa: eligibility, finances, relationship criteria, and the latest updates in 2024 for a successful application.

  • 19 February 2024
  • Privacy and Data Protection

The role of Data Protection Officers in ensuring compliance

How many of us receive marketing calls for products and services we did not sign up for?

  • 12 February 2024
  • Employment

The World of Work in 2024- What Can HR Expect?

In many senses, 2024 is unlikely to be a year with radical ruptures from those that have gone before it. The significance of 2024 though, is that it is likely to build upon those megatrends impacting the world of work, which have been emerging for some time now and are only likely to strengthen as we move on in time.

  • 09 February 2024
  • Privacy and Data Protection

Are we suffering from cookie fatigue?

An over-indulgence in Easter treats might not be the only cookie fatigue that individuals will suffer this year according to the Information Commissioners Office (ICO).