The impact that will be caused by the (proposed) increase in court fees.

In short, there will be minimal impact. The only winner is the government.

Why will there be little impact?

The wealthy will be unaffected by the sums of money that will be involved (it’s chickenfeed to them). The poor shall qualify for qualify for fee exemptions, so they will not share the pain.

Those neither rich or poor will be affected. But they do not make up the bulk of litigants.

HMCTS has not been coy about their reason for increasing the fees. They want to raise fee income.

What’s the problem?

The MOJ has omitted to mention that they have attached much excitement to the figures released from the employment tribunals.The government discovered that huge numbers of ET1 drafters decided not to use the employment tribunal when they introduced relatively expensive issue and final hearing fees.

This was great because the government is a huge employer facing large numbers of claims. The reduction was in their favour.

Increased court fees, in the eyes if the government, produce a deterrent towards litigation for the lower quartile of society. They know that fewer claims will save government costs. Furthermore they are alive to the rich being able to pay their way through increased court fees. It’s all about saving money. I discussed this with a DDJ who observed that their salaries and pensions have been increasing at glacial pace, so the money is not going to MOJ staff.

What will happen in reality?

The rich will continue unaffected by the change, as will the poor.

Firms on CFA’s will pay the increased court fees and essentially “sub” those in the middle (you know, those actually affected by this), so long as their case has reasonable prospects of success.

Some people will find they cannot afford it, but I imagine this category will not replicate the figures seen from the employment tribunal.

 

Over and out.

Legal Orange.