Guideline Hourly Rates to Increase from 1 January 2024

The Civil Justice Council Costs Review, published in May 2023, advised that the 2021 Guideline Hourly Rates should be increased. On 1 December, it was confirmed that the Master of the Rolls had accepted the CJC’s recommendations.

The 2021 Guideline Hourly Rates will be increased as of 1 January 2024 in accordance with the Services Producer Price Index (SPPI). The Guideline Hourly Rates are thereafter to be increased annually in line with the SPPI.

The rates from 1 January 2024 will be as follows (those in brackets reflect the current rates):

The Costs landscape has undergone a significant change this year, with the expansion of Fixed Recoverable Costs in cases worth up to £100,000, which for many receiving parties, will remove their ability to recover costs at hourly rates and result in a shortfall. The recent announcement of increased hourly rates next year and beyond will therefore have less of an impact than it otherwise may have had on the industry, but will come as welcome news for receiving parties and a slight relief against changes which will inevitably result in lower profitably.

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