Civil Proceedings: Legal Costs
The question
To ask the Secretary of State for Justice, what assessment he has made of the potential implications for his policies of the Civil Justice Council report entitled Review of Litigation Funding - Final Report.
Answered by Sarah Sackman
The Government recognises the critical role third-party litigation funding plays in access to justice and is committed to ensuring it works fairly for all. That is why we intend to introduce legislation to enact the two primary recommendations of the Civil Justice Council’s review when parliamentary time allows. Once this work has been completed, my officials will consider the remaining recommendations in more detail.
New legislation will mitigate the effects of the PACCAR judgment by clarifying that Litigation Funding Agreements are not Damages Based Agreements, with prospective effect. Furthermore, the Government intends to introduce proportionate regulation of Litigation Funding Agreements.
Further details can be read in the Written Ministerial Statement issued on 17 December 2025: https://questions-statements.parliament.uk/written-statements/detail/2025-12-17/hcws1192.
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