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Civil Proceedings: Legal Costs

Asked by Sir Julian SmithConservativeMinistry of JusticeTabled Answered 19 January 2026UIN 101745

The question

To ask the Secretary of State for Justice, when he intends to bring forward legislation regarding litigation funding agreements.

Answered by Sarah Sackman

We intend to introduce legislation to mitigate the effect of the PACCAR judgment when parliamentary time allows. The new legislation will clarify that Litigation Funding Agreements are not Damages Based Agreements and introduce proportionate regulation of Litigation Funding Agreements. 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. We will outline next steps in due course.

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