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Civil Proceedings: Legal Costs

Asked by Bambos CharalambousLabourMinistry of JusticeTabled Answered 16 January 2026UIN 104209

The question

To ask the Secretary of State for Justice, whether his Department plans to introduce additional safeguards to ensure that third-party litigation funding agreements do not expose consumers to unfair financial outcomes.

Answered by Sarah Sackman

We intend to legislate to introduce proportionate regulation of litigation funding agreements when parliamentary time allows. The new regulatory framework will aim to enhance claimant protection, transparency, and the effectiveness of the litigation funding market.

The Government recognises the critical role third-party litigation funding plays in access to justice. That is why we are committed to ensuring it works fairly for all. We will outline next steps in due course.

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