No Win No Fee Solicitors Explained: What You Pay and When
No win no fee agreements allow people to pursue legal claims without paying solicitor fees upfront. Understanding how these arrangements work can help when deciding whether to instruct a solicitor.
No win no fee arrangements can make legal representation accessible for personal injury claims, but the agreements involve legal and financial considerations that may be difficult to navigate alone. A solicitor can explain the terms of the conditional fee agreement, assess the strength of the claim, handle negotiations with insurers, and ensure the claim is presented properly. Most personal injury claims benefit from professional legal support, particularly when the injury is serious or liability is disputed.
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What Is a No Win No Fee Solicitor?
A no win no fee solicitor is a legal professional who agrees to handle a claim without charging fees upfront. If the claim is unsuccessful, the solicitor does not charge for the work carried out. If the claim succeeds, the solicitor takes a fee from the compensation awarded.
The formal term for a no win no fee arrangement is a conditional fee agreement, often abbreviated to CFA. Under a conditional fee agreement, the solicitor shares the financial risk of pursuing the claim with the client. This allows people to access legal representation without needing to pay fees at the start or during the claim.
No win no fee arrangements are most commonly used in personal injury claims, such as road traffic accidents, workplace injuries, and accidents in public places. They may also be available for other types of civil claims, including clinical negligence, employment disputes, and professional negligence cases.
Conditional fee agreements are regulated by law in England and Wales. Solicitors must comply with rules set out by the Solicitors Regulation Authority and must provide clear information about costs, fees, and any potential liabilities before the agreement is signed.
Not all claims are suitable for a no win no fee arrangement. Solicitors will only offer this type of agreement if they believe the claim has a reasonable prospect of success. If the solicitor does not think the claim is likely to succeed, they may decline to take the case on a conditional fee basis.
How Do No Win No Fee Agreements Work?
A conditional fee agreement is a written contract between the solicitor and the client. It sets out the terms on which the solicitor will handle the claim, including what happens if the claim succeeds or fails.
Before accepting a case on a no win no fee basis, the solicitor will assess the merits of the claim. This involves reviewing the evidence, considering whether liability can be established, and evaluating the likely value of any compensation. Only claims that appear to have a reasonable chance of success are typically accepted.
Once the solicitor agrees to take the case, the client signs a conditional fee agreement. This document explains the solicitor's fees, any success fee that will be charged if the claim succeeds, and what costs the client may be responsible for during or after the claim.
Under the agreement, the solicitor will not charge their usual hourly rate or fixed fee during the claim. If the claim is unsuccessful, the client does not pay the solicitor for the work carried out. If the claim succeeds, the solicitor charges their fees plus an additional amount known as a success fee.
The success fee is an uplift on the solicitor's standard costs. It is designed to reflect the risk the solicitor has taken by agreeing to work without payment if the claim fails. In personal injury claims, the success fee is capped by law at 25 per cent of certain types of damages awarded to the client.
The 25 per cent cap applies to general damages for pain, suffering and loss of amenity, and to damages for past financial losses. It does not apply to damages awarded for future care or future financial losses, which remain with the client in full. The cap is inclusive of VAT.
Most conditional fee agreements also involve the purchase of insurance to protect the client from certain financial risks. This insurance is known as After the Event insurance, or ATE insurance, and is usually arranged by the solicitor on the client's behalf.
The success fee and the structure of conditional fee agreements changed in April 2013. Before this date, success fees could be recovered from the losing party. Since April 2013, the success fee must be paid by the client from their compensation if the claim succeeds.
What Happens If Your Claim Succeeds?
If the claim is successful, compensation is awarded or agreed. The total amount received by the client will be the compensation minus any deductions for fees, insurance, and costs.
The solicitor's success fee is deducted from the compensation. In personal injury claims, this fee is capped at 25 per cent of general damages and past financial losses. The cap does not apply to damages for future care or future losses, so these amounts are not reduced by the success fee.
In addition to the success fee, the cost of any After the Event insurance taken out to cover the claim may also be deducted from the compensation. ATE insurance premiums are typically deferred, meaning they are only payable if the claim succeeds. If the claim fails, the premium is usually not charged.
Disbursements are another cost that may affect the final amount received. Disbursements are expenses incurred by the solicitor on the client's behalf during the claim, such as fees for medical reports, expert witness fees, and court fees. In many cases, these costs can be recovered from the opponent if the claim succeeds. If they cannot be recovered, they may be covered by ATE insurance or deducted from the compensation.
The solicitor will provide a breakdown of all deductions before any settlement is accepted. This allows the client to see exactly how much compensation they will receive after fees, insurance, and costs have been taken into account.
The base legal costs, which are the solicitor's standard fees for the work carried out, may be recoverable from the losing party in some cases. This depends on the type of claim and the outcome. In personal injury claims, the court may order the opponent to pay the claimant's reasonable legal costs, although this does not include the success fee or the ATE insurance premium, which remain the client's responsibility.
The success fee is calculated as a percentage of specific heads of damages, not the total compensation. Damages for future care and future financial losses are protected and are not reduced by the success fee in personal injury claims.
What Happens If Your Claim Is Not Successful?
If the claim is unsuccessful, the client does not pay the solicitor's fees. This is the central feature of a no win no fee arrangement. The solicitor absorbs the cost of the work carried out and does not recover payment from the client.
However, a no win no fee agreement does not eliminate all financial risk. Depending on the terms of the agreement and the type of claim, the client may still face certain liabilities if the claim fails.
In most personal injury claims, a costs protection rule known as Qualified One-Way Costs Shifting, or QOCS, applies. This rule means that even if the claim is unsuccessful, the claimant generally does not have to pay the opponent's legal costs. QOCS is designed to protect personal injury claimants from the financial risk of losing.
There are exceptions to QOCS protection. If the claim is found to be fundamentally dishonest, or if the claimant has behaved unreasonably during the proceedings, the protection may be removed and the claimant could be ordered to pay the opponent's costs. These exceptions are relatively rare and apply only in specific circumstances.
Disbursements may still be payable even if the claim fails, unless they are covered by insurance. Disbursements include costs such as medical report fees, expert witness fees, and court fees. If the client has taken out After the Event insurance, these costs are usually covered by the policy. If no insurance is in place, the client may be liable to pay or reimburse the solicitor for these expenses.
If the client decides to withdraw from the claim after the cooling-off period, which is typically 14 days, the conditional fee agreement may allow the solicitor to charge a cancellation or termination fee. The agreement should set out clearly whether such fees apply and how they are calculated.
After the Event insurance protects the client from having to pay the opponent's costs if the claim fails. The insurance also covers the client's own disbursements in most cases. If the claim is unsuccessful, the ATE insurance premium is usually not payable, as most policies are written on a self-insured or deferred basis.
A no win no fee agreement protects the client from paying the solicitor's fees if the claim fails, but it does not remove all financial risk. Disbursements and other costs may still be payable unless covered by insurance or QOCS protection.
How to Find a No Win No Fee Solicitor
Finding a suitable no win no fee solicitor involves checking that the solicitor has the right expertise, is properly regulated, and offers clear and transparent terms.
Most personal injury solicitors offer no win no fee arrangements as standard. When searching for a solicitor, it is worth looking for firms that specialise in the type of claim being pursued, such as road traffic accidents, workplace injuries, or clinical negligence.
Professional accreditation can indicate a higher level of expertise and experience. The Law Society operates accreditation schemes for personal injury and clinical negligence work. Solicitors who hold these accreditations have demonstrated their competence in handling these types of claims. The Association of Personal Injury Lawyers, known as APIL, also operates an accreditation scheme and maintains a directory of specialist solicitors.
All solicitors in England and Wales must be regulated by the Solicitors Regulation Authority. Before instructing a solicitor, it is advisable to check that they are authorised and in good standing. The SRA's website includes a register of regulated firms and individuals.
The initial consultation is an opportunity to discuss the claim and understand the terms being offered. Many personal injury solicitors provide a free initial consultation, during which they will assess the merits of the case and explain how the conditional fee agreement would work.
During this consultation, it is important to ask about the success fee, how it is calculated, and what other costs may be deducted from any compensation. The solicitor should also explain whether After the Event insurance will be required, how much the premium is likely to be, and what the insurance will cover.
The conditional fee agreement must be provided in writing before any work begins. The client should read the agreement carefully and ask questions about anything that is unclear. The agreement should set out the success fee percentage, the types of damages it applies to, what happens if the claim fails, and whether there are any circumstances in which costs could become payable.
Clients should be cautious about claims management companies that contact people unsolicited, offering to handle claims. These companies are not solicitors and often charge referral fees, which can reduce the amount of compensation received. It is generally more cost-effective to instruct a solicitor directly rather than going through a claims management company.
- The success fee percentage and which damages it applies to
- Whether After the Event insurance is required and the likely premium cost
- What disbursements may be incurred and who pays if the claim fails
- Whether there are cancellation or termination fees
- What happens to costs if the claim is partly successful
- How long the cooling-off period lasts
Frequently Asked Questions
Most personal injury claims in England and Wales are handled under conditional fee agreements, but not all solicitors offer no win no fee arrangements for every type of claim. Solicitors will only agree to a conditional fee agreement if they believe the claim has a reasonable prospect of success. Claims with weak evidence, unclear liability, or low value may not be accepted on a no win no fee basis. Small claims under a certain value are also less likely to be handled this way, as the costs involved may not be proportionate to the potential compensation.
Conditional fee agreements can be used for other types of civil claims, including clinical negligence, employment disputes, professional negligence, and some housing disrepair claims. However, they are not available for criminal cases or most family law matters. The availability of a no win no fee arrangement depends on the type of claim and whether the solicitor believes it has reasonable prospects of success. Some areas of law are less commonly funded this way due to the complexity or uncertainty of outcomes.
A conditional fee agreement allows the solicitor to charge a success fee, which is an uplift on their standard costs, if the claim succeeds. A damages-based agreement, sometimes called a contingency fee agreement, works differently. Under a damages-based agreement, the solicitor takes an agreed percentage of the total damages awarded, rather than charging based on their time and costs. Both types of agreement involve the solicitor sharing the risk of the claim, but the way fees are calculated differs. Conditional fee agreements are more commonly used in personal injury claims in England and Wales.
Not always. Some people already have legal expenses insurance as part of their home or motor insurance policy, known as Before the Event insurance. If this cover is in place and suitable for the claim, After the Event insurance may not be needed. However, if there is no existing cover, or if the existing cover does not extend to the type of claim being pursued, the solicitor will usually recommend taking out After the Event insurance to protect against the risk of paying the opponent's costs or disbursements if the claim fails. Whether ATE insurance is required depends on the individual circumstances and the level of financial protection already in place.
The amount deducted depends on the success fee agreed with the solicitor, the cost of any After the Event insurance, and whether any disbursements need to be paid from the compensation. In personal injury claims, the success fee is capped at 25 per cent of general damages for pain, suffering and loss of amenity, and damages for past financial losses. This cap does not apply to damages for future care or future losses, which remain with the client in full. ATE insurance premiums and any unrecovered disbursements may also be deducted. The solicitor should provide a clear breakdown of all deductions before any settlement is accepted, so the client knows exactly how much they will receive.
Clients have the right to change solicitors during a claim, but the conditional fee agreement may set out fees or conditions that apply if this happens. Some agreements allow the original solicitor to charge for work already carried out, while others may allow the client to switch without penalty during the cooling-off period. If the change happens after the cooling-off period, the original solicitor may be entitled to a fee for the work completed up to that point. It is important to read the agreement carefully and understand what costs may apply before deciding to change representation. The new solicitor may also need to review the case and decide whether to accept it on a conditional fee basis.