What Is A Success Fee?
If you are making a compensation claim, such as for a personal injury or harm caused by medical negligence, you may be considering using a solicitor who offers No Win No Fee terms. When claiming on this basis, you may be asked to enter into a Conditional Fee Agreement, which is the formal arrangement used for No Win No Fee claims. Under this agreement, a success fee may be payable if your claim is successful. A success fee is a legally capped percentage of your compensation that is deducted by the solicitor for successfully handling your claim.
At Compensation Calculator UK, the solicitors on our panel could help you on a No Win No Fee basis. You can use our legal glossary to learn about the terms used throughout our site. For further information on how to claim compensation or to discuss your case:
- Call us on 0800 408 7826.
- Contact us via our form.
- Tell us what happened to you below.
Jump To A Section
- What Percentage Will Be Taken As A Success Fee?
- Is A Success Fee The Same As Legal Fees?
- Why Do Solicitors Charge A Success Fee?
- Will Solicitors Always Charge 25%?
- Is This The Same For CFA And Damage Based Agreements?
- Will A Success Fee Be Deducted From My Compensation?
- Am I Liable For A Fee If The Claim Is Unsuccessful?
- Get Help From Compensation Calculator UK
- Learn More
What Percentage Will Be Taken As A Success Fee?
In England and Wales, success fees in most personal injury claims are capped at 25% of certain parts of the compensation, which usually includes damages for pain, suffering and loss of amenity, and past financial losses. The cap does not apply to future financial losses, which cannot be used to calculate the success fee.
You will not need to pay any success fee out of pocket as this fee will be deducted by the solicitor if and when you are awarded compensation. An advisor could help to further explain the differences between Conditional and Damages Based Agreements, helping you to understand different funding options.
Is A Success Fee The Same As Legal Fees?
Success fees are not the same as a solicitor’s standard fees. A success fee is an additional uplift that may be charged if a claim is successful under a No Win No Fee arrangement, whereas standard fees relate to the work carried out by the solicitor on the case. The success fee is only payable if the claim is won and is usually deducted from the compensation awarded.
Success fees are a conditional charge which is only applied if you win your case. Legal fees are a broader category, covering costs such as,
- Administrative work on your claim.
- Disbursements to pay for services such as,
- Independent medical assessments.
- Expert witnesses.
- Court fees (where applicable).
- Obtaining records, such as medical records.
Legal fees and success fees are treated differently, but in most cases both are only payable if a claim is successful. Where a claim is won, the defendant will usually be responsible for paying the solicitor’s standard fees, while any agreed success fee is paid by the claimant and deducted from the compensation awarded. If the claim is not successful and the solicitor is acting under a No Win No Fee agreement, the claimant will not be expected to pay the solicitor’s fees. In some cases, a solicitor may recommend taking out an insurance policy, such as After the Event insurance, which can provide additional protection against certain costs if the claim does not succeed.
Why Do Solicitors Charge A Success Fee?
Before the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LAPSO) was introduced, solicitors were able to recover these fees from the defendant. However, following the LAPSO’s introduction, this is no longer permissible. Instead, solicitors can deduct a pre-agreed percentage of the claimants compensation.
The type of No Win No Fee agreement put in place could impact the percentage deducted. You can get in touch with us to learn more about how to fund personal injury claims.
Will Solicitors Always Charge 25%?
No, solicitors will not always charge a 25% success fee. It is important to note that this is the legal maximum percentage which may be deducted under a No Win No Fee agreement. Whilst many law firms and solicitors will charge the legal maximum allowed, they may also choose to offer claimants lower success fees in certain instances.
Solicitors may elect to charge a lower success fee where the risk of a claim failing is lower, in cases involving minors, or as a way to offer a more competitive service.
Please contact our team to find out how we could help if injured in an accident at work, on the road, or elsewhere.
Is This The Same For CFA And Damage Based Agreements?
A Conditional Fee Agreement is not the same as a Damages Based Agreement. Under a Conditional Fee Agreement, a solicitor charges their usual fees for the work carried out, but those fees are only payable if the claim is successful. If the claim is won, the solicitor may also charge a success fee, which is an additional amount agreed in advance. Under a Damages Based Agreement, if the claim is successful, the solicitor charges an agreed percentage of the damages recovered, regardless of the solicitor’s underlying costs or the amount of work carried out.
Depending on the type of personal injury or medical negligence claim you are making, you may be offered a DBA or CFA. Claimants may choose a CFA when they want to benefit from a capped and predictable success fee.
Get in touch with our team for an assessment of what your personal injury claim may be worth.
Will A Success Fee Be Deducted From My Compensation?
Yes, if your claim is successful a pre-agreed success fee will be deducted from your compensation. Your solicitor will automatically deduct this fee before passing your compensation on to you. This means you do not need to worry about making any out-of-pocket payments, ensuring a simplified process.
An advisor can explain more about how success fees are calculated and deducted.
Am I Liable For A Fee If The Claim Is Unsuccessful?
In most cases, no. If your solicitor is acting under a No Win No Fee agreement and your claim is unsuccessful, you will not be required to pay the solicitor’s fees. This is because payment for the solicitor’s work is usually only due if the claim succeeds. In some situations, a solicitor may recommend additional protection, such as an insurance policy, to cover certain costs if the claim does not succeed, and the terms of any such cover should be explained to you in advance.
Get in touch with our team to learn more about different legal charges claims may incur.
Get Help From Compensation Calculator UK
Whether you were injured in an accident at work, whilst on the road, or in a public space (such as a supermarket) you could get help from Compensation Calculator UK. We work with a specialist panel of solicitors who are experts at helping people to secure compensation in a variety of different circumstances.
Following an assessment with one of our advisors, you could be connected to an expert solicitor who could;
- Carry out a free, no-obligation assessment of your case.
- Connect you to rehabilitation, physiotherapy, or other specialist services.
- Assist in gathering relevant, supporting, evidence.
- Negotiate with the other party to secure you the best possible injury claim settlement.
- Help claimants from across the country.
Contact Our Advisors To Make A Claim
Contact our advisors today to make a claim:
- Call 0800 408 7826.
- Contact us to send details of your case.
- Tell us what happened over our live chat.
Learn More
Learn more in our related legal glossary guides and view further resources below.
- In this resource we outline the Pre-Action Protocols for personal injury claims.
- Here we explain the role of special damages payments.
- Check if you could be eligible to claim an interim payment here.
Further references.
- Get an overview of Statutory Sick Pay in this government resource.
- Information from the NHS on first aid treatment.
- Report a collision on the road to the police.
Please contact our team to find out what success fee may apply to your case.