1. What Is a No Win No Fee Agreement?
A no win no fee agreement, also called a Conditional Fee Agreement (CFA), means you don’t pay your solicitor’s legal fees unless your claim is successful. It allows access to justice without upfront costs, especially in personal injury and accident claims.
If your case is unsuccessful, you pay nothing to your solicitor. If your case is successful, you pay a success fee, which is deducted from your compensation.
2. What Do You Pay If You Win?
If your claim succeeds, you’ll usually pay:
- A success fee (up to 25% of your compensation)
- Any legal costs not recoverable from the other party
- A portion of any disbursements (e.g., expert fees, medical reports), if not covered by insurance
- ATE (After the Event) insurance premium, if taken out to protect you from other side’s costs
Your solicitor must provide a clear breakdown of these costs in advance.
3. What Is the Success Fee?
The success fee is a percentage of your compensation—typically capped at 25% of the final amount awarded for general damages and past losses. It is agreed upon in your contract with the solicitor.
Example:
If you win £20,000 and the success fee is 25%, your solicitor will deduct £5,000. You receive £15,000.
Note: Future losses (like ongoing care costs) are usually not subject to the success fee deduction.
4. What About Disbursements and Extra Costs?
Disbursements are third-party costs incurred to support your claim, such as:
- Medical assessments
- Expert reports
- Court fees
- Travel or document fees
In many cases, these are covered by ATE insurance. If not, you may be asked to pay these from your compensation, but your solicitor will explain this clearly beforehand.
5. What Is ATE Insurance and Why Might You Need It?
After the Event (ATE) insurance protects you from having to pay the other side’s legal costs if your case loses. It’s usually arranged by your solicitor and only payable if you win—the premium is deducted from your compensation.
This protects you from financial risk and is common in no win no fee cases.
6. Will I Still Get a Good Payout After Deductions?
Yes, most claimants receive a significant portion of their compensation. Solicitors are legally required to keep deductions reasonable and transparent. On average, you keep around 70%–75% of your awarded settlement after all no win no fee costs are applied.
7. Always Review the Client Agreement Carefully
Before signing anything:
- Ask about success fee percentage
- Request a full list of potential costs and deductions
- Confirm whether ATE insurance is included and how much it costs
- Understand what’s covered and what’s not
Your solicitor is legally obligated to explain all fees clearly and transparently.
Frequently Asked Questions
1. How much will I pay if I win my case on a no win no fee basis?
Usually up to 25% of your compensation plus possible disbursements and insurance premiums.
2. Can the success fee be more than 25%?
No. For personal injury claims, the maximum success fee is capped at 25% under UK law.
3. What if I don’t take out ATE insurance?
You risk paying certain costs out of pocket if your case fails. Most solicitors strongly recommend ATE cover.
4. Do I pay anything if I lose the case?
No. If your case fails under a valid no win no fee agreement, you won’t pay your solicitor or the other party’s legal fees.
5. Are no win no fee agreements legally binding?
Yes. Your solicitor must give you a written agreement explaining all terms, costs, and your rights.
6. Can I negotiate the success fee?
Sometimes. Especially in higher-value claims, some solicitors may agree to reduce the percentage.
Conclusion
Understanding no win no fee costs if you win helps you make confident, informed choices when pursuing a legal claim. While some deductions apply, you won’t face any surprise bills or hidden fees. Speak with a reputable solicitor, read the fine print, and ensure the majority of your compensation goes where it belongs—to you.
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