1. Understanding No Win No Fee Agreements
A “No Win, No Fee” agreement, formally called a Conditional Fee Agreement (CFA), means you only pay your solicitor if your case is successful. If you lose, you usually won’t owe legal fees—making this a popular option for personal injury and accident claims in the UK.
2. Typical Percentage Charged by Solicitors
In most cases, no win no fee solicitors take up to 25% of your compensation as their success fee. This percentage is legally capped by UK law under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO).
- Maximum success fee: 25% of your awarded damages.
- This fee covers your solicitor’s time, expertise, and risk of taking the case.
3. What the 25% Success Fee Covers
The deducted amount typically applies only to general damages (for pain and suffering) and past financial losses, not future losses or care costs. It’s a way to balance fair compensation for you and appropriate payment for your solicitor.
Your solicitor uses this percentage to:
- Offset risk for losing cases.
- Cover their work on a contingency basis.
- Fund ongoing operations for future claimants.
4. Are There Any Other Costs?
Although the success fee is capped, some additional costs may apply:
- After the Event (ATE) insurance: Optional, but recommended to cover court or third-party costs if the case is lost.
- Disbursements: These are third-party expenses (e.g., medical reports, expert witnesses) often recovered separately.
- Some firms may initially cover these and deduct later if you win.
Always ensure fee transparency before signing any agreement.
5. Can the Success Fee Be Negotiated?
Yes, in some cases, the success fee percentage can be negotiated depending on:
- The complexity of the case
- The potential settlement amount
- The law firm’s policy
Ask upfront whether the solicitor is open to reducing the percentage if your case is strong or straightforward.
6. What You Should Look For in the Agreement
When reviewing a no win no fee contract, check for:
- The exact success fee percentage.
- Clarification on which damages the fee applies to.
- Details about ATE insurance.
- Any hidden administrative or setup fees.
Reading the fine print helps avoid surprises after the settlement.
7. Example Calculation of a No Win No Fee Payout
Let’s say:
- Your total compensation: £20,000
- Success fee: 25% of general damages (say, £15,000 portion)
You would pay:
25% of £15,000 = £3,750 to your solicitor.
You’d receive:
£16,250 (minus any additional disbursements if applicable)
8. Does It Still Offer Good Value?
Yes. Despite the deduction, using a no win no fee solicitor often results in:
- Higher payouts than self-represented claims
- Professional handling of complex legal procedures
- Reduced stress and hassle
Many people prefer this route because there’s no financial risk if you lose.
9. When Are You Most Likely to Pay the Full 25%?
You’ll most likely pay the full capped percentage if:
- Your case involves considerable legal work or complex liability.
- You agree to the standard terms without negotiation.
- Your claim value is relatively modest.
Always check if the solicitor offers a lower fee for high-value or straightforward cases.
10. Final Thoughts on No Win No Fee Percentages
Understanding what percentage no win no fee solicitors take is crucial when deciding how to proceed with your claim. Although the typical rate is 25%, transparency, communication, and the solicitor’s experience matter just as much. Always read the agreement carefully and don’t hesitate to ask questions before signing.
Frequently Asked Questions
Q1: Is 25% the legal maximum a solicitor can take?
Yes, for personal injury claims in the UK, the success fee is capped at 25% of damages for pain, suffering, and past losses.
Q2: Are there any hidden costs with no win no fee?
Possibly. Some firms may charge for ATE insurance or administrative fees. Always request a full cost breakdown.
Q3: Do solicitors charge if I lose my case?
Usually not. The success fee only applies if you win. ATE insurance often covers any additional costs.
Q4: Can I negotiate a lower success fee?
In some cases, yes—especially if the case is simple or likely to succeed. Ask during your consultation.
Q5: What if my case involves future care costs?
The 25% cap generally doesn’t apply to future damages. Your solicitor should clarify this in your agreement.
Q6: Is it worth using a no win no fee solicitor?
Yes, especially for complex or high-value cases. They improve your chances of winning and securing a fair payout.
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