Understanding No Win No Fee: What Will You Actually Pay?

Table of Contents

1. What Is a No Win No Fee Agreement?

A no win no fee agreement, also called a Conditional Fee Agreement (CFA), is a legal arrangement where you only pay your solicitor if your case is successful. It makes legal help accessible by removing the need for upfront payments, especially in personal injury and medical negligence claims.

2. What Percentage Do Solicitors Take for No Win No Fee?

In the UK, the success fee solicitors take is typically:

Capped at 25% of your compensation
This cap applies to general damages (pain, suffering) and past financial losses (e.g., lost wages)
The cap does not usually apply to future losses, such as long-term care or income loss

This means you keep at least 75% of your awarded compensation.

3. Is the 25% Deduction Standard?

Yes, most personal injury firms charge exactly 25%, as allowed by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). However:

Some firms charge less, especially for low-risk cases
You may be able to negotiate the percentage before signing
The percentage must be clearly stated in your agreement

Always review the terms carefully to understand what’s deducted and why.

4. What Does the Success Fee Cover?

The success fee compensates the solicitor for:

Taking on the financial risk of your case
Managing all legal work and negotiations
Representing you in or out of court
Funding initial costs, such as medical reports and investigations

It’s calculated as a percentage of your total compensation, within the 25% cap.

5. Are There Any Other Deductions?

Yes, in addition to the success fee, you may have to pay for:

After the Event (ATE) insurance: Covers costs if your case loses
Disbursements: Expenses like medical assessments, expert reports, and court fees
These are often deducted from your compensation if not recoverable from the other party

Ask your solicitor to provide a full breakdown of all potential deductions upfront.

6. No Win No Fee Cost Example

Let’s say your claim settles at £20,000:

Success fee (25%): £5,000
ATE insurance: £600
Disbursements: £400
You receive: £14,000

Your solicitor must give you a final settlement statement detailing all deductions.

7. Can You Reduce the Solicitor’s Percentage?

Possibly. You can:

Negotiate the percentage before signing
Ask for a lower fee in straightforward or high-value claims
Compare firms and choose one with transparent and fair fee structures

Don’t be afraid to request fee estimates in writing before committing.

8. What Happens If You Lose?

If your claim fails:

You don’t pay the solicitor’s fees
ATE insurance (if arranged) covers the other side’s costs and disbursements
Some firms still charge for non-refundable expenses—check your contract carefully

You should never pay hidden fees under a genuine no win no fee agreement.

9. How to Choose the Right Solicitor

Look for a solicitor who:

Clearly explains all costs and deductions
Offers a genuine no win no fee agreement
Has a strong track record in your claim type
Offers a free consultation
Provides regular updates throughout your case

Always read the client care letter or CFA thoroughly before signing.

10. Key Legal Protections

UK regulations ensure:

Solicitor’s success fee is capped at 25%
All costs and fees must be fully disclosed in writing
You are entitled to keep most of your compensation

The Solicitors Regulation Authority (SRA) enforces these rules to protect clients.

Frequently Asked Questions

1. Can the solicitor take more than 25%?
Not for personal injury claims. The cap is legally fixed. Beware of any firm suggesting otherwise.

2. Do I pay VAT on the success fee?
Sometimes. Ask whether VAT is included in the quoted percentage.

3. Can I switch solicitors mid-case?
Yes, but you may need to settle any outstanding costs before transferring your file.

4. Is the 25% based on the total or just part of the compensation?
It’s applied to general damages and past losses only—not future loss claims.

5. What is ATE insurance, and do I need it?
It protects you from paying costs if your case is unsuccessful. Most no win no fee solicitors include it.

6. Is no win no fee available for all cases?
Most commonly used in personal injury, clinical negligence, and industrial disease claims.

Conclusion

Understanding what percentage solicitors take for no win no fee ensures you’re not caught off guard by deductions. While the success fee is capped at 25%, additional costs may apply—so always ask for a clear cost breakdown. With the right solicitor, you can confidently pursue your claim knowing you’ll keep the majority of your compensation.

Martin taggart