CPR 45 explained: fixed costs, fixed recoverable costs and when you can escape them

Most civil costs are assessed: the receiving party proves what was spent and the court decides what is reasonable and proportionate. Part 45 takes a different approach. Where it applies, the amount recoverable from the opponent is fixed by a table, regardless of the time actually spent. The aim is predictability and lower satellite litigation, so both sides know their exposure before they start.

The October 2023 reforms rewrote Part 45 substantially. Fixed recoverable costs were extended from low-value personal injury claims to most claims allocated to the fast track and to a new intermediate track for many claims valued up to £100,000. The figures themselves sit in the tables in Practice Direction 45, which were uprated with effect from 2024, so practitioners must always check the version in force for the relevant date.

Part 45 also contains long-standing fixed amounts that apply regardless of track. These include fixed commencement costs for money claims where judgment is entered in default or on admission, and fixed enforcement costs for steps such as charging orders, attachment of earnings and third party debt orders. The amounts depend on the value of the claim and the step taken.

These modest figures are often what a creditor can add to a judgment debt. A common mistake is to assume that the full solicitor’s fee for issuing a debt claim can be recovered from the debtor; in many simple cases only the fixed figure plus the court fee is recoverable, and the balance is a matter between solicitor and client under the retainer.

For fast track claims, generally those valued up to £25,000 with a trial of no more than a day, Part 45 assigns the claim to one of four complexity bands. Band 1 includes road traffic accident claims not covered by the whiplash portal and defended debt claims; band 4 captures more complex claims such as some professional negligence, housing disrepair (subject to transitional provisions) and complex personal injury claims. The recoverable figure increases with the band and the stage reached, from pre-issue settlement through to trial.

The tables usually combine a fixed sum with a percentage of damages. Trial advocacy fees are fixed separately, and some disbursements are recoverable in addition. Because the figures are cumulative by stage, the moment a claim settles can make a real difference to recoverable costs. Our Fixed Recoverable Costs guide and calculator set out the 2024 figures in more detail.

The intermediate track generally applies to claims valued over £25,000 and up to £100,000 that can be tried in three days or less with limited expert evidence, subject to exclusions such as clinical negligence (other than where liability and causation are admitted) and certain claims against the police or for abuse. Again there are four complexity bands, and the court assigns the band at allocation.

Intermediate track costs follow fifteen stages in the relevant table, covering pre-issue work, statements of case, disclosure, witness statements, expert reports, pre-trial review, trial and beyond. Because the figures are lower than many solicitors would ordinarily charge for this value of work, budgeting the case internally and explaining the likely shortfall to the client at the outset is essential.

Fixed recoverable costs do not usually include every disbursement. Court fees, certain expert fees and other reasonably incurred disbursements are often recoverable on top, although some expert fees are capped in the tables. VAT may be added where the receiving party cannot recover it. There are also specific additional amounts, for example for a party who is a child or protected party, and uplifts where a Part 36 offer is beaten under CPR 36.24.

The interaction between Part 36 and fixed costs is a frequent battleground. Where a claimant obtains judgment at least as advantageous as its own offer, the consequences are modified for fixed costs cases, including an additional amount equal to 35% of the difference between the fixed costs at the relevant stages. Practitioners should read the precise wording rather than relying on the ordinary Part 36 consequences.

The rules allow departure in limited cases. A party can apply for more than the fixed amount where there are exceptional circumstances, but if the court then assesses costs at less than 20% above the fixed figure, the applicant risks receiving only the fixed costs and paying the costs of the application. The test is deliberately difficult, and complexity that is already reflected in the band will rarely be enough.

Separately, where a party behaves unreasonably, the court can order an increase or reduction of 50% of the relevant fixed costs. Parties can also seek reallocation to a different band if the original assignment was wrong. Agreements between the parties and the transitional rules on claims where the cause of action accrued before 1 October 2023 must also be checked, because many older claims remain outside the extended regime.