On April 1st 2013, there was a huge shake-up of the personal injury claiming system that has left almost all victims facing up to 25% of their compensation being taken by their solicitor for a claim from 1st April onwards. The government decided that lawyers should no longer be able to recover all of their fees from the other side, meaning that lawyers now need to charge clients for certain fees.
The reason why I mentioned 25% is because that is the cap that the government has placed on the charges – i.e. lawyers can’t charge anymore than 25% of a person’s compensation to cover these now unrecoverable fees. The 25% charge must be inclusive of VAT and can only be from damages for personal injury and past financial losses and be net of DWP CRU deductions.
In addition that 25% relates only to the success fee. There is no restriction on the amount they can charge in respect of basic charges. According to our research so far, most law firms have settled at simply charging the flat rate of 25%.
But we here at The Injury Lawyers dare to be different! As we always have done!
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