The Ministry of Justice has announced plans to raise up to £42m extra a year by increasing some court fees by 10%. A consultation published on Friday asked for views on generating more income for HM Courts & Tribunals Service by requiring users to pay more.

Fees will increase by 10%, which the government points out is much less than the 17.8% consumer price index rise since the last round of increases in 2021.

‘It is critical that HMCTS continues to receive an adequate stream of income by ensuring fees keep pace with increased costs to HMCTS as a result of changes in the general level of prices, while at the same time minimising the cost to the taxpayer as much as possible,’ said justice minister Mike Freer. ‘[The 10% rise] creates a fair balance between more closely aligning user contributions to growing HMCTS costs and recognising the ongoing financial pressures to households as a result of increases to the cost of living.’

The MoJ states that these increases will raise between an estimated additional £34m to £42m a year.

It is also consulting on proposals to update fees routinely every two years to take account of rising costs. This aligns with the approach taken across other parts of the public sector, it said. 

Court and tribunal fees accounted for £727m of the total £2.3bn HMCTS budget in 2022/23. The rest was funded from general taxation.

Fee increases would come into force next spring, following the establishment of a revised schemes for fees remission late this year.

A full list of the fees in line to increase can be found in the consultation here. It closes on 22 December. 

Reflecting on the proposed increase, Tony Roe, family law partner, arbitrator and mediator at Dexter Montague LLP in Reading, said: 'The government is seeking a 10% hike in court fees whilst managing an increasingly broken system. In the case of divorce, which has been simplified and is online, it is proposed that the application fee will rise to a whopping £652 which cannot be justified. I question HMCTS as to the actual underlying cost and how it is calculated as the consultation is silent on that front.

'The court system with its delays and ‘pulled’ hearings does not offer good value for money to the user.'

 

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