The Ministry of Justice (MoJ) today sought to quell fears that Jackson reforms would be applied retrospectively to cases launched before April 2013.

Changes to civil litigation are set to be implemented next year once the Legal Aid, Sentencing and Punishment of Offenders bill has been approved. Campaigners raised alarm at an amendment to LASPO tabled by Lord McNally last week that was interpreted as removing the recoverability of success fees from claimants launching claims in the next year.

The MoJ has now clarified that amendment 135A is aimed solely at bringing collective conditional fee agreements (CCFAs) into line with plans for individual CFAs. A MoJ spokeswoman said cases launched on or before 31 March 2013 would allow claimants to recover success fees from losing defendants. After that date the government’s reforms allow for up to 25% of potential damages payments to cover that expense.

The spokeswoman said: ‘We are committed to reforming the "no win no fee" system so that legal costs for reasonable compensation claims will be more proportionate, and avoidable claims will be deterred from going to court.

‘This amendment brings CCFAs in line with our planned reforms to CFAs. This means that success fees will not be recoverable in either type of case from April 2013 onwards.’

The amendment was initially seized upon by the Association of Costs Lawyers (ACL), which said it appeared to give the reforms, based on the 2010 Jackson report, retrospective effect.

ACL chairman Iain Stark said solicitors would face the dilemma of whether to risk that the case will conclude before April 2013, knowing claimants’ compensation will be up to 25% lower after that date.

He added: ‘Retrospective legislation is rarely a good idea and it is hard to see any justification for this change.

‘Success fees should cease being recoverable for agreements entered into after the commencement date - that is the simple, logical and fair approach.’

The amendment (number 135A) will be debated amongst others on Wednesday during day four of the report stage of the bill in the House of Lords.