The limit on small claims in the county court is to be doubled to £10,000 as part of government measures to speed up civil litigation. Justice secretary Kenneth Clarke today set out plans to divert up to 80,000 more cases to a small claims mediation process that can be carried out over the telephone.

The limit on small claims may also be raised further to £15,000 subject to evaluation. A single county court system will be introduced and all claims will be handled electronically at centralised business centres, then allocated across neighbouring courts according to demand.

The Ministry of Justice also wants to free up the High Court to deal only with complex cases.

The level below which non-personal injury claims cannot be heard in the High Court will be raised from £25,000 to £100,000. Equity cases will only be taken to the High Court where the property is valued at £350,000 or more, up from the current level of £30,000.

The MoJ has also confirmed the extension of the web-based portal scheme, which will now apply to employer and public liability personal injury cases and road traffic accident cases worth up to £25,000.

Clarke said: ‘Without effective civil justice, businesses couldn’t trade, individuals couldn’t enforce their rights, and government couldn’t fulfil its duties.

‘But individuals and businesses tell me that the civil justice system at the moment can sometimes be intimidating and that they don’t know if using the system will be worth the time, expense and hassle of going to court.

‘I want to make the system as easy and transparent as possible. I want people to be able to resolve their disputes cheaply and simply through the courts’ very successful mediation service, and I want judges freed up to make quick and effective judgments based on the facts of a case, without unnecessary legal complication.

‘These changes will produce a service that helps people to resolve their disputes effectively and in the simplest and quickest way possible so they can get on with their lives and businesses.’

Iain Stark, chairman of the Association of Costs Lawyers, said: 'The government’s plan to increase the financial limit of the RTA PI scheme to £25,000 may mean the extension will incorporate psychological injuries to be considered at this level. The portal scheme was designed for low value RTA claims.

'There appears to be nothing in the government’s response about the potential increased costs relating to this. It is effectively asking solicitors to undertake the same work at £25,000 as they would have for £10,000 - quite simply, it can’t be done by true professionals.'

The reforms are in response to the government’s consultation on solving disputes in the county courts, which had originally been due out in October.