Civil Proceedings: Legal Costs

Ministry of Justice written question – answered at on 10 February 2026.

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Photo of Andrew Slaughter Andrew Slaughter Chair, Justice Committee, Chair, Justice Committee

To ask the Secretary of State for Justice, if he will take legislative steps to reverse the effects of R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and provide for the changes to apply retrospectively.

Photo of Andrew Slaughter Andrew Slaughter Chair, Justice Committee, Chair, Justice Committee

To ask the Secretary of State for Justice, whether he has set a timeline for publication of legislation to reverse the effects of R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal.

Photo of Sarah Sackman Sarah Sackman The Minister of State, Ministry of Justice

We intend to introduce legislation to clarify that Litigation Funding Agreements (LFAs) are not Damages-Based Agreements when Parliamentary time allows. This will mitigate the effect of the PACCAR judgment and improve access to justice by reassuring funders that LFAs can be used to fund cases. We intend to make this change with prospective effect.

The Government recognises the critical role third-party litigation funding plays in access to justice and is committed to ensuring it works fairly for all. We will outline next steps in due course.

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