The guideline hourly rates for solicitors in England and Wales are set out in the Senior Courts Costs Office (SCCO) assessment guide. These rates apply to all solicitors and are categorised into National 2 (Outer City), National 1 (City Centre), and London (covering the City of London, Inner London, and Outer London).

Solicitor guideline hourly rates serve as a benchmark for legal costs in litigation, providing courts, solicitors, and clients with a reference point for assessing reasonable solicitor fees.

Given that commercial litigation can incur significant costs, it is essential to be informed about funding and insurance options to ensure a cost-effective approach to dispute resolution. At Annecto Legal, we can assist clients in finding funding and insurance coverage to provide peace of mind.

Updated solicitor guideline hourly rates

The Solicitors’ Guideline Hourly Rates (GHR) for 2025 has been updated to reflect inflation and rising legal practice costs. Here are the key updated rates:

• Grade A (Solicitors and legal executives with over 8 years’ experience): Updated 2025 hourly rates have increased ranging from £282 to £566.

• Grade B (Solicitors and legal executives with over 4 years’ experience): The updated 2025 rates now range between £242 and £385, reflecting an increase from previous figures.

• Grade C (Other solicitors or legal executives and fee earners of equivalent experience): This rate has also increased, ranging from £196 to £299.

• Grade D (Trainee solicitors, paralegals, and other fee earners): Updated 2025 rates have increased ranging from £139 to £205.

Choosing the right solicitor

Selecting the right solicitor is crucial when considering the Solicitors’ Guideline Hourly Rates, as it can significantly impact legal costs, case strategy, and overall efficiency. It is also imperative to select a solicitor with the relevant specialisation for your case to ensure that they can provide the best legal advice for a favourable outcome.

You should opt for a solicitor with the experience and expertise to deal with your case in the most efficient and cost-effective manner. Furthermore, considering how your solicitor will be perceived by the opposing party is essential.

Moreover, you might want to evaluate your solicitor’s willingness to work on a risk-sharing basis and their experience in dealing with legal funders and insurers. These factors can significantly impact the trajectory and success of your case.

Seeking guidance from specialist commercial solicitors as soon as possible can assist in assessing your eligibility to file a claim and to ensure that the claim is made within the specified limitation period.

Funding a claim

The commercial litigation process can lead to high levels of legal costs. Fortunately, there are funding and insurance options available to assist when conducting litigation in a cost-effective manner. These methods include:

No win, no fee agreements

No win, no fee is a type of billing model used by solicitors in the UK, where the client will not have to pay the solicitor if the case is lost. This type of billing model is also known as a “conditional fee agreement” or CFA. Damages based agreements are also a type of no win, no fee agreement. Under a CFA the solicitor will typically charge the client a success fee if the case is won. This success fee is calculated by reference to hours worked, agreed upon in advance and is capped by the law. With a DBA the client pays over a percentage share of the damages recovered to the legal team, so the fees are referenced to the amount recovered rather than the amount of time spent on the claim.

No win, no fee agreements will often require parties to take out an “after the event” (ATE) insurance policy, which will cover the client against any costs incurred by the other side in case the case is lost.

Third party funding

One funding method that is commonly used for the commercial litigation process is third party funding. Third party funding acts as a form of non-recourse financing for litigation. Third party litigation providers take on the financial risk of litigation so that clients can pursue a claim without having to worry about the legal fees associated with it.

In return for taking the risk, the litigation funder will typically seek a share of the proceeds in the region of a fifth to a third of any damages recovered. This means that you keep up to 80% of the reward, having taken none of the risk. If the claim is unsuccessful, the funder will lose their investment.

Damages based agreement 

A damages based agreement (DBA), also known as a contingency fee agreement, is a type of arrangement made between a client and a solicitor in which the solicitor agrees to fund their case and share the risk of litigation. In return, the solicitor will be paid a percentage sum of the damages recovered as long as the client’s case is successful.

DBAs provide that, instead of being paid on a conventional hourly rate, the solicitor’s legal fees are only payable in the event that the case is successful. Therefore, these types of agreements allow clients the opportunity to pursue a case without having to worry about the solicitors’ fees associated with it. In some circumstances, however, fees for Counsel and other disbursements may still be payable by the client.

ATE insurance

After the event (ATE) legal expenses insurance is taken out after the event that has led to a dispute has taken place. ATE insurance can protect you from paying your opponent’s legal costs, should your claim not be successful.

However, ATE insurance is not free, and it is important to remember that if your case is successful, you may have to use some of your reward to pay the cost of the insurance premium, which will be included in the terms and conditions.

The use of third-party litigation funding, CFAs and ATE insurance can sound complicated, but they are simply risk management tools and when used correctly, they can make all the difference to a commercial litigation case.

How can Annecto legal assist?

In commercial litigation, getting the right advice early without spending an excessive amount on legal fees is the best way to save money and protect your position.

Annecto Legal helps clients realise the value of their commercial disputes. We work closely with litigation funders, insurers and lawyers that seek alternatives to the traditional hourly rate funding model.

If you have been involved in a dispute, get in touch with an expert member of our team to find out which litigation cover is the right litigation funding option for you to reduce your commercial litigation costs.