Introduction
Towards the end of 2023 Master of the Rolls Sir Geoffrey Vos made good on his intention of increasing Guideline Hourly Rates by the rate of inflation.
2024 Guideline Hourly Rates
The effect of that increase looks like this:
| Grade | Fee Earner | London 1 | London 2 | London 3 | National 1 | National 2 |
| A | Solicitors and Legal Executives with over 8 years’ experience | £546 (£512) | £398 (£373) | £301 (£282) | £278 (£261) | £272 (£255) |
| B | Solicitors and Legal Executives with over 4 years’ experience | £371 (£348) | £308 (£289) | £247 (£232) | £233 (£218) | £233 (£218) |
| C | Other Solicitors or Legal Executives and fee earners of equivalent experience | £288 (£270) | £260 (£244) | £197 (£185) | £190 (£178) | £189 (£177) |
| D | Trainee Solicitors, paralegals and other fee earners | £198 (£186) | £148 (£139) | £138 (£129) | £134 (£126) | £134 (£126) |
- The figures in brackets are the 2021 Guideline Hourly Rates
The rate of inflation has been taken from the Service Producers Price Index for the period Q1 2022 – Q1 2023. The increase amounts 6.6% to 6.90% (the increase has not been applied uniformly to individual rates, even allowing for rounding).
The question, we as Cost Lawyers, are asked a lot is ‘are we entitled to recover the new Guideline Hourly Rates?’ The short answer: Maybe! It really does depend on whether the retainer you have with your Client allows for the increased rates.
It should be stressed that the increase in Guideline Hourly Rates is not automatic, and parties will be tapered by the indemnity principle. Therefore, if the retainer restricts a Practitioner to the old Guideline Hourly Rates, then these will be the relevant rates recovered in the Bill of Costs.
This is why it is important for practitioners to review any existing retainers and if appropriate alter hourly rates for new matters and to notify the Client if it is considered reasonable to update the same. For those already operating above Guideline Hourly Rates then consideration may be given to whether those rates also need to be reviewed. For example, if the current retainer rates are 20% above the previous Guideline Hourly Rates, then it may be appropriate to consider increasing the rates to reflect the same margin as against the increased Guideline Hourly Rates.
In principle, the new Guideline Hourly Rates see the recoverable rates and solicitor-own-client rates increase. These rates, however, remain general approximations and the starting point to what could be allowed on assessment and each case should be viewed on its own merits, including due reference given to the provisions within CPR 44.3(5) and 44.4(3). This means that in appropriate circumstances the Court will allow a claim for an hourly rate exceeding Guideline Hourly Rates.
Conclusion
In summary, providing you have a valid retainer which allows for the increased Guideline Hourly Rates, or your Client has been notified in writing of any increase in rates, then it would be acceptable to claim the new Hourly Rates within your Bill of Costs.
If you have any questions or would like to discuss the above further, please contact the author, Samantha-Jayne Wilson here.
