What is no win no fee?

No win no fee is the consumer term for a Conditional Fee Agreement (CFA). Under a CFA, the solicitor charges nothing if you lose the case, and takes a success fee from your compensation if you win. The success fee is capped at 25% of the damages awarded for personal injury claims (excluding future-loss damages) under the Conditional Fee Agreements Order 2013 made under the Courts and Legal Services Act 1990 (as amended by LASPO 2012).

What does no win no fee not cover?

A CFA covers the solicitor's own fees and success fee. It does not automatically cover: the other side's legal costs if you lose (this is what After the Event insurance is for), disbursements like court fees and medical reports (some solicitors fund these, some pass them to the client), and barrister's fees (often handled by a separate CFA with the barrister). Always read the agreement carefully to understand what you would pay if you lose and what is deducted from your award if you win.

Is no win no fee available for divorce or employment cases?

Some employment cases yes (typically discrimination, whistleblowing, or unfair dismissal with a clear merit case worth £15,000+). Divorce, family, and probate matters cannot use CFA in England and Wales because they are excluded categories under the regulations. Personal injury and clinical negligence remain the dominant CFA categories. Some commercial litigation firms also offer CFA on selected disputes.

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No Win No Fee Solicitor Explained

How a Conditional Fee Agreement (CFA) actually works in 2026: the 25% cap on personal injury, what ATE insurance covers, and what you take home on a £20,000 award. Updated May 2026.

What "no win no fee" actually means

"No win no fee" is the marketing term for a Conditional Fee Agreement (CFA). The arrangement is regulated by the Conditional Fee Agreements Order 2013 and the Civil Procedure Rules. The core mechanism:

The solicitor charges nothing if you lose.
If you win, the solicitor takes:
- Their basic fees (calculated at the firm's usual hourly rate × hours worked).
- A "success fee" -- an uplift on the basic fees of up to 100 per cent.
The combined success fee taken from your damages is capped at 25 per cent of the damages awarded for personal injury claims (excluding damages for future loss).

The 25% cap explained

The 25 per cent cap was introduced by section 44 of LASPO 2012, in force from April 2013. It applies to:

General damages (pain, suffering, loss of amenity)
Past special damages (lost earnings to date, past care, past medical expenses)

It does not apply to:

Future loss damages (future lost earnings, future care costs).
Damages awarded in non-personal-injury cases (the cap is personal-injury specific; the success fee in other case types can in principle be higher).

So if your personal injury claim is awarded £20,000 of general damages plus £30,000 of past losses plus £100,000 of future losses, the success fee can take 25% of (£20,000 + £30,000) = £12,500 maximum. The future losses are ring-fenced.

Worked example: £20,000 personal injury claim

Gross compensation awarded	£20,000
Solicitor's basic costs (recovered from defendant under CPR 44)	Paid by defendant
Success fee (25% of damages, max)	-£5,000
ATE insurance premium (deducted from damages)	-£250 to -£500
Your take-home	£14,500 to £14,750

In practice, the solicitor must justify the success fee uplift and many CFAs take less than the 25% cap. For straightforward whiplash claims the success fee is often 10-15% rather than 25%. Always ask for the specific success fee in your CFA.

After the Event (ATE) insurance

A CFA covers your solicitor's costs if you lose, but does not cover the other side's costs if you lose. Under the "loser pays" principle in civil litigation, you would be liable for the defendant's legal costs. After the Event (ATE) insurance is taken out at the start of the case (after the event happened) to cover this risk.

Premium typically £250 to £1,500 for personal injury cases, deducted from damages if you win.
Premium is contingent: if you lose, you pay nothing (the policy pays the defendant on your behalf).
Qualified One Way Costs Shifting (QOCS) under CPR 44.13-17 limits adverse costs to the value of damages recovered in personal injury cases, reducing but not eliminating the need for ATE.

What counts as a "win"?

A "win" under a CFA is usually defined as obtaining any damages or compensation, however small. So a £500 settlement still counts as a win and triggers the success fee. Read the CFA definition carefully. Some firms include:

Any settlement, no matter the amount.
A favourable Part 36 offer beaten at trial.
A judgment in your favour even if no money is awarded (rare).

Red flags in CFA agreements

No specific success fee stated. The CFA should say the exact percentage. If it says "up to 100%" without specifying, push back.
Disbursements charged to client even on win. Some firms keep disbursements off the success fee but pass them to you. Check the disbursement clause.
ATE insurance premium not disclosed. You should be given the premium amount upfront.
Cancellation clauses that bite if you change solicitor. Some CFAs make you liable for the basic fees if you switch firms mid-case. Get this clarified.
Aggressive marketing follow-ups. Reputable firms do not cold-call about an accident. Insurer panel firms in particular have aggressive marketing -- you do not have to use the firm your insurer suggests.