What exactly does “No Win No Fee” mean?

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No win no fee is a fair means of providing everyone with access to justice, especially those who can’t afford to pay solicitors’ costs. It means just what it says – if a compensation claim fails, the claimant doesn’t pay anything even though their solicitor will have run up considerable fees during the claims process.

No Win No Fee services are officially known as a conditional fee agreement, which states that your solicitor will only be paid for their services if you win your claim for injury compensation.

A deduction if you win

When a claimant succeeds and wins their compensation claim, a deduction is taken from the settlement. This came about as a result of the government’s Compensation Act 2012 (LASPO Act 2012) that sees winning claimants contributing up to 25% of any settlement value to the cost of their claim. The deduction is formed by the value of the entire claim including the sum provided for a special damages settlement.  A successful claimant may also have to repay the cost of any ATE insurance put in place by their Solicitor.

At Direct2Compensation, our no win no fee process complies fully with the requirements of legal and government legislation. This guarantees that the bulk of your legal costs will be paid for you when you win your claim, and that apart from a possible 25% deduction and the cost of your ATE insurance policy (if your Solicitor has had to put one in place for you) you will receive the rest of any compensation settlement awarded to you. The balance of your legal costs will be payable by the 3rd party.

No costs if you lose

In the event that your no win no fee claim is not successful, you will never be liable for the costs incurred so long as you are not acting fraudulently.

This means that the solicitor’s own costs are lost when a claim fails. The 3rd party defendant may well charge their costs to the claimant’s solicitor, but our solicitors will have ensured that all claimants have obtained an insurance policy that will cover such costs. The insurance policy will cost the claimant nothing if the claim fails, but the premium for the policy may be deducted from the compensation settlement should the claim be won.

The important thing to remember is, that with Direct2Compensation, our claimants are not responsible for any legal fees if their claim fails.

It continues to be very much worthwhile to pursue a no win no fee claim for personal injury compensation and the independent specialist Solicitors who pursue our clients claims, will do their utmost to minimise any deductions from compensation settlements. Our staff and the partner law firms with whom we will place your claim for compensation uphold the ethos of working in our client’s best interest at all times. We are proud to be part of the personal injury claims industry, and to help our clients claim compensation they deserve in an efficient and ethical way.

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Questions & Answers

  1. Rachel

    Can u send me a questionnaire to see if I am eligible for a claim, please?

  2. Anna

    Hi, I’ve broke my foot a week ago at work as my manager tried to lift a keg and it landed on my foot. I’ve given my sick note yesterday but I have been asked by my manager if I left the house during the time I’ve been off. Can I get in trouble if I did?

    • Ian Morris

      Whether or not you leave the house whilst you are signed off work by a GP is irrelevant to your employer. In your case, your GP has taken the view that on the basis of injury recovery, you should not be at work for a week. That does not mean that you must spend a week confined within your own home. You are simply supposed to be resting – that does not mean that you cannot go to the shops, watch a movie or even go for a meal or drink.

      You would appear to have a valid claim for workplace injury compensation after the damage done to your foot when your manager dropped the keg on to you. You may wish to pursue a claim if you do not get paid for the period of time that you are unable to work as one of the benefits of claiming compensation after suffering an injury is that alongside a financial settlement for your injury, you can also recover any lost income and incurred expenses too. To start your claim, please call us on 01225430285 or use the ‘start a claim’ page of our website.

  3. Tara Smyth

    I have a solicitor working for me on a no win no fee basis against my previous employer.
    the company have accepted liability but don’t want the case to go to a tribunal. the original injury to feeling was £16,500. but because they came back with a bit of defence, we had to drop the injury to feeling. the first offer was £3000 but I said no and went back with £12,000, but the solicitor said no go for £9000 and if they offer £5000 we should accept it. I said I wasn’t prepared to drop that low and he said if it continues like this then I will not be able to carry on with this case on the no win no fee basis. this case hasn’t been going on for long, and we have an acas conciliator involved. Should he be saying this to me?

    • Ian Morris

      It is hard to advise as to whether or not your Solicitor is advising you correctly but we would always assume that the Solicitor is acting correctly and advising you in your best interests. However, you cite a hefty drop in damages and are well within your rights to be unhappy with the lowering of possible damages. However, your Solicitor maybe right and as per the terms of the Conditional Fee Agreement that you would have signed with them, they are able to terminate a No Win No Fee agreement if you ignore their advice.

      I would suggest that you should ask for a different Solicitor within the same firm to review your file – perhaps via the Solicitors complaints policy (which would be published on their website) in order for a fresh view on things.

  4. Lisa Davies

    Can you tell me your fees


    • Ian Morris


      Hi, No Win No Fee compensation with Direct2Compensation is just what it says – No Win – No Fee! Therefore, to answer your question about fees, there are a couple of things to say.

      Firstly, and most importantly, we can state categorically that should any claim made with us fail (i.e, the claim is closed and the 3rd party successfully defends any claim), the claimant WILL PAY NOTHING AT ALL. This is 100% guaranteed – no costs faced by the claimant regardless of the amount of fees incurred. Of course, it goes without saying that if a claimant were found to have been acting fraudulently, that they would be liable for fees – and face criminal proceedings.

      Secondly, No Win No Fee does mean that there is a fee to be paid if you succeed with a claim. At Direct2Compensation we are authorised to practice in this regulated industry. Indeed, we are regulated by the Financial Conduct Authority, our authorisation number is 830395. Details can be found on the Financial Conduct Authority financial services register. We comply fully with the requirements of the regulatory framework in which we operate and adhere to the requirements of the LASPO Act 2012. This act obliges ALL successful claimants to contribute to the costs of their claim. As such, any successful claimant will have to contribute UP TO 25% of any settlement award made to them towards the costs of the claim. Any such deduction is taken BEFORE the settlement is made to the claimant so the claimant NEVER has to provide money in order to obtain their settlement.

      To explain the deduction/cost further, I can say as follows:

      The 25% deduction is taken from the full settlement value and includes all past losses (including any out of pocket expenses incurred, general damages for the actual injury/pain/suffering, loss of earnings and care costs etc). When calculating the deduction, our solicitors act as fairly as possible and normally exclude treatment/rehab costs and leave those 100% intact. However, each case is dealt with individually.

      The 25% deduction DOES NOT include any future losses – for example, settlement values awarded for future loss of earnings, disability on the labour market, future costs for care, future treatment or rehabilitation costs etc. To confirm, the 25% deduction can only apply to past losses.

      Rather confusingly, the ‘success’ fee is not always a full 25% as there is a double cap by way of a safeguard. The deduction is capped at 100% of the value of the actual costs a solicitor incurs in running the successful claim, or 25% of the compensation – whichever is the lower of the two figures. As an example, if the claim settled for damages of £20,000 and a Solicitor had undertaken work to the value of £3000, then the most that they could deduct from the compensation would be £3000, whilst a full 25% deduction would be £5000. In this case, the £3000 would be the lower of the two figures.

      Alternatively, if a claim settled for damages of £20,000 and a Solicitor had done work to the value of £15,000, the the most that they could deduct would be 25% – £5000.

      I hope that this helps. Please feel free to call us on 01225430285 to discuss your case and we’ll be happy to help you. It is also worth noting that Solicitors will review the merits of each case individually and may be willing to negotiate on the % of the deduction on more straightforward or higher value cases.

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