Remission of fees
A client who is not being funded by the Legal Aid Agency for the proceedings may be eligible for full or partial remission of the fees if the amount of her/his capital and her/his income are below certain limits.1For further discussion, see J Phipps and E Wilkinson, ‘Fee Remissions’, Adviser 161 If the client is aged 61 or over, a capital threshold of £16,000 applies, irrespective of the level of fee. If her/his capital is worth £16,000 or more, s/he does not qualify for remission. If s/he is under 61, a sliding scale of fee bands with different capital thresholds applies – eg, for a fee of up to £1,000, the capital threshold is £3,000.
The ’disposable capital’ of the client’s household is taken into account – ie, the client’s own capital and any capital belonging to her/his partner, such as savings, investments and second homes, including jointly held capital. Some capital is disregarded – eg, the family home and the household’s furniture and effects.
In addition to having capital below a certain amount, a client is exempt from paying all or part of a fee if her/his (and/or her/his partner’s) gross monthly income (excluding certain benefits and payments and tax credits) is below a certain amount. This figure depends on whether the client’s household includes children. If her/his gross monthly income is more than the threshold, s/he must pay £5 towards the fee for every £10 excess income above the threshold.
If the client’s gross monthly income is more than £5,170 (if single) or £5,345 (if a member of a couple) plus £265 for each dependent child, s/he is not eligible for any fee remission.
If the client is getting universal credit (with gross annual earnings of less than £6,000), income support, income-based jobseeker’s allowance, income-related employment and support allowance or the guarantee credit of pension credit, s/he gets full fee remission, provided the amount of her/his capital is low enough.
In addition, the court has discretion to allow full or partial remission of a fee if there are exceptional circumstances. Guidance suggests that the client may not have to pay a fee if there has been an unexpected event that has seriously affected her/his ability to pay the fee and that this circumstance is exceptional – eg, s/he has received a letter or notice threatening action due to non-payment of bills. The decision is made by the court officer and is a final decision which cannot be appealed.
An application for fee remission should be made on Form EX160 or completed online at gov.uk/get-help-with-court-fees (this generates a reference number which must be included on the court application). HMCTS publishes an accompanying leaflet (EX160A) (also available from the website). Clients do not need to provide proof of their income unless the court requests it. In the case of someone getting benefits, the court will contact the Department for Work and Pensions if necessary. If the application for remission is not made at the same time as the court action is taken, any fee can be refunded retrospectively, provided an application is made within three months of the fee being paid. This time limit can be extended if there is a good reason.
A refusal of full or partial remission can be appealed to the court delivery manager in writing within 14 days. The letter should state why the client believes the decision is wrong and can include further information and evidence. The court manager should notify her/him of the decision on the appeal within 10 days. There is a further right of appeal to the operational manager, again within 14 days. There is no further appeal.