Remission of fees
A client not funded by the Legal Aid Agency for the proceedings may be eligible for full or partial remission of the fees if their income and capital below certain limits.1For further discussion, see J Phipps and E Wilkinson, ‘Fee remissions’, Adviser 161 If the client is aged 66 or over, a capital threshold of £16,000 applies, irrespective of the fee level. If their capital is worth £16,000 or more, they do not qualify for remission. If they are 65 or under, a sliding scale of fee bands with different capital thresholds applies – eg, for a fee of up to £1,420, the capital threshold is £4,240.
The ‘disposable capital’ of the client’s household is taken into account – ie, the client’s own capital and any capital belonging to their partner, such as savings, investments and second homes, including jointly held capital. Some capital is disregarded – eg, the family home.
In addition to having capital below a certain amount, a client is exempt from paying all or part of a fee if their (and/or their partner’s) gross monthly income (excluding certain benefits, payments and tax credits) is below a certain amount. This figure depends on whether the client’s household includes children. If their gross monthly income is more than the threshold, there is a three-banded taper scheme which means that the more the client’s monthly income exceeds the threshold, the more they have to pay towards their fee.
A client is not eligible for any fee remission if their gross monthly income is more than £4,420 (if single) or £5,130 (if in a couple), plus £425 for each dependent child up to age 13 and £710 for each dependent child aged 14 or over.
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, they get full fee remission, provided their 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 n unexpected event that has seriously affected their ability to pay the fee and that this circumstance is exceptional – eg, they have 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 (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. If someone is getting benefits, the court will contact the DWP 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 the client of the appeal decision within 10 days. There is a further right of appeal to the operational manager, again within 14 days. There is no further appeal.