“No win, no fee” sounds simple: you do not pay your solicitor if the claim fails. In most UK personal injury cases, the arrangement is a conditional fee agreement, often shortened to a CFA agreement. It lets a solicitor take on a case without asking the injured person to fund legal work upfront, while setting out what will be paid if compensation is recovered.
The key point is that “no fee” does not always mean “no possible cost.” Your agreement should explain charges, third-party expenses, insurance, cancellation terms and deductions from compensation. Understanding those details before signing helps prevent surprises later.
What a no win no fee agreement covers
A conditional fee agreement is a contract between you and your solicitor. It normally says the solicitor will not charge their basic legal fees if the agreed definition of success is not achieved. If the claim succeeds, the solicitor usually seeks recoverable costs from the defendant or the defendant’s insurer and may also charge you a success fee.
The success fee reflects the risk the firm took by working without guaranteed payment. In a personal injury claim, it is capped at 25% of damages awarded for pain, suffering and loss of amenity and past financial losses. Compensation for future care and future financial loss is excluded from the cap calculation.
Twenty-five per cent is a maximum, not an automatic deduction in every case. A firm may charge less. Your paperwork should clearly state the percentage, whether VAT is included and which parts of the compensation are used in the calculation. Ask for an example in pounds, not only a percentage.
How personal injury solicitors get paid when you win
Personal injury solicitor fees can come from more than one source. The defendant may pay recoverable legal costs, while the claimant pays the agreed success fee and any unrecovered items identified in the contract. The solicitor then provides the remaining compensation with a statement showing each deduction.
A practical example
Imagine a claim settles for £20,000, including £12,000 for pain, suffering and past losses and £8,000 for future treatment and lost earnings. If the agreed success fee is 25%, the cap applies to the £12,000 portion rather than the protected future-loss portion. The maximum success fee under that simplified calculation would be £3,000. The final figure depends on the agreement and settlement breakdown.
Before accepting an offer, ask for a written calculation showing the gross compensation, every proposed deduction and the net amount you will receive. This is more useful than being told only that the case has settled for a headline figure.
What happens if the claim loses?
Under a typical CFA, you do not pay the solicitor’s basic fees if the case is unsuccessful, provided you have complied with the agreement. Other risks may remain. Medical reports, court fees and specialist evidence are examples of disbursements, meaning expenses paid to third parties while the claim is pursued.
Your solicitor should explain who pays those expenses if the claim fails. Many firms arrange after-the-event insurance to cover certain disbursements and possible opponent costs. The premium may be deferred and deducted from compensation if you win. Policies vary, so check the premium, exclusions and cancellation consequences rather than assuming every risk is covered.
Personal injury claimants also benefit from qualified one-way costs shifting, known as QOCS. Broadly, it limits when a defendant can enforce a costs order against an unsuccessful claimant. It is not absolute protection. Exceptions can apply to cases struck out for abuse of process or claims found to be fundamentally dishonest. Your solicitor should explain how the rules apply to your circumstances.
Why solicitors do not accept every case
A no win no fee arrangement transfers significant risk to the law firm. The solicitor may spend months obtaining medical evidence, calculating losses and negotiating with insurers without knowing whether the work will be paid. Firms therefore assess the evidence, prospects of success, limitation deadline, likely compensation and whether the defendant can meet an award.
A refusal does not necessarily mean there is no valid claim. The firm may consider the case too uncertain or uneconomic for its funding model. Another regulated solicitor may reach a different view. Also check whether legal expenses insurance attached to an existing policy could fund advice.
Questions to ask before signing
Begin with the figure that matters most: how much are you likely to receive after every deduction? Ask what counts as a win, what percentage applies, whether VAT is included, how disbursements are funded, whether insurance will be purchased and what the premium may be.
Also ask what happens if you stop the claim, reject reasonable advice, fail to cooperate or move to another firm. Some agreements allow charges in those circumstances. The SRA expects firms to explain charges and risks clearly, including termination fees. Read the client care letter and CFA agreement carefully, and keep copies of everything you sign.
Useful related topics include the personal injury claim process, how compensation is calculated and legal costs and expenses. They provide context from initial assessment to settlement.
Common misunderstandings
The solicitor always takes 25%
No. Twenty-five per cent is the legal cap for the relevant portion of damages in a personal injury CFA, not a compulsory rate. The agreed deduction may be lower.
Losing can never cost me anything
Not necessarily. The solicitor’s basic fee may be waived, but disbursements, opponent costs in exceptional situations, insurance exclusions or contractual charges may still matter.
A CFA and a damages-based agreement are identical
They are different funding models. A CFA links payment to legal costs plus an agreed success fee. A damages-based agreement generally calculates payment as a percentage of the money recovered, subject to separate rules.
Frequently asked questions
Do I pay anything upfront?
Many firms do not require upfront payment for their legal work, but arrangements vary. Ask specifically about medical reports, court fees, insurance premiums and other expenses.
Can a solicitor take more than 25% of my compensation?
For a personal injury CFA, the success fee is capped at 25% of damages for pain, suffering and past financial loss, with future care and future financial loss excluded. Other properly disclosed deductions may be separate, so request a full breakdown.
Will the other side pay all my legal costs if I win?
Not always. The defendant may pay recoverable costs, but there can be a difference between the solicitor’s total charges and the amount recovered. Your agreement should explain whether any shortfall can be deducted from compensation.
Can I cancel the agreement?
Usually you can end the relationship, but cancellation may trigger charges for work already completed, especially after a cooling-off period. Check the termination clause and ask for the consequences in writing before cancelling.
Making the agreement work for you
A no win no fee claim can make specialist representation accessible without upfront legal fees, but the protection comes from the written terms, not the slogan. Ask for a worked example of all deductions and confirm what happens in both a successful and unsuccessful outcome. A reputable solicitor should explain the numbers in plain English before you commit. This is general information rather than advice on an individual case.