Litigation Funding

Civil Justice Council review of litigation funding

Background

The Civil Justice Council established this review in April 2024, at the request of the then-Lord Chancellor.

The CJC’s function – to help make civil justice more accessible, fair, and efficient – is at the heart of our work. This review sets out the current position of litigation funding, including that of third-party funding, and considers access to justice, its effectiveness, and regulatory options. The full terms of reference are set out at the bottom of this page.

Final Report

The CJC’s Litigation Funding Working Party, which is co-chaired by Dr John Sorabji and Mr Justice Simon Picken, published its Final Report on 2 June 2025. Read the report.

Sir Geoffrey Vos, Master of the Rolls, Head of Civil Justice, and Chair of the Civil Justice Council, said: “I welcome the publication of the CJC’s final report on litigation funding and the recommendations made by the Working Party.

“This landmark piece of work epitomises the raison d’être of the CJC: promoting effective access to justice for all. Litigation funding and its impact on access to justice has long been a priority for the Council. This report provides a comprehensive and balanced package of reforms that will ensure that third party funding continues to support access to justice. It recommends the introduction of appropriate and proportionate regulation. The recommendations will improve the effectiveness and accessibility of the overall litigation funding landscape.

“I am grateful to Mr Justice Simon Picken, Dr John Sorabji, and the entire Working Party for their rigorous approach. Their work has been informed by extensive consultation and engagement across the sector. I am also grateful to the many interested parties who responded so constructively to the consultation.

“I believe that the recommendations in this report, if adopted, will form the foundation for a more transparent, fair and effective litigation funding framework in England and Wales. I encourage all stakeholders to examine them carefully.”

Interim Report and Consultation

The Working Party published an interim report and consultation on 31 October 2024.

Sir Geoffrey Vos, Master of the Rolls, Head of Civil Justice and Chair of the CJC, said: “I welcome the publication of the CJC’s interim report and consultation on litigation funding. Litigation funding plays an important role in ensuring access to justice. I am grateful to co-chairs Dr John Sorabji and Mr Justice Simon Picken, and their working group for this report. I encourage all interested parties to read the report and respond to the consultation, which will run until Friday 31 January 2025. I look forward to the publication of the Working Group’s final report in summer 2025.

“It is a busy and exciting time for the CJC, which is also conducting a review of the Solicitors Act 1974, through a working group chaired by Mr Justice Adam Johnson. The CJC understands that there will be areas of overlap between the work of that group and the Litigation Funding Group. It will create valuable consistency and coherence for the Solicitors Act Working Group to be able to take account of the responses to this Consultation by the Litigation Funding Group as they take forward their work in the new year.”

The Working Party held a four-month public consultation, which closed on Monday 3 March 2025 at 11.59pm.

The full list of consultation questions and cover sheet are now available.

You can also access the responses to the consultation, where respondents gave permission for them to be published. As part of the consultation process, the Working Party held a seminar on 26 February 2025 at Pembroke College, Oxford. Mr Justice Simon Picken, co-Chair of the Working Party on Litigation Funding, delivered the opening address. His introductory remarks are also now available.

Working Group (reporting to the full Council)

Mr Justice Simon Picken (CJC member) – co-Chair
Dr John Sorabji (CJC member) – co-Chair
Mrs Justice Sara Cockerill
Prof. Chris Hodges – Regulatory Horizons Council
Lucy Castledine – Financial Conduct Authority
Nick Bacon KC

Consultation Group

A wider consultation group has also been convened to directly inform the work of the review and to provide a larger forum for discussion in support of the working group.

Membership of the consultation group is as follows:

Alistair Kinley (Clyde & Co.)
Andrew Higgins (Civil Justice Council member)
Dr Mark Friston (The Bar Council)
Helen Brannigan (Ministry of Justice)
Harriet Gamper (Solicitors Regulation Authority)
Jamie Molloy (Ignite Speciality Risk)
Jenny Morrissey (The Law Society)
Julian Chamberlayne (Stewarts)
Kenny Henderson (Fair Civil Justice)
Lucy Anderson, Consumers’ Association (Which?)
Neil Purslow (International Legal Finance Association)
Prof. Neil Rickman (University of Surrey)
Nicola Critchley (Civil Justice Council member)
Prof. Rachael Mulheron (Queen Mary University)
Ray Koh (Lloyd’s Market Association)
Rhea Gupta (Class Representatives Network)
Síona Molony (Law Reform Commission of Ireland) – observer only.
Stephen Wisking (Herbert Smith Freehills)
Suganya Suriyakumaran (Legal Services Board)
Susan Dunn (Association of Litigation Funders)
Tom Steindler (Exton Advisors)

Terms of Reference

The CJC will look to provide an interim report by summer 2024, and a full report by summer 2025.

The Review will be based on the CJC’s function to make civil justice more accessible, fair, and efficient.

The reports will be published.

The reports will provide advice to the Lord Chancellor and, where considered appropriate by the CJC, will make recommendations for change.

The interim report will facilitate opportunity for wider engagement with the CJC, and this review, either through consultation, provision of evidence, or otherwise.

The scope of the review at its outset is as follows (but may be subject to necessary variation):

To set out the current position of litigation funding and third party funding (TPF)

TPF is currently subject to self-regulation. The review will consider:

The background to TPF’s development in England and Wales, with particular reference to the development of the current self-regulatory approach and the effect of the Jackson Costs Review (2009);
The current position concerning self-regulation;
Approaches to the regulation of TPF in other jurisdictions;
How TPF is located within the broader context of funding options.

To consider access to justice, effectiveness, regulatory options

This work will explore whether the current arrangements for TPF deliver effective access to justice and identify possible alternatives and limitations.

To make recommendations

Set out clear recommendations for reform. This will include consideration of:

As to whether and how and, if required, by whom, TPF should be regulated.
As to whether and, if so, to what extent a funder’s return on any TPF agreement should be subject to a cap;
How TPF should be best deployed relative to other sources of funding, including but not limited to; legal expenses insurance, and crowd funding;
As to the role that rules of court, and the court itself, may play in controlling the conduct of litigation supported by TPF, or similar funding arrangements, including whether and, if so, what provision needs to be made for the protection of claimants whose litigation is funded; and the interaction between pre-action and post-commencement funding of disputes;
The relationship between TPF and litigation costs;
Duties concerning the provision of TPF, including potential conflicts of interest between funders, legal representatives and funded litigants;
As to whether funding encourages specific litigation behaviour such as collective action.