Guideline Hourly Rates Updated: Practical Implications for Retainers and Costs Management

Solicitors’ guideline hourly rates for civil costs have been updated with effect from 1 January 2026, with the revised figures now published on GOV.UK. The updated rates reflect inflationary adjustments and continue to provide an important benchmark for summary assessment, costs budgeting and inter-party negotiations.

In central London, Grade A fee-earners can now expect to receive £579 per hour, representing an increase of 2.3%. The guideline rates for other London grades are £393 for Grade B, £305 for Grade C and £210 for Grade D.

Reviewing Existing Retainers and Cost Schedules

For firms with ongoing matters, this is an important moment to review existing client retainers and associated cost information. Retainers should be updated where appropriate to reflect the revised guideline rates, and cost schedules should be clearly split to distinguish work undertaken before and after any retainer changes. This approach will help preserve transparency, manage client expectations and reduce the scope for dispute when bills are rendered, or costs are assessed.

Implications for Live Cases and Costs Management

The revised rates may also have wider implications for live cases. For matters subject to costs management, firms should consider whether existing budgets remain realistic, whether a variation may be justified, and how the updated rates may affect negotiations or settlement strategy. While guideline rates are not determinative, they remain a persuasive reference point and are likely to be relied upon by both parties.

Client Communication and Proportionality

Clear client communication remains key. Clients should be informed not only of any retainer changes but also of the potential impact on overall costs exposure, particularly in long-running matters. Firms should also continue to consider delegation and proportionality carefully, ensuring that the level of fee-earner used can be justified on assessment notwithstanding the uplift in guideline figures.

Further Information

The updated guideline hourly rates and the full publication update history are available on GOV.UK here.

by Christopher Veal

Probationary Tenant