Simplified cost budgeting

Costs budgets play a vital part in helping to manage legal costs for our clients.  In practice, preparing them is a complex exercise which takes experience and knowledge to complete accurately and strategically.   

In 2013 cost budgeting rules changed, introducing Precedent H forms.  However, since then further consultation has taken place on how those documents are being utilised. The results were that improvements were necessary and the process needed simplification for the clients.   

In April 2025 we will see a simplified cost budgeting pilot being introduced. The relevance of this will not be lost on civil litigators and family practitioners (who deal with co-habitation disputes) who have been using the Precedent H forms for some time now.

The pilot will bring to the fold new cost budgeting forms (known as precedent Z: simplified cost budget and precedent RZ: simplified cost budget discussion report – the latter to be used in place of the precedent R).

From the new practice directions (PD 51ZG1 and PD 51ZG2), the court retains discretion for cost budgeting directions including whether any matter with a budget of over £1 million should use the new precedent. Previously the first page of the precedent H was used for disputes with a value of less than £50,000.

The new precedent Z cuts out the in-depth analysis which was previously needed when completing a full precedent H. No doubt this will save time, and therefore legal costs, on both sides of the argument.  Crucially, it will also save the court time in assessing costs making the process more proportionate for the clients.

For further information please get in touch.