What Are the Guideline Hourly Rates?

Guideline hourly rates (GHR) are the figures used by courts when assessing costs in civil litigation. They act as a starting point for both summary assessment – typically carried out by a judge at the end of a hearing – and detailed assessments conducted by a costs judge or costs officer, often at the Senior Courts Costs Office.

The rates are not a cap. They are guideline figures, and the court retains discretion to award more or less depending on the circumstances. But in practice, they carry significant weight. A receiving party claiming rates well above the guidelines will need to justify that departure, and paying parties will routinely rely on the GHR as the benchmark in points of dispute.

The January 2026 Uplift

With effect from 1 January 2026, the guideline hourly rates increased across all grades of fee earner and all location bands. The uplift of 2.28% was calculated using the Service Producer Price Index (SPPI) – the methodology endorsed by the Master of the Rolls, Sir Geoffrey Vos, and the Civil Justice Council for applying annual inflationary adjustments to the GHR.

This follows the same SPPI-based approach used for the 2025 rates and reflects the continuing commitment to keeping guideline figures aligned with the actual cost of delivering legal services.

The 2026 guideline hourly rates now stand as follows across the main grades:

• Grade A (solicitors and legal executives with over 8 years’ experience): up to £514 per hour in London; £282 in national locations
• Grade B (solicitors and legal executives with over 4 years’ experience): up to £348 per hour in London; £232 nationally
• Grade C (other solicitors and legal executives): up to £270 per hour in London; £185 nationally
• Grade D (paralegals and other fee earners): up to £166 per hour in London; £127 nationally

The top rate for complex commercial work in London remains separately identifiable from the standard Grade A figure, and costs lawyers should ensure they are applying the correct rate for complex commercial litigation when preparing bills and budgets.

What This Means for Bills of Costs

Any bill of costs covering work carried out from 1 January 2026 onwards should reflect the updated 2026 guideline hourly rates. Where a bill spans both 2025 and 2026, costs lawyers will need to apply the correct rates to the relevant periods – a straightforward but important step that paying parties will scrutinise at detailed assessments.

Bills of costs drafted without reference to the current GHR risk are an unnecessary challenge at assessment and can give paying parties a legitimate basis for objection in points of dispute.

Impact on Costs Budgets and Precedent H

For cases where costs budgeting applies, the January 2026 uplift has a direct bearing on Precedent H preparation. Future phases of a costs budget should be calculated using the 2026 rates, and solicitors reviewing or updating existing budgets should consider whether a budget variation application under CPR 3.15A is warranted where the rate change has a material effect on projected costs.

When assessing costs budgets, the court will use the GHR as a starting point for hourly rate scrutiny – making accurate and up-to-date figures essential from the outset.

Should Solicitors Review Their Retainers and CFAs?

The GHR uplift is also a prompt to review existing client retainers and conditional fee agreements. Where a retainer sets out an hourly rate that has not been reviewed recently, solicitors should consider whether that rate remains commercially appropriate in light of the 2026 figures.

This is particularly relevant for firms handling cases under CFAs, where the success fee calculation may be linked to base rates. An outdated base rate could affect both the firm’s recovery and its ability to justify charges at any future assessment of costs.

Key Takeaways

• Guideline hourly rates increased by 2.28% with effect from 1 January 2026
• The uplift was calculated using the SPPI methodology, endorsed by Sir Geoffrey Vos and the Civil Justice Council
• Updated rates apply to all grades of fee earner across all location bands
• Bills of costs covering work from January 2026 must reflect the new figures
• Precedent H budgets should be reviewed and updated where the rate change has a material impact
• Solicitors should use the uplift as a prompt to review retainers and CFAs

Frequently Asked Questions

What are the guideline hourly rates for 2026?

The 2026 guideline hourly rates took effect on 1 January 2026 following a 2.28% uplift calculated using the Service Producer Price Index (SPPI). The top Grade A rate in London is now £514 per hour, with Grade D paralegals and other fee earners at £166 per hour in London and £127 in national locations.

How are the guideline hourly rates calculated?

Since the Civil Justice Council and the Master of the Rolls endorsed the SPPI methodology, annual adjustments to the GHR have been tied to the Service Producer Price Index – a measure of inflation in the legal services sector. This replaced the previous ad hoc review process and provides a more consistent basis for annual uplifts.

Are guideline hourly rates a cap on what solicitors can charge?

No. The GHR are guideline figures and a starting point for the court when assessing costs. A receiving party can seek rates above the guidelines, but will need to justify the departure – for example, by reference to the complexity of the case, the expertise required, or the specialist nature of the work.

Do the 2026 rates apply to summary assessment?

Yes. The updated guideline hourly rates apply to both summary assessment and detailed assessment. Judges conducting summary assessment at the conclusion of hearings will use the 2026 figures as their starting point from 1 January 2026.

Should solicitors update their costs budgets following the January 2026 uplift?

Where a Precedent H budget was prepared using 2025 rates and future phases have not yet been incurred, solicitors should consider whether the rate change justifies a budget variation application under CPR 3.15A. If the difference is material, updating the budget protects the firm’s ability to recover costs at the correct rate.

Speak to Greener Costs Today

Keeping on top of annual GHR changes, ensuring your bills of costs reflect the correct rates, and reviewing existing retainers and budgets takes time, and getting it wrong can cost your client real money at assessment.

Greener Costs works with solicitors and litigation teams across England and Wales, providing specialist support with bills of costs, Precedent H budgets, and detailed assessment proceedings. If you have questions about how the 2026 guideline hourly rates affect your current matters, we are happy to help.

Call us today on 01204 263047 or email info@greenercosts.co.uk to speak with one of our specialist costs lawyers.