The 2026 update to the Guideline Hourly Rates is now in effect and will form part of the background to costs recovery, budgeting and negotiation throughout the year. While the revision does not introduce structural change, it does warrant close attention in terms of how it is deployed in assessment and relied upon in support of claimed rates.

This note addresses the scope of the update and its likely practical impact, rather than rehearsing the settled principles that govern the use of published guidance.

Changes to be Observed with the 2026 Revision

The revised figures represent an uplift of around 2.28% from the 2025 figures across all grades and geographic bands. The adjustment broadly reflects inflationary movement and is not intended to recalibrate the perceived value of legal work, alter grade definitions, or expand the circumstances in which higher rates may properly be recovered.

The underlying framework remains unchanged. There is no indication that the update is designed to soften the court’s approach to proportionality or reduce the evidential burden on receiving parties seeking recovery at or above the revised figures.

FAQ: Does the increase justify higher recoverable rates as of right?

No. The revision updates the reference figures only. Courts continue to assess hourly rates by reference to the nature of the work, the complexity of the proceedings, the experience of the fee earner and the proportionality of the overall costs claimed. Alignment with the updated figures may assist in resisting marginal reductions, but it does not of itself establish reasonableness.

Practical Impact on Assessment

In practical terms, the updated figures are likely to continue to be used as an anchoring reference at summary assessment, particularly where limited time is available for detailed scrutiny. The Guideline Hourly rates will be used by the Courts as a starting point for reasonableness and proportionality considerations.

On detailed assessment, the position is the same, more or less. They may assist in framing submissions on reasonable rates but will not displace the need for evidence supporting grade allocation, seniority and the necessity of the work undertaken.

FAQ: Are judges likely to apply the Guideline Hourly Rates for 2026 automatically on detailed assessment?

For work incurred post January 2026, they will be the starting point but receiving party’s will be highlighting to the Court that the new rates represent the current financial landscape and should be applicable whilst paying party’s will be asking for older hourly rates to be the starting point for their applicable years. Obviously, it will be a matter for the Courts to determine if the parties cannot come to some agreement.

Implications for Costs Budgeting, and Negotiation

The revised figures will inevitably feature in costs budgets prepared during 2026, particularly where parties seek to demonstrate that proposed hourly rates fall within an accepted framework. However, budgets that simply adopt the revised figures without narrative justification remain vulnerable to challenge.

Paying parties are likely to continue using the figures as a comparator where higher rates are claimed, or where the dispute does not obviously justify senior fee earner involvement. The updates may also influence negotiations on incurred costs, especially where historic rates are being assessed against current guidance.

Strategic Considerations Arising from the Update

Several points follow from the publication of Guideline Hourly Rates for  2026:

• The increase does not signal any change in recoverability thresholds.
• Proportional remains central, particularly in lower-value or streamlined claims.
• Geographic banding continues to attract scrutiny, especially in cases involving national firms or hybrid working arrangements.
• The revised figures may assist in restoring reductions at the margins, but are unlikely to justify step-changes in claimed rates.

The approval of the update by the master of the rolls, following review work undertaken by the civil justice council, reinforces the continued status of the rates as guidance rather than a tariff.

Closing Observations

The 2026 update reinforces the court’s ongoing emphasis on proportionality, efficiency and appropriate resourcing. While the revised figures provide an updated reference point, they do not alter the expectation that work is carried out at the correct level and with proper regard to cost control.

As such, the guideline hourly rates should be viewed as part of a wider assessment exercise rather than a justification for increased spend. Recoverability will continue to turn on evidence, necessity and proportionality, particularly where delegation, streamlined processes or alternative working methods could reasonably have reduced costs.

If you would like advice on how the Guideline Hourly Rates for 2026 may affect cost budgeting, assessment or negotiation in your cases, our team is available to assist. We regularly advise on the practical application of the guidelines and can support throughout the life of a matter, from budgeting through to detailed assessment.

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Whether you need assistance with budgeting strategy, assessment submissions, detailed assessment hearings or costs negotiation, we are ready to support your firm.