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Civil Justice Council Review of Litigation Funding
29 October 2025
Lead MP
Julian Smith
Skipton and Ripon
Con
Responding Minister
Sarah Sackman
Tags
Economy
Word Count: 3881
Other Contributors: 3
At a Glance
Julian Smith raised concerns about civil justice council review of litigation funding in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should address the issues in the round once the review is concluded and take action now to ensure access to justice and economic growth.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The third-party litigation funding plays an important role in enabling citizens and businesses to bring claims against larger firms. However, the PACCAR judgment has rendered many third-party funding agreements unenforceable, leading to instability and a lack of clarity about contractual operating terms for two years. The industry, businesses, and legal sector await the Government’s response to the Civil Justice Council review.
Jim Shannon
DUP
Strangford
Commemorating the debate and agreeing on the need for a framework allowing reasonable exchange of risk and benefit to consumers, rather than putting the ability to fight for justice beyond their reach.
Luke Akehurst
Lab
North Durham
Highlighting another positive example of litigation funding's role, such as in the Vodafone franchisee case. He agrees that it can play a crucial role in enabling access to justice for those who would otherwise be denied it.
Oliver Ryan
Lab/Co-op
Burnley
The Post Office case highlighted how litigation funding often puts investors before victims, with around 80% of damages going to funders and lawyers instead of claimants. In Burnley, many households were drawn into cavity wall insulation claims by SSB and left in debt when the firm collapsed. There are over 70 litigation funders managing billions of pounds without formal oversight, leaving consumers exposed.
Government Response
Sarah Sackman
The Minister of State, Ministry of Justice
Government Response
I thank Sir Julian Smith for securing the debate on this important subject. Third-party funding is essential for access to justice and has contributed £42 billion to the economy last year. However, the PACCAR case created uncertainty and a risk that funders might pivot away from England and Wales. The Government are considering how to achieve the right regulatory balance to ensure third-party funding works effectively for all. We are taking a detailed and considered approach to the report and its recommendations, ensuring fair access to justice while enabling economic growth. The Government is aware of high expectations regarding their response and will announce their way forward in due course. It is unlikely that any retrospective measures would be introduced given the rule-of-law principle against retrospectivity.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.