How No Win No Fee Works UK | CFA Guide

If you have been injured in an accident that was not your fault, the cost of hiring a solicitor is often the first thing that worries people. This is where a No Win No Fee agreement comes in. It lets you pursue a personal injury claim without paying your solicitor's legal fees up front, and without paying those fees at all if your claim does not succeed. In this guide, the personal injury team at MCR Solicitors explains exactly how No Win No Fee works in England and Wales, what a success fee is, what happens if you lose, and the questions you should ask before you sign anything.

What does No Win No Fee actually mean?

"No Win No Fee" is the everyday name for a Conditional Fee Agreement (CFA). It is a legally recognised way of funding a claim under the Courts and Legal Services Act 1990. The core promise is simple: your solicitor's fees are conditional on the outcome of your case.

If your claim succeeds, your solicitor is paid. Most of their basic costs are usually recovered from the losing party (the defendant or, more often, their insurer), and a further deduction called a success fee is taken from your compensation.
If your claim does not succeed, you do not pay your solicitor's fees for the work they have done under the agreement.

No Win No Fee is most commonly used for personal injury and clinical negligence claims, but similar arrangements can also apply to some other types of civil dispute. This guide focuses on personal injury claims in England and Wales, as the rules differ in Scotland and Northern Ireland.

How a Conditional Fee Agreement works step by step

A CFA is a written contract between you and your solicitor. Before it is signed, a good solicitor will assess your case and explain your funding options. Here is how the process typically runs.

Free initial assessment. Your solicitor reviews what happened, considers whether someone else was legally at fault, and forms a view on your prospects of success. Firms generally only offer a CFA where they believe the claim has reasonable prospects.
You sign the agreement. The CFA sets out the work covered, the solicitor's hourly rates or basis of charging, the success fee percentage, and what happens if you win or lose.
Your solicitor investigates and builds the claim. They gather evidence, obtain medical reports, deal with the other side's insurer and, if necessary, issue court proceedings.
Your claim settles or goes to trial. The vast majority of personal injury claims settle without a final court hearing.
Costs are resolved. If you win, your solicitor recovers their recoverable basic costs from the losing side and deducts the agreed success fee (and any other permitted deductions) from your compensation.

What is a success fee?

A success fee is an additional percentage added to your solicitor's basic charges as a reward for taking the risk of running your case for no guaranteed payment. It is the trade-off at the heart of No Win No Fee: because the solicitor gets nothing if you lose, they charge a bit more when you win.

Two important points explain how success fees affect you today:

The success fee is capped at 100% of your solicitor's basic charges. This is the legal maximum uplift, but it does not mean the firm takes 100% of your compensation.
Since April 2013, the success fee is paid by you, not the losing defendant. Before then, a winning claimant could recover the success fee from the other side. Under the reforms brought in by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO), the success fee is now deducted from the claimant's damages instead.

To protect claimants, there is a separate cap on how much can be taken from your compensation. In personal injury claims, the amount deducted for the success fee is limited to a maximum of 25% of certain parts of your damages (broadly, your compensation for the injury itself and past financial losses, but excluding compensation awarded for future care and future losses). Because this cap and the way it is calculated can change, and because different firms set different success fee levels, always ask your solicitor to confirm in writing the exact percentage that will apply in your case.

What is ATE insurance and do I need it?

Winning is never guaranteed, and if you lose a claim you can be exposed to certain costs, particularly the cost of expert reports and other disbursements (out-of-pocket expenses such as medical records fees and court fees). To protect against this, a No Win No Fee claim is often paired with After the Event (ATE) insurance.

ATE insurance is a policy taken out after your accident that can cover disbursements and, in some situations, the other side's costs if your claim fails. Key things to understand:

The ATE premium is usually only payable if you win, and is often deducted from your compensation.
Since the 2013 reforms, ATE premiums are generally no longer recoverable from the losing defendant, with a limited exception in clinical negligence cases relating to the cost of certain expert reports.
Not every case needs ATE, particularly where costs protection (see below) already applies. Your solicitor should explain whether it is appropriate for you.

What happens if I lose? Costs protection and QOCS

People are often surprised to learn that in most personal injury claims you are protected from paying the other side's legal costs even if you lose. This is because of a rule called Qualified One-Way Costs Shifting (QOCS), which applies to most personal injury and clinical negligence claims.

Under QOCS, a losing claimant normally does not have to pay the defendant's costs. The word "qualified" matters: this protection can be lost in certain circumstances, most importantly where the claim is found to be fundamentally dishonest, where the claim is struck out, or where you fail to beat a defendant's formal settlement offer (a Part 36 offer) in some situations. This is one of the strongest reasons to always be completely honest and accurate with your solicitor.

Combined together, a CFA, QOCS and (where needed) ATE insurance mean that a genuine, honestly presented claim can usually be run with very little financial risk to you.

No Win No Fee versus other funding options

A CFA is the most common form of No Win No Fee, but it is not the only way to fund a claim. It is worth knowing the alternatives so you can compare.

Damages-Based Agreements (DBAs)

A DBA, sometimes called a contingency fee agreement, is another type of No Win No Fee arrangement. Instead of charging hourly rates plus a success fee, the solicitor takes an agreed percentage of your compensation if you win. In personal injury cases the amount the solicitor can take under a DBA is capped by law (including VAT and after accounting for costs recovered from the other side). DBAs are less commonly used than CFAs for injury claims.

Existing legal expenses insurance

You may already have Before the Event (BTE) legal expenses insurance without realising it, often attached to home, motor or bank account policies. This can fund a claim, but you are generally free to choose your own solicitor. Always check your policies before assuming you need No Win No Fee.

Trade union funding

If your injury is work-related and you are a union member, your union may fund legal representation. It is worth checking your entitlement.

Legal aid

Legal aid is no longer available for most personal injury claims. It remains available only in very limited categories, such as some clinical negligence claims involving severe birth-related brain injury. For most accident claims, a CFA is the practical route.

What types of claim can be funded with No Win No Fee?

No Win No Fee is widely used across personal injury work, including:

Road traffic accidents, including as a driver, passenger, cyclist or pedestrian
Accidents at work and employer's liability claims
Slips, trips and falls in public places (public liability)
Clinical and medical negligence
Industrial disease claims, such as those relating to asbestos exposure or noise-induced hearing loss
Serious and catastrophic injury claims

Bear in mind that most personal injury claims are subject to a strict time limit of three years from the date of the accident or the date you became aware your injury was linked to someone's negligence (under the Limitation Act 1980). There are important exceptions, for example for children and for people who lack mental capacity, so you should seek advice as early as possible.

The whiplash reforms and low-value RTA claims

If you were injured in a road traffic accident as a driver or passenger, be aware of the changes introduced by the Civil Liability Act 2018, which came into force in 2021. For many lower-value whiplash-type injuries:

Compensation for the whiplash injury itself is set by a fixed government tariff rather than assessed individually.
The small claims limit for the injury element of certain RTA claims was increased, meaning some claimants are expected to use the official online Official Injury Claim portal, where legal costs are not usually recoverable from the other side in the same way.

These rules are technical and the tariff figures and thresholds are set by the government and can change, so check the current position on gov.uk or, better, speak to a solicitor who can tell you whether your claim falls inside or outside these fixed-cost regimes and how that affects funding.

Questions to ask before you sign a No Win No Fee agreement

A reputable firm will welcome these questions. Before signing, make sure you understand:

What percentage success fee will apply, and what is the maximum that can be deducted from my compensation?
Will I need ATE insurance, how much is the premium, and when is it payable?
Am I protected by QOCS, and in what circumstances could I still have to pay the other side's costs?
What happens to any deductions if my case settles early?
Are there any circumstances in which I would have to pay you even though the claim ends, for example if I stop giving instructions or the agreement is ended?
Do I already have legal expenses insurance or union cover that could fund the claim instead?

Getting clear, written answers to these questions is the best way to avoid surprises later.

Talk to MCR Solicitors about your claim

At MCR Solicitors in Manchester, our personal injury team acts for clients across England and Wales on a No Win No Fee basis where appropriate. We will assess your case honestly, explain your funding options in plain English, and tell you what you can expect to receive and what will be deducted before you commit to anything.

To find out whether you have a claim and how No Win No Fee could work for you, call our team today on 0161 466 1280 for a free, no-obligation initial discussion. There is no pressure, and no cost for that first conversation.

Frequently asked questions about No Win No Fee

Is No Win No Fee really free if I lose?

If your claim does not succeed, you will not pay your solicitor's fees for the work carried out under the Conditional Fee Agreement. In most personal injury cases you are also protected from paying the other side's costs by QOCS, and any disbursements can often be covered by ATE insurance. You should still check the specific terms of your agreement, because protection can be lost in limited situations such as where a claim is found to be fundamentally dishonest.

How much will the solicitor take from my compensation?

The main deduction is the success fee. In personal injury claims the amount taken for the success fee is capped at a maximum of 25% of certain parts of your damages (broadly your injury compensation and past losses, not future losses). There may also be an ATE insurance premium. Your solicitor must tell you the exact figures and percentages in writing before you sign.

What is the difference between a CFA and a success fee?

A Conditional Fee Agreement (CFA) is the whole No Win No Fee contract between you and your solicitor. The success fee is one part of that agreement: it is the extra percentage added to the solicitor's basic charges to reflect the risk of not being paid if you lose.

Do I have to pay anything up front?

With a genuine No Win No Fee agreement you should not have to pay your solicitor's fees up front. Some disbursements may be funded by the firm or covered by insurance during the case. Always confirm at the outset whether you will be asked to pay anything before the claim concludes.

How long do I have to make a personal injury claim?

In most cases you have three years from the date of the accident, or from the date you first realised your injury was linked to someone's negligence, to start a claim. Different rules apply to children and to people who lack mental capacity. Because time limits are strict, it is best to seek advice as soon as possible.

Can I switch solicitors if I already have a No Win No Fee claim?

It is often possible to transfer your claim to a new solicitor, but there may be cost consequences depending on your existing agreement and how far the claim has progressed. If you are unhappy with your current representation, speak to us and we can explain your options before you make any decision.

How Does No Win No Fee Work UK? Complete Guide Explained