Fixed Costs Changes from 1 April 2024 and beyond – What You Need to Know

On 1 April 2024, significant updates to Practice Direction 19B came into effect, reshaping fixed costs and deputy remuneration in the Court of Protection for the first time since 2017. These long-awaited changes were designed to reflect the evolving responsibilities and requirements of deputies and legal practitioners supporting Protected Parties (P).

As Court of Protection Costs Specialists, A&M Bacon is here to help you understand how these changes will impact you and how we can support you in adapting your processes, managing costs efficiently, and ensuring compliance.

What’s Changed? – Summary of Key Increases

For Solicitors and Deputies with Authority to Charge at Solicitor Rates:

Understanding the Threshold: Net Assets and Low-Value Estates

The fixed fee regime continues to consider whether P’s net assets are below £20,300. This threshold has increased from £16,000 and can now include the value of property occupied by P, provided a separate application secures the costs against that asset.  However, our advice here is to check the terms of your order, as we understand that the asset level of £16,000 will remain in place if your order specifies this.

• Below £20,300: Deputies are not eligible to elect for a detailed assessment, unless the order authorises this explicitly. Instead, they must use a fixed percentage approach:
  • Professional Deputies: 4.5% of P’s net assets

This change significantly impacts deputies managing more modest estates.

Applications Under Practice Direction 9d Paragraph 4 – New Fixed Fee

A new Category III was introduced for applications by an existing deputy seeking additional powers, such as authority to sell or buy property for P. These now attract a fixed fee of £633 + VAT, streamlining common requests that previously required detailed assessment.

Health & Welfare Deputy Remuneration

Where the court appoints a deputy for Health and Welfare, the annual management fee is now:

• 2.5% of P’s net assets
• Capped at £703 + VAT (previously £555)

Detailed Assessment Still an Option – But With Caveats

Deputies may still opt for a detailed assessment of costs by the Senior Courts Costs Office (SCCO). However:

• It is not available where P’s net assets are below £20,300 (as detailed above)
• Payments on account may be taken up to 75% of the work in progress or the estimate submitted to the OPG

Conveyancing & Tax Returns – Using Your Firm

Following the Re ACC judgment, if a deputy wishes to instruct their firm for conveyancing or tax return work:

• Three quotes must be obtained (including their own)
• A best interests decision must be documented in the deputy’s report
• If costs exceed £2,000 + VAT, court authority must be sought before proceeding

Key Rates for Public Authority Deputies

We thought it may be useful for us to briefly outline local authority deputy rates, in case you are taking over a case from a local authority and there are outstanding costs to be paid and/or agreed:-

Travel is chargeable at a fixed rate of £51 per hour.

What Does This Mean for You? (In Plain English)

These changes matter because they:

• Increase the fixed fees deputies can claim, helping reflect the real time and cost involved in acting as a deputy.

• Provide clarity and consistency about what you can claim and when, reducing reliance on the lengthy assessment process.

• Introduce new requirements for transparency, especially when you or your firm are undertaking additional work, such as conveyancing or tax returns.

• Tighten rules around low-value estates: If P’s net assets are under £20,300, you must use the fixed percentage fee structure unless otherwise authorised.

If you’re a deputy:

You’ll be able to claim higher fees for your work, but you’ll also need to stay on top of new thresholds, timelines, and reporting expectations.

If you’re a solicitor working on these cases:

These updates may simplify billing on many files, but also raise compliance considerations, especially around internal referrals and quoting processes.

If you’re a public authority:

You have defined fixed costs and caps to follow, ensuring more consistent financial planning. However, you will also need to ensure that proper procedures are followed across departments.

Need Help?

We’re here to help. Whether you need assistance with:

• Claiming the correct fixed fees
• Preparing bills for assessment
• Understanding low-value estate rules
• Advising on reporting and quoting processes

Contact A&M Bacon today to ensure you’re fully compliant and making the most of the updated structure.

Call us on 01733 350 880
Email us at mail@aandmbacon.co.uk

We have highlighted the main changes arising from these updated rules; however, do check out the full practice directions here.