What’s New in Legal Costs and Cost Drafting? Key Developments UK Costs Professionals Should Know.

For legal costs professionals in England and Wales, 2025 is shaping up to be another eventful year. Between updates to official guidance, pilots in budgeting procedures, shifts in court fee structures and regulatory conversations around the profession, there’s plenty on the horizon that affects everything from detailed assessments to cost drafting workflows.

Here’s a serious round-up of what’s actually new and noteworthy in the world of legal costs and cost drafting — with insights you can use in practice and conversations with colleagues.

1. SCCO Guide 2025 — Updated Official Guidance

One of the biggest recent publications for costs practitioners is the Senior Courts Costs Office Guide 2025, released in October 2025 by the judiciary. Courts and Tribunals Judiciary

This updated guide is the principal reference for costs lawyers preparing detailed assessments in the Senior Courts Costs Office (SCCO), and it:

• Lists the current complement of Costs Judges and Costs Officers, crucial for planning hearings. Courts and Tribunals Judiciary

• Clarifies procedural expectations for costs assessment and related applications. Courts and Tribunals Judiciary

• Offers practical explanation in plain language — a helpful refresher for those handling detailed assessments or preparing bills for the SCCO. Courts and Tribunals Judiciary

While it doesn’t overhaul existing law, the guide’s clarifications are timely, especially as professionals continue to navigate remote hearings, COP billing and complex detailed assessment cases. Courts and Tribunals Judiciary

Tip: Download the SCCO Guide 2025 from the Judiciary website and review sections most relevant to your practice area — it’s becoming the standard first reference for any detailed assessment strategy.

2. Costing Pilots and Procedural Change on the Way

The Association of Costs Lawyers (ACL) has highlighted several forthcoming developments practitioners should track in 2025, including:

• The start of simplified budgeting pilots from April, covering certain business and property cases and those valued below £1m. New Law Journal

• Continued conversations about reforming the Solicitors Act 1974 costs provisions, which could lead to broader legislative change in due course. New Law Journal

• Ongoing debate around the regulation of unregulated costs draftsmen, driven by case law concerns. New Law Journal

The simplified budgeting pilots are particularly significant — intended to make budgeting proportionate and reduce administrative burden for lower-value matters. New Law Journal

And while a full rewrite of the Solicitors Act isn’t imminent, any changes here could affect costs orders, detailed assessment jurisdiction and how solicitors recover costs across litigation types. New Law Journal

3. Regulatory Spotlight on Costs Professionals

A noteworthy conversation in the profession this year focuses on who should be regulated. In the wake of Kapoor v Johal [2024] EWHC 2853 (SCCO) — a case where a large bill was reduced drastically and the court lamented being unable to sanction an unregulated draftsman — the ACL is urging action on closing regulatory gaps. New Law Journal

Costs lawyers are also predicted to gain judicial roles at county court and lower tribunal levels, similar to CILEX lawyers, although currently this doesn’t extend to the High Court or SCCO. New Law Journal

Both developments — regulatory tightening and potential expanded professional pathways — reflect an increased focus on standards, expertise and accountability for those preparing costs documents.

4. Court and Tribunal Fees Updated

Although not a costs rule change in the strict sense, the Ministry of Justice updated 171 court and tribunal fees from April 2025, with most increasing by inflationary adjustments. GOV.UK

• This includes increases to Court of Protection application fees, among others. GOV.UK

• The changes stem from efforts to align fees with rising operational costs, and while they don’t directly change cost drafting law, they do feed into costing advice and budget planning for litigation teams. GOV.UK

For costs professionals preparing budgets or advising on likely cost outcomes, updated fee structures should be factored into proposals and strategy.

5. Court of Protection Billing Clarified in SCCO Guide

The 2025 edition of the SCCO Guide also includes updated references specific to Court of Protection (COP) costs — a niche but increasingly significant area for professional deputies and costs lawyers. Clarion Legal Costs

Highlights include:

• Clarification on how fixed costs under Practice Direction 19B apply depending on billing period. Clarion Legal Costs

• Emphasis on maintaining current retainers and guideline hourly rates to ensure compliance with the indemnity principle on assessment. Clarion Legal Costs

Although not revolutionary, these clarifications help reduce ambiguity around COP billing practice and reinforce compliance expectations for professional deputies and their advisors. Clarion Legal Costs

6. Case Law and Practical Issues on Costs

Regular case law updates continue to influence cost drafting practice. Analysis of reported decisions — such as those summarised in specialist news feeds like the Kain Knight Costs Case Law Update for November 2025 — remains essential reading. kain-knight.co.uk

Recent summaries cover topics ranging from:

• Points of dispute and successful objections on detailed assessment

• Developments in how Part 36 offers interact with costs outcomes

• Practical interpretations of costs rules in complex litigation contexts kain-knight.co.uk

For costs professionals, staying on top of these developments — beyond headline case names — can materially influence strategy in detailed assessment and budgeting.

7. Broader Context: Redress Scheme Cost Framework

While not a typical costs drafting issue, the Capture Redress Scheme recently published guidance on how legal costs are reimbursed for claimants in the scheme. GOV.UK

Under this framework:

• Legal representatives agreeing to the scheme accept fixed cost structures paid directly by government departments. GOV.UK

• Representatives outside the framework must manage client expectations around potential additional billing and risk. GOVUK

This is particularly relevant for costs professionals advising on billing strategy where clients are part of statutory schemes.

Final Thoughts

For UK costs professionals, 2025 isn’t just more of the same — it brings new guidance, pilots in budgeting procedures, regulatory debate and incremental procedural adjustments that impact both daily practice and strategic planning.

If you want to stay ahead:

• Keep the SCCO Guide 2025 handy and review it before detailed assessments. Courts and Tribunals Judiciary

• Watch for outcomes of simplified budgeting pilots and how they are received operationally. New Law Journal

• Monitor regulatory conversations about professional regulation and costs lawyer roles. New Law Journal

• Update advice templates to reflect updated fee structures and practical case precedents. GOV.UK

Staying informed on these topics will help you provide sharper advice, prepare stronger bills and navigate costs assessment with confidence.