The Government has published its formal response to the Justice Committee’s July 2025 report on the operation of the County Court. The Committee’s report described a “dysfunctional” system plagued by delays, a deteriorating court estate, and under-delivery of HMCTS’s Reform Programme. While the Government acknowledges these challenges, its response emphasises recent progress and rejects calls for a full “root and branch” review.
Government Response – Key Points
- Performance improving but pressure remains
The Government highlights “promising progress” in reducing case backlogs: fast, intermediate and multi-track claims now take an average of 72.4 weeks to reach trial (down from 79 weeks a year ago), with small claims taking 49.2 weeks (down from 50.5 weeks). However, these figures remain far higher than pre-2015 averages. - Focus on practical reforms rather than full review
The Government rejected the Committee’s call for a root-and-branch review, arguing that improvements are already being delivered through targeted investment, digitisation, and the increasing use of mediation. - Investment in court estate and digital systems
Projects are underway in Taunton, Barnet and Norwich, alongside renewed investment in digital platforms such as Online Civil Money Claims (OCMC) and the Damages Claims Portal (DCP). The Government points to efficiency gains from these systems: claims issued through the reformed digital services are progressing three times faster to standard directions orders compared with legacy systems. - Civil Auto File Share (CAFS)
A new digital document management tool, CAFS, is being introduced to digitise paper files, reduce manual processing, and speed up case handling. Integration with call handling systems is also reducing average waiting times from 40 minutes to 13 minutes. - Remote hearings and AI
HMCTS are developing a Remote Participation Strategy to expand the use of virtual hearings where appropriate. The Government also signals that AI may play a future role in supporting litigants-in-person.
Mandatory Mediation – Next Steps
The Government accepted the Committee’s recommendation to evaluate the ongoing mandatory small claims mediation pilot (Practice Direction 51ZE), which automatically refers most defended money claims under £10,000 to HMCTS’s Small Claims Mediation Service.
- The pilot runs until May 2026, after which it will be formally reviewed by the Ministry of Justice (MoJ) and the Civil Procedure Rule Committee.
- The Government states that lessons from this evaluation will inform decisions on whether to extend mandatory mediation to other claim types.
This confirms that further expansion of mediation is firmly on the policy agenda, though the pace of change will depend on evidence from the pilot and available HMCTS capacity.
Following our previous roundtable on this topic with the MoJ and engagement with them, this year we are working toward arranging another roundtable to discuss expansion of mediation further.
Digitisation and Reform – Direction of Travel
The Government has accepted all key recommendations relating to the future design of digital reforms:
- Future systems must be co-designed with users, including practitioners, and fully tested before rollout.
- The MoJ will also review descoped work from the original Reform Programme, recognising that without continued investment the system remains “incomplete and inefficient”.
- HMCTS will focus on integration and interoperability – particularly improving the alignment between civil, family and tribunal platforms.
While these commitments are positive, government has not announced any new funding streams. Progress will therefore depend on resource prioritisation within a constrained HMCTS budget. Notably, the expansion of the Damages Claims Portal remains paused due to funding limitations.
In Summary
The Government’s response signals a steady – but cautious – commitment to improvement.
- The court backlog remains a critical issue, with no quick fix in sight.
- Mediation will continue to expand and evolve, with the outcome of the 2026 pilot review pivotal.
- Digital reform remains a long-term ambition rather than a near-term transformation.
- Government’s rejection of a full root and branch review of the county court service is disappointing.
Keoghs will continue to engage with the Ministry of Justice and HMCTS on the development of both mediation policy and civil reform initiatives and will continue to keep clients informed.
