Justice Committee publishes final report on County Court Inquiry

The Justice Committee has published its long-awaited report following its Inquiry into the operation of the County Court. The report is unambiguous in its conclusion: the County Court is a “dysfunctional operation” that fails to deliver civil justice and requires “urgent and comprehensive” reform. This follows sustained concerns from across the sector about chronic delays, inconsistent service levels, and the long-term consequences of a flawed attempt at digital transformation. Keoghs contributed written evidence to the Inquiry and has been closely monitoring developments.

The Committee’s findings and recommendations are highly relevant to insurers and corporates with exposure to high volumes of civil claims – particularly in relation to the court backlog, digitisation, and the direction of travel on mediation policy. A government response is expected in the autumn.

Key Findings and Recommendations

1. Delays and Backlog

• The Committee finds that County Court delays are “unacceptable”, with average time to hearing for small claims now exceeding 50 weeks.
• Delays are attributed to long-standing issues including underfunding, rising caseloads, lack of judicial and administrative resource, and the growing number of litigants-in-person.
• Regional disparities in performance are a significant concern, exacerbated by poor data collection and inadequate local visibility of court operations.

What this means for your organisation:

The slow pace of litigation increases indemnity spend and creates prolonged uncertainty for claimants, policyholders, and businesses alike. Regional variation also creates inconsistency in claims handling strategy. Improved data transparency could assist insurers and corporates in risk forecasting and resourcing.

2. Mandatory Mediation and Dispute Resolution

• The report supports the continued rollout of mediation, including its potential application to a wider range of claim types beyond small claims.
• Mediation is recognised as a viable route to justice that is not beset by court delays.
• The Committee calls for an evaluation of the impact and effectiveness of mandatory mediation as part of any wider County Court review.

What this means for your organisation:

This reinforces the Ministry of Justice’s wider direction of travel on expanding mandatory mediation beyond the small claims track. Clients should consider how mediation strategies may need to evolve in higher-value or more complex claim types. We are continuing to engage with policymakers on the future scope of this reform.

3. Digital Reform and System Failures

• The HMCTS Reform Programme is described as over-ambitious and having ultimately under-delivered, leaving courts operating a confusing mix of paper and digital systems.
• The lack of interoperability between legacy and new systems has led to inefficiencies and duplication, with one claim often requiring interaction with multiple platforms.
• Future digital reforms must be co-designed with users, rigorously tested, and focus on system integration rather than replacing functional platforms.

What this means for your organisation:

Inefficiencies in court systems directly impact case progression, increase litigation costs, and frustrate the efficient resolution of claims. The report supports the direction of travel toward greater digitisation, but in a more measured and user-informed way. Clients reliant on the timely resolution of volume claims will welcome the call for integration and streamlining, particularly the recommendation for a single case management system.

4. Estate and Accessibility

• The physical condition of the County Court estate is “dire”, with examples of serious disrepair, including asbestos and pest infestations.
• Poor conditions impact staff morale, judicial recruitment, and access to justice – particularly for disabled users.
• The Committee calls for transparent reporting of how the £220 million capital budget has been spent and a prioritised programme of accessibility improvements.

What this means for your organisation:

The degraded estate contributes to the broader dysfunction of the system. A lack of adequate facilities delays hearings and affects stakeholder confidence in the justice process – particularly where claims require in-person attendance. Improvements here are necessary to support long-term stability and fairness.

5. Recommendations on Data and Transparency

HMCTS must publish regular, granular data on:

• court-level performance and delays;
• settlement rates and listing practices;
• litigants-in-person and their experience; and
• maintenance and accessibility standards.

What this means for your organisation:

Greater transparency and standardised reporting would support benchmarking and enable clients to anticipate case trajectory and better manage legal spend. It would also support a more evidence-based approach to identifying claims appropriate for mediation or early resolution.

Next Steps

The government is expected to respond to the Committee’s recommendations in the autumn. Of particular note will be whether it agrees to a full-scale review of the County Court system, including the scope of mandatory mediation and digitisation priorities.

We are continuing to monitor developments and will keep clients informed of the government’s position once it is published. In the meantime, if you would like to discuss the implications of the report, or explore how this may affect your claims strategy – particularly in relation to mediation or digital litigation systems – please get in touch.