The Taxing Master of the Court of Judicature of Northern Ireland has determined that the new solicitors’ hourly rate, to be applied on Taxation, will be £155.00 per hour.
The new rate will be effective from 1 June 2025 and will remain in force until 1 April 2027. It is prospective only and does not apply retrospectively.
The new rate represents a more than 50% increase on the current hourly rate of £102.00. However, an update was overdue given that it has been over 10 years since the guideline hourly rate in Northern Ireland was last reviewed in 2014.
On the direction of the Lady Chief Justice in 2024, the review of the hourly rate was undertaken by a working group chaired by Mr Justice McAlinden. As part of that review, BDO Northern Ireland were engaged to collect and analyse data on the cost of operating a solicitor’s practice in 2024. BDO’s evidence-based analysis was ultimately accepted by the working group.
Going forward, the guideline hourly rate will be reviewed periodically. The Taxing Master has, however, acknowledged that, while an evidence-based assessment is the most robust way to determine the hourly rate, there is a need to consider an appropriate methodology for adjusting the rate to allow for inflation. Further work will therefore be required regarding the appropriate index to be used and whether the rate should be adjusted annually, or over an alternative period.
The new guideline rate of £155.00 will therefore remain in place until 1 April 2027 to provide some certainty for the assessment of costs in the interim.
It should be noted that the new Rate of £155.00 is the basic guideline hourly rate and an uplift will be permitted by the Taxing Master for care, skill and attention, with the basic uplift for routine cases generally starting at 50%.
If you have any questions on this topic or would like to know how this affects your claims costs in Northern Ireland, please get in touch with the team.
Megan McBrien - Partner (representative on FOIL sector focus team for Northern Ireland costs)
Email: mmcbrien@keoghs.co.uk
Victoria McLean - Partner
Email: vmclean@keoghs.co.uk
Rachel Keenan - Partner
Email: rkeenan@keoghs.co.uk
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