Guideline Hourly Rates 2025 vs 2026: London and National Bands - and how they are used at Detailed Assessment

Guideline Hourly Rates (GHR) are used by the courts as a starting point when assessing the reasonableness of hourly rates between parties. They are not caps and may be exceeded where complexity, specialist work, or proportionality justify a higher rate at detailed assessment. The 2026 Guideline Hourly Rates came into force on 1 January 2026 following an inflationary uplift applied to the 2025 figures.

The rate allowed in any case depends on:

• complexity and specialist features

• value and importance of the dispute

• efficiency and delegation

• the work actually undertaken

• proportionality and necessity

This is why GHR frequently become a live issue at detailed assessment. Paying party costs disputes very regularly feature Hourly rate disputes.

How Courts Use Guideline Hourly Rates

The guideline figures are a reference point, not an entitlement. Courts assess hourly rates by considering complexity, the experience of the fee earner, delegation, and proportionality. Even where rates fall within guideline figures, they may be reduced if the work was excessive or carried out at the wrong level.

2026 Guideline Hourly Rates (with 2025 comparators)

Grade A — Over 8 years’ experience

• London 1: £579 (£566)

• London 2: £422 (£413)

• London 3: £319 (£312)

Grade B — Over 4 years’ experience

• London 1: £393 (£385)

• London 2: £327 (£319)

• London 3: £262 (£256)

Grade C — Other solicitors and equivalent fee earners

• London 1: £305 (£299)

• London 2: £276 (£269)

• London 3: £209 (£204)

Grade D — Trainees, paralegals and other fee earners

• London 1: £210 (£205)

• London 2: £157 (£153)

• London 3: £146 (£143)

National Guideline Hourly Rates: 2025 vs 2026

Grade A — Over 8 years’ experience

• National 1: £295 (£289)

• National 2: £255 (£249)

Grade B — Over 4 years’ experience

• National 1: £230 (£225)

• National 2: £218 (£212)

Grade C — Other solicitors and equivalent fee earners

• National 1: £177 (£173)

• National 2: £178 (£173)

Grade D — Trainees, paralegals and other fee earners

• National 1: £126 (£123)

• National 2: £126 (£123)

These figures reflect the guideline rates used by courts as a reference point. They may be departed from where justified.

Why Guideline Hourly Rates Become Contested

Hourly rates are one of the biggest drivers of the overall bill. Paying parties often challenge:

• rates above guideline figures

• the grade claimed

• senior time used for routine work

• duplication between fee earners

• insufficient delegation

GHR disputes usually form part of a broader challenge to reasonableness and proportionality

Paying parties frequently rely on the guideline figures to challenge excessive rates, incorrect grade allocation, and lack of delegation, particularly in lower value or streamlined claims.

When Courts Allow Rates Above GHR

Courts may allow higher rates where justified by evidence, including:

• genuine complexity or specialist requirements

• urgent or demanding litigation

• the nature of the claim requiring sustained senior involvement

What fails is assertion without proof. The court expects evidence that the work and delegation justify the rate at detailed assessment.

How Paying Parties Successfully Challenge Rates

Strong challenges focus on:

• whether the case was routine

• whether the work matches the grade claimed

• unnecessary partner or senior involvement

• duplication between fee earners

• whether conferences and attendances were necessary

The most effective arguments link hourly rates to proportionality and necessity, which are often central in paying party costs disputes.

The Proportionality Issue

Even rates aligned with GHR can be reduced if total costs are disproportionate to:

• the sums in issue

• importance of the matter

• complexity

• conduct and efficiency

Rate disputes therefore form part of a wider recoverability assessment.

Common Mistakes Leading to Reductions

Reductions arise where:

• grade is not justified

• complexity is asserted but not evidenced

• routine tasks are billed at senior rates

• delegation is poor

• time recording does not support the claim

Why This Matters

Understanding GHR affects:

• exposure modelling

• negotiation leverage

• settlement strategy

• how points of dispute are framed

• evidence needed at assessment

The most effective challenges focus on proportionality, necessity and conduct, all of which are central to successful paying party costs disputes at detailed assessment.

Key Takeaways

• 2026 GHR increased across London and National bands

• GHR are guidance, not guarantees

• Successful challenges are evidence-based

• Even guideline-level rates can fall on proportionality

• Delegation and justification are critical.

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