Guideline Hourly Rates 2026: A Welcome Uplift – and a More Certain Framework for Costs
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New Guideline Hourly Rates (GHR) came into force on 1 January 2026, following an announcement by Sir Geoffrey Vos, Head of Civil Justice.
The update follows recommendations from the Civil Justice Council and applies a further inflationary uplift to reflect economic conditions affecting the legal profession.
For solicitors acting for both paying and receiving parties, the update brings something particularly valuable: greater certainty.
Inflation recognised - predictability restored
The Master of the Rolls confirmed that the 2026 rates reflect updated Service Producer Price Inflation (SPPI) data through to Q1 2025.
In practical terms:
A 6.66% uplift was applied in January 2024
The 2026 update applies a further 2.28% increase
While the uplift itself is modest, the significance lies in the approach. Regular, inflation-linked updates reduce the historic mismatch between guideline rates and economic reality, benefiting both sides of costs disputes.
Guideline Hourly Rates 2026
The new rates (with 2025 figures in brackets) are:
Grade A – Over 8 years’ experience
London 1: £579 (£566)
London 2: £422 (£413)
London 3: £319 (£312)
National 1: £295 (£288)
National 2: £288 (£282)
Grade B – Over 4 years’ experience
London 1: £393 (£385)
London 2: £327 (£319)
London 3: £262 (£256)
National 1: £247 (£242)
National 2: £247 (£242)
Grade C – Other solicitors and equivalent fee earners
London 1: £305 (£299)
London 2: £276 (£269)
London 3: £209 (£204)
National 1: £201 (£197)
National 2: £200 (£196)
Grade D – Trainees, paralegals and other fee earners
London 1: £210 (£205)
London 2: £157 (£153)
London 3: £146 (£143)
National 1: £142 (£139)
National 2: £142 (£139)
Why the update matters — on both sides of the fence
For receiving parties, the updated rates provide:
more realistic recovery benchmarks,
stronger support on assessment, and
reduced erosion of costs by inflation.
For paying parties, the benefits are just as real:
clearer expectations on likely outcomes,
fewer arguments rooted in outdated figures, and
a more stable framework for negotiation and settlement.
In short, better guidelines mean fewer artificial disputes and more focus on the real issues: proportionality, necessity, and evidence.
Signals of further reform
Sir Geoffrey Vos also confirmed that the Civil Justice Council has established a working group to consider:
whether guideline rates can be produced for counsel’s fees, and
whether a new top rate for complex commercial work should be introduced.
An interim report is expected later this year, suggesting that further refinement of the guideline rates regime remains firmly on the agenda.
A more effective reference point - not a blunt instrument
Guideline Hourly Rates are not a cap, nor are they an entitlement. They are a tool. The 2026 update makes that tool more accurate and more useful, provided it is applied with proper judgment.
That requires an understanding of how rates are viewed:
by the court,
by opponents,
and on assessment.
How SPH Costs can help
At SPH Costs, we act for both paying and receiving parties. That perspective matters.
It means we:
understand how guideline rates are argued for and against,
advise realistically on exposure and recovery,
strengthen evidence where rates are justified, and
challenge them where they are not.
Whether you are seeking to recover costs or control them, the 2026 Guideline Hourly Rates provide a clearer framework, and we can help you navigate it effectively.
Contact Costs Lawyer Andrew Armson - 01772 435550 or aa@sphcosts.com