The Ministry of Justice has launched a consultation putting forward proposals requiring claimants to pay fees for lodging and pursuing tribunal claims. The aim is to lower the £84m cost to the tax-payer of running tribunals.

By introducing tribunal fees for lodging and pursuing claims to a hearing, the Government is aiming to relieve the £84m cost per year to the taxpayer by ensuring that those who use the service pay towards it. The Government is also hoping to help businesses by discouraging unmerited claims and encouraging early settlement. Consultation launched by the Ministry of Justice is designed to ensure that while those who use the system make a financial contribution, access to justice for those on low incomes or limited means, will be protected.

The consultation puts forward two options for consideration: (i) an initial fee of between £150-£250 for a claimant to begin a claim, with an additional fee of between £250-£1250 if the claim goes to a hearing, with no limit to the maximum award; or (ii): a single fee of between £200-£600 – but this would limit the maximum award to £30,000 – with the option of an additional fee of £1,750 for those who seek awards above this amount. In both options the tribunal would be given the power to order the unsuccessful party to reimburse fees paid by the successful party. The consultation will close in March 2012, with a view to introduce the fees not before 2013-14.