Stewarts, along Collective Redress Lawyers Association (CORLA) and 18 other law firms have written to the Lord Chancellor and Justice Secretary, David Lammy, calling for clarity around litigation funding. The Financial Times reported on the letter, which asks the government to legislate to resolve the uncertainty around litigation funding regulation to ensure access to justice.

On 2 June 2025, the Civil Justice Council (CJC) published a report into third party funding in civil litigation recommending a series of reforms. This report followed the 2023 Supreme Court decision, known as PACCAR, which caused confusion around the enforceability of litigation funding arrangements. Julian Chamberlayne, Risk and Funding Partner at Stewarts was part of the CJC’s wider consultation group working on this topic.

The CJC made a number of recommendations but stressed in both its foreword and executive summary that the most pressing issue was for urgent standalone legislation to reverse the effects of PACCAR to end the uncertainty damaging access to justice. The letter calls upon the new justice secretary to put this on the governments agenda.  The letter concludes by saying “we call on the Government to act swiftly and legislate for the sake of claimants and the reputation of the UK’s justice system.”

Julian Chamberlayne commented:

“Litigation Funding enables consumers, business owners and insolvent businesses to bring litigation they would otherwise not have means to bring. The CJC’s key proposals, including the reversal of PACCAR by legislation, the rejection of caps on litigation funders’ returns and the rejection of state-level regulation of funding in arbitration, once implemented, will strengthen England’s reputation as a leading jurisdiction for dispute resolution.

“However, there is a risk of that excellent reputation, and the major contribution the legal sector makes to GDP, both being diminished unless the government acts quickly. We call upon the government to put this on the legislative agenda for 2025.”

The FT article can be read here in full (subscription required): Drop in class action cases sparks warnings over litigation funder curbs

The full Civil Justice Council review can be read: Civil Justice Council review of litigation funding

Our previous articles on this theme can be read here:

• CJC Report recommends extensive reform of third party funding and DBAs for commercial disputes
• What does the CJC’s report recommend for third party funding of consumer and class actions? 
• How will the CJC recommendations for CFAs, DBAs and TPF impact serious injury claims?
• Stewarts responds to Civil Justice Council review of litigation funding