Costs lawyers are regulated legal professionals who specialise in law relating to legal costs

As a costs lawyer, you'll ensure that a business relationship between a lawyer and their client is properly established, so that any legal costs incurred can be charged appropriately. This can include advising clients on issues like litigation costs, the cost of legal services (such as solicitors’ or barristers’ fees), and legal aid costs.

Costs lawyers are increasingly involved earlier in the litigation process, advising on solicitor-client retainers, cost estimates, and costs budgeting. You may manage a claim through to final settlement and at the conclusion of proceedings deal with costs assessments.

You'll need to have knowledge of all areas of legal practice to work as a costs lawyer. The facts and procedure followed in each case will be different, which will allow you to use and develop different skills and build your legal knowledge.

Costs lawyers are the only branch of the legal profession with detailed knowledge and expertise in the legal costs field. Qualified cost lawyers are regulated by the Costs Lawyer Standards Board (CLSB).

Types of costs lawyer work

You may work on:

  • the costs between the parties - unsuccessful litigants are usually ordered to pay the successful litigant's costs. If costs can't be agreed, a detailed bill is prepared and served.
  • solicitor and client costs - the costs a client pays their own solicitor. Different rules apply to costs where court proceedings have already commenced (known as contentious business) to those for non-contentious matters, such as conveyancing, probate and general advice. Clients who are unhappy with a solicitor's bill can challenge it - at this point a costs lawyer may be instructed to prepare a detailed bill of costs, can advise on law and cost procedure, and may argue in support of (or oppose) the bill.
  • legal aid or public funding - where a solicitor is representing a publicly funded client, a detailed bill is usually required by the court of the Legal Aid Agency before payment can be made from the community legal fund.

You may work in a particular specialism, for example legal aid work, work with either claimants or defendants, or undertake a broad range of work.

Responsibilities

As a costs lawyer, you'll need to:

  • manage a costs caseload of claimant or defendant costs files
  • prepare costs budgets and advise on costs budgets presented by an opposing party
  • draft bills of costs and schedules of costs
  • draft points of dispute and replies to costs claims
  • advise on retainers and fee arrangements between clients and their legal advisers
  • advise and help in all aspects of the recovery of costs
  • negotiate on cost offers
  • advise on and prepare claims for costs from public funds (Legal Aid)
  • liaise with external agencies such as the Legal Aid Agency
  • work closely with accounts teams
  • maintain and update client records
  • provide accurate reports
  • attend costs assessments and advocate at costs-related hearings
  • act as a costs mediator or arbitrator in costs disputes, advising on disputes between solicitors and their clients
  • supervise junior costs employees as you develop your own career
  • keep up to date with best practice and compliance matters.

Salary

  • As a trainee or junior costs lawyer, usually known as a costs draughtsman, you'll typically earn £25,000 to £32,000.
  • Experienced costs lawyers, with up to five years of qualified work, can expect to earn between £35,000 and £50,000.
  • Costs lawyers with five to ten years' experience may earn between £50,000 and £90,000. It is occasionally possible to earn more if you have extensive experience and are working for a major London firm.

Salaries depend on a range of factors including your location. Salaries in and around London, for example, are typically higher than in other regions. Other factors that can affect salary include your area of work, type of employer and level of experience.

Some companies offer performance bonuses. Additional benefits may include a pension, discounted gym membership, private healthcare and life/critical illness insurance. Check the full salary package when applying for jobs.

Working hours

Working hours are largely dependent on your employment type and the area of costs you work in. A costs lawyer will typically work regular office hours over a 37.5-hour week, though extra hours may be needed occasionally to meet deadlines.

If you work independently and run your own firm, you'll set your own working hours.

If you appear in court to deliver or dispute a case, your working hours will reflect court operating hours. Courts typically sit from 10am until 4pm, but you'll also need time outside these hours to prepare documents and meet clients.

What to expect

  • You may work in an office, although flexible arrangements such as home working or agile working are increasingly common.
  • The variety of your workload in a law firm depends on the areas of practice they cover and the clients they represent. A costs company may offer wider exposure to different sectors and client types, including individuals, solicitors and businesses.
  • Your dress code is likely to be business dress, in line with the professional working environment.

Qualifications

To qualify as a costs lawyer, you need to complete the Level 6 Costs Lawyer Qualification and two years of qualifying experience. The qualifying experience is carried out under supervision and can be taken before, during or after your study. The qualification is provided by ACL Training, the education arm of the Association of Costs Lawyers.

The course is split into three units and includes assignments, practical seminars and exams at the end of each unit. It is delivered via distance learning as trainees are usually in full-time employment. If you don't already have any legal qualifications, you will have to complete all three units, which takes three years.

To enrol, you must be at least 18 years old and have one of the following or equivalent:

  • four GCSEs at grade 4 or above, including English and maths
  • two A-levels and one GSCE, including English
  • three AS level passes, including either English or maths
  • GNVQ at intermediate or advance level (if a communications skills element is included)
  • passed a written aptitude test set by the ACL.

If you have a qualifying law degree, or other relevant legal qualification, you may qualify for exemptions from some of the course modules or units. This can reduce the time it takes to complete the qualification to 12 months, depending on the level and content of your qualification. Contact ACL Training for further information about exemptions.

Once you've successfully completed both the qualification and supervised practice, you can apply to the Costs Lawyer Standards Board (CLSB) for a practising certificate that enables you to perform the following acts, provided for under the Legal Services Act 2007 the:

  • exercise of a right of audience
  • conduct of litigation
  • administration of oaths.

Most trainee costs lawyers are sponsored by their employer. It's possible to study without working in a costs department, but this is rare and requires an interview at the end of training to ensure professional standards are met.

Skills

You'll need to have:

  • analytical skills, for the practical application of the law to cases
  • excellent written and oral communication skills for preparing reports, written submissions and conducting advocacy in court
  • negotiating skills, as the job requires frequent litigation work
  • numeracy skills and the ability to work with data
  • competence with IT systems and legal software
  • logical problem-solving skills
  • attention to detail and accuracy
  • the ability to budget for case costs, including contingency planning and forecasting
  • time management skills and the ability to meet tight deadlines
  • the ability to work well under pressure
  • the capacity to multitask and prioritise
  • up-to-date knowledge in relevant areas for cost analysis
  • a willingness to learn and develop as a trainee.

Work experience

Experience in litigation or legal costs is valuable. This may involve working in the costs department of a law firm, working as a legal intern or assistant, or as a paralegal with a workload that requires costing out claims, budgeting and forecasting.

You could consider a work placement or internship in an in-house legal team within an organisation to develop your understanding of how a business operates and the legal processes involved in areas such as company secretary work, compliance, data protection, contracts and costs.

Other ways to get experience include in a finance department, as a court clerk, or in legal/finance roles in local government or insurance companies.

Find out more about the different kinds of work experience and internships that are available.

Employers

You'll mainly work with firms of solicitors, but you may also be instructed by members of the public, including businesses.

Some costs lawyers work in-house for a firm of solicitors, for firms that deal solely with legal costs or independently.

Practices can range from sole practitioners to multinational firms with offices all over the world.

Some costs lawyers set up their own independent costs companies. You can set up your own business representing professional clients such as solicitors and chartered legal executives, individual lay clients and business clients.

There are also a small number of specialist barrister's chambers who advise and represent clients who require specialist claims.

Look for job vacancies at:

Specialist legal recruitment agencies such as Douglas Scott also also advertise vacancies.

Try to build a network of contacts from any work experience you do or any interviews you attend. Staying in touch with mentors or teachers may also present opportunities later.

Find law firms you're interested in and attend open days or recruitment fairs.

Professional development

Once you're qualified and have obtained your practising certificate, you must keep your skills and knowledge up to date by undertaking continuing professional development (CPD) activities each year. Activities can include:

  • attending conferences and seminars
  • attending training and events
  • delivering training
  • researching and reading
  • writing articles for journals, such as The Costs Lawyer Journal, and other publications
  • supervising trainee costs lawyers.

Your practising certificate must be renewed annually, and you need to obtain a minimum of 12 CPD points per year. You must record and evaluate your CPD, reporting it to the CSLB when requested. For more information, see CLSB - CPD requirements.

As a qualified costs lawyer, you can become a full member of the ACL. Membership provides a range of benefits, including access to training, events and conferences, as well as the opportunity to network with other costs lawyers.

Career prospects

You might begin as a law costs clerk or costs draftsman, progressing to junior or trainee costs lawyer, then to costs lawyer. Further roles include costs manager, senior costs lawyer, partner, or managing director of your own firm.

Costs lawyers can become partners in law firms. Alternatively, you may run your own business offering legal costs services.

You could work for an insurance company in the legal costs department and progress to costs manager then senior costs lawyer, running your own team or your own department.

Your skills may also suit other financial legal roles, such as compliance officer, barristers’ clerk, or legal project manager.

Once you reach a certain level in a firm you can expect greater autonomy and decision-making opportunities.

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