Question to the Ministry of Justice:

To ask the Secretary of State for Justice, what assessment he has made of the effect on business productivity of expansion of mediation within the civil justice system.

We recognise the benefits of mediation to individuals and businesses in resolving disputes in a less adversarial manner. Where mediation is successful, both businesses and their customers will be spared the time and stress of litigation.

The impact assessment for the introduction of mandatory mediation for small claims estimated a 15-55% reduction in hearings, freeing up 1,400 – 5,200 sitting days per year.

The impact assessment for the introduction of mandatory mediation found that businesses make up 58% of all parties to small claims, and that the potential benefit to businesses of earlier settlement through mandatory mediation could be £25 million - £92 million per annum, based on a 15-55% settlement rate.

Between August 2024 and August 2025, a total of 81,206 cases were referred to mediation, 56,268 mediations took place, and 19,536 were successfully settled through mediation, representing an overall settlement rate of approximately 35%.

A formal evaluation will be published in the summer of this year and findings will inform decisions on further expansion of mandatory mediation.

We will consult with organisations such as the Federation of Small Businesses, Chamber of Commerce, and other relevant partners before making any final decisions on the further expansion of mandatory mediation.