Question to the Ministry of Justice:

To ask His Majesty's Government what steps they plan to take to mitigate the impact on third party litigation funding of the judgment in R (on the application of PACCAR Inc and other) v Competition Tribunal & others [2023] UKSC 28 and to clarify the status of litigation funding agreements as separate damages-based agreements.

The Government recognises the critical role third-party litigation funding plays in ensuring access to justice.

Following the PACCAR judgment, concerns have been raised about the need for greater regulation of Litigation Funding Agreements, including the need for greater safeguards for claimants. The Civil Justice Council is considering these questions and others in its review of third party litigation funding, and recently published its interim report and consultation.

The Government is keen to ensure access to justice in large-scale and expensive cases, whilst also setting up adequate safeguards to protect claimants from unfair terms.

The Government will take a comprehensive view of any legislation or further work needed to address the issues raised in the PACCAR litigation in the round once the Civil Justice Council review has concluded, which is expected in summer 2025.