If you've been injured in a road traffic accident and you're worried about the cost of legal representation, a "no win, no fee" arrangement may allow you to pursue your claim without upfront legal fees. These agreements—formally known as conditional fee agreements (CFAs) and damages-based agreements (DBAs)—have been widely used in England and Wales since reforms in 2012. They mean your solicitor only recovers their fee if your case succeeds. This guide explains how the two main types of "no win, no fee" agreements work, what happens if you win or lose, and the regulatory protections that apply to your funding arrangement.

What Is a "No Win, No Fee" Agreement?

A "no win, no fee" agreement is a private funding arrangement between you and your legal representative under which the lawyer agrees to represent you on a contingency basis. A conditional fee agreement (CFA) is a private funding agreement between a lawyer and a client under which the lawyer agrees to represent the client on a 'no win, no fee' basis, and the lawyer does not generally receive a fee from the client if the case is lost.

There are two principal types of "no win, no fee" arrangement used in England and Wales:

  • Conditional fee agreements (CFAs): The solicitor charges a base fee plus a possible success uplift (up to 100% of the base costs) if you win, but nothing if you lose.
  • Damages-based agreements (DBAs): The solicitor takes an agreed percentage of your compensation if you win, but receives nothing if the claim fails.

DBAs are a type of 'no win, no fee' agreement under which a representative can recover an agreed percentage of a client's damages if the case is won, but will receive nothing if the case is lost. Both structures are governed by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 and associated regulations.

What This Means for You

If you instruct a solicitor on a "no win, no fee" basis in England or Wales, you will not normally be asked to pay your own legal fees upfront or as the case progresses. Your solicitor's fee is contingent on a successful outcome—whether that is a settlement or a court award. If your claim fails, you typically do not owe your solicitor anything for their time, though you may still face liability for the other side's costs (see below).

How Conditional Fee Agreements (CFAs) Work

Under a CFA, your solicitor agrees to take on your road traffic accident claim without charging you legal fees if the case is lost. If the case is won, the lawyers' costs (the 'base costs') are generally recoverable from the losing party, and the lawyer can charge an uplift on these base costs.

The Success Fee

If your claim succeeds, your solicitor may charge a "success fee"—an additional percentage on top of their standard costs. In all cases, the current maximum uplift that may be charged is 100% of the base costs. For example, if the base cost of your solicitor's work is £5,000, they may charge up to an additional £5,000 as a success fee, for a total of £10,000.

Since the 2012 reforms, the success fee is ordinarily deducted from your damages award rather than being recoverable from the losing party. This means that if you win, your final compensation will be reduced by the amount of the success fee, subject to any cap agreed in your CFA.

Who Pays Your Solicitor's Costs?

In England and Wales, if you win your personal injury case the defendant (or their insurer) will usually be ordered to pay your solicitor's base costs. The success fee, however, comes out of your damages. If you lose, you generally owe your own solicitor nothing under the CFA, but you may be liable for the other side's legal costs unless you have after-the-event (ATE) insurance in place.

How Damages-Based Agreements (DBAs) Work

A DBA works slightly differently: instead of charging a base fee plus an uplift, your solicitor agrees to take a fixed percentage of your damages if you win. The governing framework was amended by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 and the effect of the amendment, subject to exceptions, is to permit and regulate the use of DBAs in all civil litigation.

Under the Damages-Based Agreements Regulations 2013, the percentage your solicitor may take is capped, and the agreement must comply with detailed regulatory requirements. DBAs are less commonly used than CFAs in road traffic accident claims, but they offer a simpler fee structure: if you recover £20,000 in compensation and your DBA provides for a 25% fee, your solicitor will take £5,000 and you will receive £15,000.

If your claim fails under a DBA, your solicitor receives nothing.

What Happens If You Lose Your Claim?

One of the principal risks of pursuing a claim on a "no win, no fee" basis is the potential liability for the other side's legal costs if you lose. Cases are often taken on a contingency fee basis, colloquially known as 'no win, no fee' arrangements, which means if the tenant loses at court their solicitor is not paid for their time. However, the court may order the tenant to pay the landlords' costs, and sometimes after the event insurance can be taken to cover those adverse costs.

While that government guidance relates to housing disrepair claims, the same principle applies to road traffic accident cases in England and Wales: if you lose at trial, you may be ordered to pay the defendant's legal costs, which can be substantial.

After-the-Event (ATE) Insurance

Most claimants mitigate this risk by purchasing after-the-event insurance, which covers your liability for the other side's costs if your claim is unsuccessful. Your solicitor should explain the availability and cost of ATE insurance when you enter into a "no win, no fee" agreement. In some cases, the ATE premium may itself be deferred or contingent on a successful outcome.

Regulatory Protections and Oversight

Legal representatives offering "no win, no fee" agreements in England and Wales are subject to strict regulation. Regulators are the Solicitors Regulation Authority, the Bar Standards Board, the Claims Management Regulator and the Financial Conduct Authority, which oversee compliance with the relevant statutory and regulatory frameworks.

Your solicitor must provide you with clear, written information about the terms of your CFA or DBA before you enter into it, including:

  • What happens if you win or lose
  • How the success fee or percentage is calculated
  • Any deductions that will be made from your damages
  • Your potential liability for the other side's costs
  • The availability of ATE insurance

If your solicitor is regulated by the Solicitors Regulation Authority, they must comply with the SRA Standards and Regulations, which set out detailed conduct and transparency requirements for CFAs and DBAs.

Jurisdictional Scope: England and Wales Only

The rules discussed in this article apply to England and Wales. Scotland has a separate legal system and different rules for speculative fee agreements and success fee arrangements, governed by the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018. Northern Ireland also has its own civil procedure and funding rules. If your accident occurred in Scotland or Northern Ireland, you should seek advice from a solicitor qualified in that jurisdiction.

Is a "No Win, No Fee" Agreement Right for Your Road Traffic Accident Claim?

A "no win, no fee" arrangement can remove the main financial barrier to pursuing a personal injury claim—the fear of having to pay legal fees whether you win or lose. For many claimants, a CFA or DBA is the only viable way to access legal representation after a road traffic accident.

However, it is important to understand that:

  • If you win, a portion of your damages will ordinarily be deducted to cover your solicitor's success fee (under a CFA) or their agreed percentage (under a DBA).
  • If you lose, you will not owe your solicitor anything, but you may face a costs order in favour of the defendant unless you have ATE insurance.
  • The terms of your agreement should be clearly explained in writing before you sign.

Before entering into any "no win, no fee" agreement, you should:

  • Ask your solicitor to explain all costs and deductions clearly
  • Understand what happens if your claim succeeds or fails
  • Consider whether ATE insurance is appropriate
  • Ensure your solicitor is regulated by an approved regulator

Choosing a Regulated Solicitor

When instructing a solicitor on a "no win, no fee" basis, always check that they are regulated by one of the approved legal regulators in England and Wales. You can verify a solicitor's registration on the Solicitors Regulation Authority website or check the relevant regulator for barristers or claims management companies.

Do not be pressured into signing a CFA or DBA that you do not fully understand. You are entitled to take time to read the agreement, ask questions, and seek independent advice if necessary.

Last reviewed: 2026-08-29

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Disclaimer: This article is for general information only and does not constitute legal advice. The rules governing conditional fee agreements and damages-based agreements are complex and depend on the specific facts of your case and the terms of your funding agreement. You should always seek independent legal advice from a regulated solicitor before entering into any "no win, no fee" arrangement or making decisions about pursuing or settling a personal injury claim. UK Injury Solicitors does not recommend or endorse any specific law firm or claims management company. We are an independent editorial resource. While we make every effort to ensure the accuracy of the information provided, the law may have changed since the date of last review, and we accept no liability for reliance on this content.