In December 2024, the Government published and laid before Parliament a report on the Government’s review on introducing costs protections in civil recovery proceedings in the High Court under part 5 of the Proceeds of Crime Act 2002.
The report stated that the Government have run a targeted engagement exercise seeking views from key stakeholders across law enforcement, the judiciary, civil society, the legal profession, and other Government Departments on whether it would be appropriate to restrict the Court’s power to order costs payable by an enforcement authority in civil recovery cases in the High Court. The reference to the legal sector being engaged was incorrect. Since December 2024, officials have met with the legal sector to seek their views. This statement is being made to address the inaccuracy in the original report and to update Parliament on the legal sector’s views. The legal sector understood the rationale for enforcement authorities to have cost protections for civil recovery cases. To mitigate any civil justice concerns, it supported the inclusion of additional safeguards such as the “just and reasonable” test to afford additional judicial discretion on when this measure could be applied.
Since this engagement, the Crime and Policing Bill 2025 has been introduced to Parliament. The Bill includes a costs protections measure which will protect enforcement agencies from paying costs during civil recovery proceedings unless the authority is judged to have acted unreasonably, dishonestly or improperly. The aim of this provision is to remove barriers to using civil recovery so enforcement agencies are not exposed to high legal costs when they act in the public interest.
These civil recovery powers are a valuable tool in the fight against crime and cost protections will remove the strain on enforcement agencies’ budgets that might stop them from pursuing cases. We will continue to engage the legal sector and enforcement agencies to make sure the provisions continue to reflect the views of all those affected.
Copies of the updated report will be available in the Vote Office, and it will also be published on gov.uk.
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