An article published today in The Law Society Gazette reveals that huge sums of money from the global private credit market could potentially flow into UK litigation funding. We should all be concerned that a new category of investors could end up treating our legal system as an asset class, backing law firms to deliver double-digit yields.
So where will these new investors hope to find their profits?
The answer lies in the push for “earlier settlement”. As reported in Global Competition Review, funders have told the Department for Business & Trade that defendants should pay their costs sooner to make cases resolve faster. In practice, that means turning up the pressure – through media, PR and reputational risk – until businesses settle, whatever the merits.
This isn’t access to justice. It’s access to settlement pressure, driven by private capital and wrapped in the language of consumer protection. We’ve already seen coordinated efforts on LinkedIn and in the legal press recently to dismiss independent evidence that questions this model.
The UK needs to guard against this. Our courts shouldn’t become a playground for speculative finance. Every pound spent on claims that deliver no redress is a pound not invested in jobs, innovation or growth.
What’s needed now is balance – a fairer system with proper guardrails. One that protects genuine consumer redress while maintaining trust in our courts, and that ensures the UK remains a predictable and competitive place to do business.
