A conditional fee agreement (CFA) is the legal contract behind "no win, no fee". Under it, your solicitor only charges their fees if your claim succeeds; if you lose, you generally do not pay their charges. If you win, the solicitor can add a success fee on top of their basic costs, which in personal injury cases is capped at 25% of certain damages. After-the-event (ATE) insurance and the qualified one-way costs shifting rules protect you from paying the other side's costs in most cases.
Most people who bring a personal injury claim in England & Wales do so on "no win, no fee" terms — but few know what they are actually signing. The contract behind that phrase is the conditional fee agreement (CFA), and understanding it helps you see exactly how your solicitor is paid, what comes out of your compensation, and what happens if the claim fails. This guide explains it in plain English. We are an independent information service, not a law firm, and this is general information, not legal or financial advice.
What a conditional fee agreement is
A CFA is a written agreement between you and your solicitor under which their professional fees are conditional on success. Put simply:
- if your claim succeeds, you pay your solicitor's costs (usually recovered in large part from the losing side) plus a success fee;
- if your claim fails, you generally pay nothing towards your solicitor's professional charges.
CFAs were introduced to widen access to justice after the decline of legal aid for most injury claims, and they are now the standard way these cases are funded.
The success fee and the 25% cap
The success fee is an extra percentage on the solicitor's basic costs that reflects the risk of running a case that might lose. The key reform to understand is the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO): since then, the success fee is no longer recoverable from the losing party and instead comes out of your damages.
💡 Your damages are protected by a cap
In personal injury claims, the success fee is capped at 25% of certain heads of your damages — broadly your general damages (for the injury) and past financial losses, but not damages for future loss. This cap exists to make sure the success fee cannot swallow your compensation. Your solicitor must explain the percentage before you sign.
What you pay if you lose
Two questions matter if a claim fails: your own solicitor's fees, and the other side's costs.
- Your own solicitor: under a CFA, you generally pay nothing towards their professional fees if you lose.
- The other side: personal injury claimants are protected by qualified one-way costs shifting (QOCS), which usually prevents a losing claimant from having to pay the defendant's costs — subject to exceptions, for example where a claim is found to be fundamentally dishonest.
ATE insurance and QOCS together
Even with QOCS, a failed claim can leave some costs — typically disbursements such as medical report and court fees. This is where after-the-event (ATE) insurance comes in: a policy taken out after the accident to cover those costs if the claim fails, often with a premium that is deferred and only payable if you win. Together, QOCS and ATE mean that, in most personal injury claims, a genuine but unsuccessful claim does not leave you out of pocket — but you should always confirm the detail with your solicitor.
What to check before you sign
- The success fee percentage and how it is calculated.
- What disbursements you might be liable for, and whether ATE insurance covers them.
- What happens if you stop the claim or do not follow advice.
- That the firm is SRA-regulated — see choosing a solicitor.
A conditional fee agreement is not free money — the success fee comes out of your damages. But the 25% cap, QOCS and ATE insurance are designed so that an honest claim that fails should not cost you, and one that wins should not be swallowed by costs.
Frequently asked questions
What does a conditional fee agreement mean?
A conditional fee agreement (CFA) is a contract between you and your solicitor under which their fees are conditional on the outcome. If your claim is unsuccessful, you generally pay nothing towards your solicitor's professional charges. If it succeeds, you pay their costs — usually recovered largely from the losing side — plus a success fee, which in personal injury cases is capped at a percentage of your damages. It is the most common way personal injury claims are funded in England and Wales.
What is the success fee and is it capped?
The success fee is an additional percentage the solicitor can charge on their basic costs to reflect the risk of taking a case that might lose. Since the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO), the success fee in a CFA is no longer recoverable from the losing party and instead comes out of your damages. In personal injury claims it is capped at 25% of certain heads of damages (broadly, general damages and past financial loss), protecting your compensation.
Do I pay anything if I lose with a CFA?
Generally you do not pay your own solicitor's professional fees if you lose under a CFA. You also have significant protection against paying the other side's costs through 'qualified one-way costs shifting' (QOCS) in personal injury claims, and after-the-event (ATE) insurance can cover disbursements such as expert and court fees. Always check exactly what your particular agreement and any insurance cover, and what happens in unusual situations.
What is after-the-event (ATE) insurance?
ATE insurance is a policy taken out after an accident to cover certain costs if your claim fails — typically disbursements like medical report fees, court fees and, in some situations, an opponent's costs that QOCS does not protect against. The premium is often deferred and self-insured, meaning it is only payable if you win. Your solicitor will explain whether ATE is needed for your claim and how it works.
Is a CFA the same as no win no fee?
In everyday language, yes — 'no win, no fee' usually means a conditional fee agreement. CFAs are the most common no-win-no-fee arrangement, but there are others, such as damages-based agreements (DBAs), where the fee is a percentage of the damages recovered. The key feature they share is that you do not pay your solicitor's professional fees if the claim does not succeed.
Get help from official, free sources
- Solicitors Regulation Authority (SRA) — check a solicitor or firm is regulated
- The Law Society — Find a Solicitor — find an accredited personal injury specialist
- Citizens Advice — free, impartial guidance on your rights
- GOV.UK — courts, time limits and official claim portals
Related guides: no win, no fee explained, choosing a solicitor, how compensation works and how long a claim takes.