CAB's accused of ramping up claims

Anecdotal evidence suggest Citizens Advice Bureau are regularly conspiring to help claimants avoid ET fees by actively advising them to exaggerate their dispute - encouraging them to add allegations of whistle blowing or discrimination and passing claimants on to no-win/no-fee law firms. As a consequence, while ET numbers are down, representation costs have multiplied by 4 as claimants (backed by motivated funders) refuse to settle early. We estimate average representation costs on lawyer backed employment claims have reached £8,500. That is a big hit for most SME employers and excludes settlement costs - with discrimination claims averaging £35k.

Our own research suggests ATE insurers are now funding ET fees in 12.5% of Tribunal claims. These ATE policies are typically underwritten on a deferred and contingent basis, so there is no downside for the claimant if they lose - but they do have to repay the loan if they win. The cost of insurance, fees and interest averages £2500 so there is a quantum issue for such cases that is being factored into settlement attitudes.