What is a Conditional Fee Agreement (CFA)?

A conditional fee agreement (CFA) is the formal name for the no win no fee service that is used when making a personal injury claim.

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What is a Conditional Fee Agreement?

A conditional fee agreement (CFA) is the formal name for a no win no fee agreement. It is a legally binding contract between you and your solicitor, where the solicitor’s fees are only paid if the claim is successful. This removes the financial risk of pursuing compensation.

CFAs are the most common funding options for legal disputes, especially those related to personal injuries. A conditional fee agreement can be used to claim compensation for road accidents, workplace accidents, medical negligence, criminal assaults and many other cases.

This guide explains how CFAs work, their key benefits, who is eligible to enter a CFA and what happens if you lose a no win no fee compensation claim.

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What are conditional fee agreements in personal injury claims?

If you suffer an injury because of somebody’s negligence, you will most likely want to claim compensation from them. While a solicitor is not legally required to make a personal injury claim, having specialist legal support can substantially increase your chances of success.

CFAs were first introduced in the UK in the 1990s under the Courts and Legal Services Act 1990 and established through the Conditional Fee Agreements Order 1995.

Their purpose was to provide access to justice for those who were not eligible for legal aid or did not have the financial means to pay for legal representation themselves. The basic principles of a CFA are that:

You do not have to pay any legal fees upfront.
If the case is lost, the solicitor will not charge you for their work.
If you win the claim, the solicitor will be paid in the form of a success fee.

An After the Event (ATE) insurance policy is often included in no win no fee agreements. This will cover any potential legal costs or disbursements you might have to pay if you lose the case, such as court fees, expert witnesses and the defendant’s costs.

What is the success fee?

The success fee in a CFA is a percentage deducted from your compensation award if the claim is won. This is designed to compensate your lawyer for their work and the risk they took by offering you a conditional fee agreement and not being paid if the case is lost.

The success fee is capped by law at 25% of your general damages and past financial losses. It does not apply to future losses, such as lost earnings or earning capacity, care costs and ongoing medical treatments.

The exact percentage that will be deducted will be agreed with your solicitor when you sign the CFA, so you will know upfront how much will be deducted from your compensation.

For example, let’s say you receive £20,000 in compensation for pain, suffering and lost earnings. If the agreed success fee is 25%, then £5,000 would go to your lawyer, and you would keep £15,000, plus any future damages.

Before 1 April 2013, the success fee could be recovered in part or in whole from the losing party. If your claim is unsuccessful, you won’t pay the success fee or any other legal fees.

What details must be included in a conditional fee agreement?

A conditional fee agreement is a written, legally binding contract between you and your solicitor. It must be clear and transparent and plainly state the terms of the funding arrangement so that both you and your solicitor know precisely what to expect.

Ideally, the CFA should include the following details:

The specific legal issue or claim that the CFA relates to.
A clear explanation of the legal terms for your understanding.
The conditions that must be met for the solicitor’s fees to become payable.
The exact amount payable to your solicitor under different circumstances.
How the success fee will be calculated.
Your responsibilities and the circumstances under which you are liable for fees.
A statement that you are not liable for fees if the claim is lost.
The conditions under which you or the solicitor can terminate the agreement.

What types of claims can be funded by a conditional fee agreement?

A conditional fee agreement can be used to fund a wide range of compensation claims, including:

Road traffic accident claims involving car, motorbike, cyclist and pedestrian accidents.
Workplace accident claims, such as falls from height, machinery accidents, manual handling injuries and industrial diseases.
Public liability claims for accidents such as slips, trips and falls in shops, restaurants or on pavements.
Medical negligence claims, including surgical errors, misdiagnosis, birth injuries and dental negligence.
Criminal injury claims through the CICA following assaults and violent crimes.
Product liability claims for injuries caused by defective or unsafe products.
Fatal accident claims brought by family members for the wrongful death of a loved one.

What are the benefits of a CFA?

When entering a conditional fee agreement, the solicitor and the client agree to share the risk of litigation. This brings various benefits for you as a claimant, including:

You do not have to pay a single penny upfront to start your claim.
You have access to legal representation regardless of your financial situation.
You know you have a fair chance at compensation, and you are not wasting your time.
There is no financial risk, as you only pay your solicitor if you win compensation.
It ensures your solicitor is highly motivated to achieve a successful outcome.
The fee you pay to your solicitor if you win is capped and agreed upon from the beginning.
There is reduced stress and peace of mind knowing that you have nothing to lose.

What happens if you win a claim under a CFA?

Here’s what usually happens if you enter into a CFA and you win your claim:

The defendant will pay you the settlement or the amount awarded by the court.
Your solicitor will deduct their success fee from your compensation.
If you took ATE insurance, the cost of the premium will also be deducted from your payout.
After all deductions are made, you will receive the rest of the compensation in your bank account or a personal injury trust.

What happens if you lose a claim under a CFA?

If you lose your claim and you are not awarded compensation, you will not be required to pay any legal costs to your solicitor.

However, you may be responsible for covering your opponent’s legal costs as well as other expenses and disbursements. If you took out After the Event insurance, this policy would usually cover these costs, including the cost of its premium.

This ensures you will not be left out of pocket, giving you peace of mind that you won’t face unexpected costs if your case does not succeed.

Do all personal injury solicitors offer CFAs?

Most specialist personal injury solicitors will help you make a claim under a conditional fee agreement if you have a fair chance at compensation.

The personal injury lawyers that we partner with will offer you a free case assessment, and if you are eligible to proceed, they will be prepared to provide you with a CFA. This will make it easier for you to pursue compensation without taking any financial risk.

Am I eligible to make a No Win No Fee claim?

A solicitor will be able to let you know if you can make a claim under a no win no fee arrangement during a free initial consultation. They will ask you a few questions to verify whether:

Another party (the defendant) owed you a legal duty of care.
They breached this duty and caused or contributed to an accident.
You suffered an injury or illness as a direct result of their negligence.
You are within the legal time limit to make a claim (generally three years).

If these can be established, you will be able to make a claim on a no win no fee basis.

Summary

A conditional fee agreement is a contract between you and your solicitor that allows you to make a claim without paying any upfront legal fees. Furthermore, you only pay your solicitor if your case is successful, in the form of a success fee deducted from your compensation.

If you lose, you won’t pay your solicitors a single penny, which makes CFAs a low-risk and accessible way to pursue fair compensation.

Call 0800 470 0474 today or request a call back to find out if you are eligible to make a compensation claim by signing a conditional fee agreement with one of our partner solicitors.

Last edited on 7th Oct 2025

With over 15 years’ experience in the legal sector, Nicholas Tate (LLB Hons, LLM in Health Law) has extensive experience across all areas of personal injury and medical negligence claims.