Written by Rick Gregory, Editorial Lead · Legal information checked in collaboration with Edward & Amaury Solicitors (SRA 800525) · September 2026 · ~5 min read
Quick Summary
- A Conditional Fee Agreement (CFA) is the formal legal contract behind what's commonly called "no win, no fee" funding
- It sets out what happens if your claim succeeds, what happens if it fails, and the specific percentage success fee that applies to your case
- The success fee is capped by law at 25% of your general damages and past financial losses — never your whole compensation, and never future losses
- You should always receive a written agreement and be given the chance to read and understand it before you're asked to sign anything
What is a Conditional Fee Agreement?
A Conditional Fee Agreement, or CFA, is the legally binding contract that makes "no win, no fee" funding work. Under a CFA, your solicitor agrees to act for you without charging fees upfront. Whether and how much you pay depends — is conditional — on the outcome of your claim.
CFAs are governed by the Courts and Legal Services Act 1990 and the Conditional Fee Agreements Order 2013, which set out the framework, including the cap on how much of your compensation can be deducted as a success fee.
What happens if my claim succeeds?
If your claim succeeds, your solicitor deducts a success fee. This is capped by law at 25% of your general damages and past financial losses — it does not apply to your whole compensation, and it never applies to future losses such as future loss of earnings or future care costs. As is standard market practice, this cap is usually treated as inclusive of VAT, though your specific agreement will confirm exactly how it's calculated.
Your agreement will also set out any other deductions — such as an After the Event (ATE) insurance premium, if one was arranged — and how disbursements (costs like medical report fees) are handled.
What happens if my claim fails?
If your claim doesn't succeed, you generally pay no solicitor's fees under the agreement. ATE insurance, where arranged, is designed to cover the risk of having to pay the other side's costs if you lose — this is one of the main reasons ATE insurance exists alongside a CFA.
What should I check before I sign a CFA?
- The exact success fee percentage that applies to your case, and confirmation of whether it's VAT-inclusive
- What happens to any ATE insurance premium if the claim succeeds or fails
- Disbursements — what they are, and whether any are payable regardless of outcome
- Your obligations under the agreement — for example, cooperating with your solicitor, attending medical examinations, and not settling independently
- What happens if you want to end the agreement early, and any consequences of doing so
- Any circumstances in which you might still owe something, even if the claim doesn't succeed — for example, if you're found to have been dishonest
A reputable firm will explain all of this clearly and won't pressure you to sign before you've had a chance to read and understand it.
Is a CFA the only way to fund a personal injury claim?
For most accident at work claims, a CFA is the standard and most common funding arrangement, precisely because it removes upfront financial risk for the claimant. Other funding arrangements exist in some circumstances (such as legal expenses insurance you may already hold, sometimes through a home or motor policy), and your solicitor can advise if any alternative is relevant to your situation.
Can the success fee percentage be different for different claims?
Yes — while 25% is the statutory cap for the relevant heads of damage, the specific percentage agreed can be lower, and often is, particularly for claims with a strong prospect of success. It's always worth asking your solicitor to confirm the exact percentage that applies to your case rather than assuming the maximum.
Frequently asked questions
Do I need to pay anything before my solicitor starts working on my claim?
No — under a genuine no win, no fee CFA, there are no upfront fees for the solicitor's own work.
What if I don't understand something in the agreement?
Ask before signing. It's a legally binding contract, and a solicitor acting properly will take the time to explain any part of it in plain English.
Is the 25% cap the same for every type of personal injury claim?
The cap described here applies to first-instance personal injury proceedings, which covers the great majority of accident at work claims. See our no win, no fee guide for the fuller picture.
Ready to understand your own funding options?
A specialist solicitor can walk you through exactly what a CFA would mean for your specific case, with no pressure to commit.
Or call 01228 272395 to speak to Edward & Amaury Solicitors (SRA number: 800525). No upfront cost and nothing to pay if your claim does not succeed.