What is a Conditional Fee Agreement (CFA)?

Updated: 3 Oct, 2025
By Chris Salmon

A Conditional Fee Agreement (CFA) is a legal funding arrangement where a solicitor’s payment is conditional on a specific outcome, such as winning your case. CFAs are more commonly referred to as No Win, No Fee agreements.

Most work injury claims are funded through CFAs, which remove the financial risk of making a claim.

At a glance

  • You only pay legal fees if your claim is successful.
  • Solicitors charge a success fee capped at 25% of compensation.
  • ATE insurance covers the defendant’s costs if you lose.
  • A 10% uplift in damages offsets success fees (Jackson Reforms).
  • You can cancel a CFA within 14 days under consumer law.
  • Over 90% of injury claims are now funded on a No Win No Fee basis (CFA), according to Ministry of Justice data (Source: MOJ civil justice statistics)

Conditional Fee Agreements take the risk out of making a claim

When you make a No Win, No Fee claim, you enter into a CFA with your solicitor. The agreement ensures you won’t pay upfront legal fees, and your solicitor only gets paid if your claim succeeds.

Ask how no win no fee works before you sign. What is the success fee, is it capped, do you need insurance, what if you lose etc. Get it in writing. Understanding your CFA avoids surprises and helps you keep more of your compensation.

John Kushnick

Legal Operations Director (NAL)

If your claim is successful

If you win, your solicitor will deduct a success fee from your compensation. This fee is capped by the Ministry of Justice (MOJ) at 25% of your total award.

If your claim is not successful

If you lose your claim, you do not pay your solicitor’s legal fees under a CFA. You also do not pay for the ATE insurance policy that protects against costs like medical reports and the defendant’s fees.

After the Event Insurance (ATE)

ATE Insurance is taken out at the start of your claim to cover costs if you lose. If your claim is successful, the cost of the ATE policy is deducted from your compensation. If unsuccessful, you pay nothing.

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So I could lose 25% of my compensation under a CFA?

Not exactly. The Jackson Reforms introduced in 2013 increased general damages for Pain, Suffering and Loss of Amenity (PSLA) by 10% for CFA-funded claims. This uplift is intended to offset the success fee deduction.

Worked example

General damages compensation award £20,000
10% uplift + £2,000
Total damages £22,000
25% solicitor success fee - £5,500
Compensation received by claimant £16,500

If you funded the claim privately, you could face much higher costs and potentially pay both sides’ legal fees if you lost.

Do CFAs vary between solicitors?

Yes. Although solicitors are regulated, the fine print of each CFA can differ. You should always read the terms carefully and ask about any clauses that may result in fees if:

  • You refuse an offer your solicitor advises you to accept.
  • You settle against their advice.
  • You stop cooperating with your solicitor.
  • The defendant cannot pay your costs even if ordered to.

Can I get out of a CFA?

Yes. Under the Consumer Contracts Regulations 2013, you have a 14-day cooling-off period to cancel a CFA without giving a reason. However, if you agree for your solicitor to start work immediately and then cancel, you may have to pay for work carried out during those 14 days.

Have you been injured at work?

If you have been injured at work in the last 3 years, you may be able to claim financial compensation.

Find out more about making a work accident claim:

  • Do you qualify?
  • How much compensation could you get?
  • How does No Win, No Fee work?

Read more: Work accident claim guide

One quick call can give you clarity and confidence about your options after a work accident. A specialist advisor will:

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  • Explain clearly how No Win, No Fee works
  • Connect you with the right solicitor for your case

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About the author

Chris Salmon is a legal commentator and co-founder of Quittance Legal Services. He has written extensively about workplace accidents, employment rights and the claims process. Chris's work has been cited in national media and he regularly contributes practical guidance to help injured workers understand their options.

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Last reviewed October 2025 by Chris Salmon