England: Mediation to be compulsory for civil claims up to £10,000

This could include claims such as a homeowner suing their builder for failure to deliver a service as promised or businesses recovering debts from a customer.

Over 180,000 parties will be referred automatically to a free hour-long telephone session with a professional mediator provided by HM Courts and Tribunals Service (HMCTS) before their case can be progressed to a hearing.

It is estimated that greater use of mediation could positively impact up to 92,000 cases per year. This could free up to 5,000 sitting days a year, providing a substantial boost to court capacity and helping the government to reduce waiting time for the most complex cases.

Changes will also provide parties with the opportunity to resolve disputes out of court, reducing costs and removing some of the unnecessary stress court cases can bring.

To support these changes coming into effect, HMCTS will be expanding the Small Claims Mediation Service (SCMS) by recruiting and training additional mediators and updating necessary technology. The SCMS has been providing voluntary mediation since 2007, settling over half of claims referred to it each year within weeks of starting the case.

Justice minister Lord Bellamy KC said: “A vast number of cases that go through the civil courts each year could be settled far more swiftly and with less stress through mediation.

“By integrating mediation for small civil claims we will create valuable court capacity, freeing up time for judges and reducing pressures on the courts.”