In a bid to reduce the increasing demand for court time, the Ministry of Justice has recently confirmed the introduction of mandatory mediation.

For court cases filed from 22nd May 2024 attending a mediation session will become a compulsory step in resolving a money dispute under £10,000.00.

Since 2007, parties claiming less than £10,000.00 have been able to choose to take part in a mediation session, however this will soon become a mandatory requirement.

Mediation will involve a free one-hour telephone appointment and if an agreement cannot be reached then the case will continue to go before a judge.

It will apply to all small claims issued under the Part 7 procedure, but not to claims which are issued under non-standard procedures, such as possession claims.

This new policy is part of the government’s plan to increase the use of dispute resolution to resolve claims quickly and without the need to pay a hearing fee.

With it being reported by the Ministry of Justice that for the last quarter of 2023, it took an average of 55.8 weeks between a small claim being issued and the claim going to trial, a reduction in around 5,000 sitting days for the court each year is expected.

It is hoped that the introduction of compulsory mediation will increase the number of disputes that are settled at an early stage, saving costs and freeing up the court’s time and resources