Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the impact that introducing legislation to reverse the effect of R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others [2023] UKSC 28 will have on the review into the opt-out collective actions regime.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
As announced on 17 December 2025, the Government intends to implement recommendations made by the Civil Justice Council to mitigate the effects of the PACCAR judgment, alongside proportionate regulation of litigation funding to improve transparency and fairness for all.
The review of opt-out collective actions is focused on finding the right balance between preserving an important route to redress for those harmed by anti-competitive behaviour and ensuring that the burden on business is proportionate. Work on litigation funding is distinct from the review, but will complement it and is expected to support the smooth operating of the regime.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether they have made an assessment of the risks to inward investment and perceived cost of doing business in the UK of facilitating an increase in funder-backed collective actions.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Funders enable access to justice when litigation costs are high. This is often the case for group litigation, including opt-out collective actions relating to competition issues. These claims play an important role in the competition enforcement landscape, and safeguarding competitive markets is to the benefit of consumers, businesses, and the UK economy.
However, litigation risk for businesses should be proportionate. Opt-out collective actions are under review, and a consultation on potential improvements will be published in due course. The Government is also working to implement proportionate regulation of litigation funding to improve transparency and fairness.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Ministry of Justice:
To ask His Majesty's Government what assessment they have made of the potential financial impact on publicly funded bodies of an increase in collective or mass claims as a result of introducing legislation to reverse the effect of R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others [2023] UKSC 28.
Answered by Baroness Levitt - Parliamentary Under-Secretary (Ministry of Justice)
The Government has not carried out a formal assessment of the economic impact of the UK Supreme Court’s judgment in PACCAR on businesses, publicly funded bodies, or stability of the litigation funding sector. There is also no official estimate on the cost of defending and settling increased volumes of funder-backed litigation against public bodies. However, the Civil Justice Council carried out a thorough and holistic review of litigation funding which the Government has welcomed and has been used to inform our policy development in this area. The Council’s full report can be found here and its interim report and public consultation can be found here. Alongside the public consultation, the Council established both a core Working Group and Consultation Group to ensure a wide range of perspectives informed the development of its recommendations.
As announced via Written Ministerial Statement on 17 December 2025, we intend to legislate to implement the Council’s recommendations to mitigate the effects of the PACCAR judgment and introduce proportionate regulation of Litigation Funding Agreements (LFAs) when parliamentary time allows. The legislation will restore the availability of LFAs as a source of funding by clarifying that they are not Damages Based Agreements, and ensure there is a regulatory regime that protects those signing up to LFAs.
The new regulatory framework will take a balanced and holistic approach, with appropriate consideration for financial impacts on public bodies, implications for businesses, and wider economic factors. These will complement the existing safeguards preventing speculative and disproportionate litigation, such as the power in Part 3 of the Civil Procedure Rules for the court to dismiss any claim with no reasonable grounds. There are no current plans to introduce further measures beyond those announced on 17 December 2025 until we have considered the Council’s remaining recommendations in more detail.
We recognise the critical role third-party litigation funding can play in access to justice and in the attractiveness of England and Wales as a jurisdiction to resolve disputes, as well as the need to ensure that it works fairly and proportionately for all involved. We will outline next steps in due course.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Ministry of Justice:
To ask His Majesty's Government what assessment they have made of the potential economic impact of introducing legislation to reverse the effect of R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others [2023] UKSC 28, including the impact on business confidence and investment in the UK.
Answered by Baroness Levitt - Parliamentary Under-Secretary (Ministry of Justice)
The Government has not carried out a formal assessment of the economic impact of the UK Supreme Court’s judgment in PACCAR on businesses, publicly funded bodies, or stability of the litigation funding sector. There is also no official estimate on the cost of defending and settling increased volumes of funder-backed litigation against public bodies. However, the Civil Justice Council carried out a thorough and holistic review of litigation funding which the Government has welcomed and has been used to inform our policy development in this area. The Council’s full report can be found here and its interim report and public consultation can be found here. Alongside the public consultation, the Council established both a core Working Group and Consultation Group to ensure a wide range of perspectives informed the development of its recommendations.
As announced via Written Ministerial Statement on 17 December 2025, we intend to legislate to implement the Council’s recommendations to mitigate the effects of the PACCAR judgment and introduce proportionate regulation of Litigation Funding Agreements (LFAs) when parliamentary time allows. The legislation will restore the availability of LFAs as a source of funding by clarifying that they are not Damages Based Agreements, and ensure there is a regulatory regime that protects those signing up to LFAs.
The new regulatory framework will take a balanced and holistic approach, with appropriate consideration for financial impacts on public bodies, implications for businesses, and wider economic factors. These will complement the existing safeguards preventing speculative and disproportionate litigation, such as the power in Part 3 of the Civil Procedure Rules for the court to dismiss any claim with no reasonable grounds. There are no current plans to introduce further measures beyond those announced on 17 December 2025 until we have considered the Council’s remaining recommendations in more detail.
We recognise the critical role third-party litigation funding can play in access to justice and in the attractiveness of England and Wales as a jurisdiction to resolve disputes, as well as the need to ensure that it works fairly and proportionately for all involved. We will outline next steps in due course.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Ministry of Justice:
To ask His Majesty's Government what assessment they have made of the financial stability of the litigation funding sector, and whether introducing legislation to reverse the effect of R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others [2023] UKSC 28 will increase systemic financial risk and volatility within that sector.
Answered by Baroness Levitt - Parliamentary Under-Secretary (Ministry of Justice)
The Government has not carried out a formal assessment of the economic impact of the UK Supreme Court’s judgment in PACCAR on businesses, publicly funded bodies, or stability of the litigation funding sector. There is also no official estimate on the cost of defending and settling increased volumes of funder-backed litigation against public bodies. However, the Civil Justice Council carried out a thorough and holistic review of litigation funding which the Government has welcomed and has been used to inform our policy development in this area. The Council’s full report can be found here and its interim report and public consultation can be found here. Alongside the public consultation, the Council established both a core Working Group and Consultation Group to ensure a wide range of perspectives informed the development of its recommendations.
As announced via Written Ministerial Statement on 17 December 2025, we intend to legislate to implement the Council’s recommendations to mitigate the effects of the PACCAR judgment and introduce proportionate regulation of Litigation Funding Agreements (LFAs) when parliamentary time allows. The legislation will restore the availability of LFAs as a source of funding by clarifying that they are not Damages Based Agreements, and ensure there is a regulatory regime that protects those signing up to LFAs.
The new regulatory framework will take a balanced and holistic approach, with appropriate consideration for financial impacts on public bodies, implications for businesses, and wider economic factors. These will complement the existing safeguards preventing speculative and disproportionate litigation, such as the power in Part 3 of the Civil Procedure Rules for the court to dismiss any claim with no reasonable grounds. There are no current plans to introduce further measures beyond those announced on 17 December 2025 until we have considered the Council’s remaining recommendations in more detail.
We recognise the critical role third-party litigation funding can play in access to justice and in the attractiveness of England and Wales as a jurisdiction to resolve disputes, as well as the need to ensure that it works fairly and proportionately for all involved. We will outline next steps in due course.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Ministry of Justice:
To ask His Majesty's Government what safeguards they plan to introduce alongside legislation to reverse the effect of R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others [2023] UKSC 28 to prevent speculative or disproportionate litigation that could negatively impact economic growth.
Answered by Baroness Levitt - Parliamentary Under-Secretary (Ministry of Justice)
The Government has not carried out a formal assessment of the economic impact of the UK Supreme Court’s judgment in PACCAR on businesses, publicly funded bodies, or stability of the litigation funding sector. There is also no official estimate on the cost of defending and settling increased volumes of funder-backed litigation against public bodies. However, the Civil Justice Council carried out a thorough and holistic review of litigation funding which the Government has welcomed and has been used to inform our policy development in this area. The Council’s full report can be found here and its interim report and public consultation can be found here. Alongside the public consultation, the Council established both a core Working Group and Consultation Group to ensure a wide range of perspectives informed the development of its recommendations.
As announced via Written Ministerial Statement on 17 December 2025, we intend to legislate to implement the Council’s recommendations to mitigate the effects of the PACCAR judgment and introduce proportionate regulation of Litigation Funding Agreements (LFAs) when parliamentary time allows. The legislation will restore the availability of LFAs as a source of funding by clarifying that they are not Damages Based Agreements, and ensure there is a regulatory regime that protects those signing up to LFAs.
The new regulatory framework will take a balanced and holistic approach, with appropriate consideration for financial impacts on public bodies, implications for businesses, and wider economic factors. These will complement the existing safeguards preventing speculative and disproportionate litigation, such as the power in Part 3 of the Civil Procedure Rules for the court to dismiss any claim with no reasonable grounds. There are no current plans to introduce further measures beyond those announced on 17 December 2025 until we have considered the Council’s remaining recommendations in more detail.
We recognise the critical role third-party litigation funding can play in access to justice and in the attractiveness of England and Wales as a jurisdiction to resolve disputes, as well as the need to ensure that it works fairly and proportionately for all involved. We will outline next steps in due course.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Ministry of Justice:
To ask His Majesty's Government what estimate they have made of the cost of defending and settling increased volumes of funder-backed litigation against public bodies.
Answered by Baroness Levitt - Parliamentary Under-Secretary (Ministry of Justice)
The Government has not carried out a formal assessment of the economic impact of the UK Supreme Court’s judgment in PACCAR on businesses, publicly funded bodies, or stability of the litigation funding sector. There is also no official estimate on the cost of defending and settling increased volumes of funder-backed litigation against public bodies. However, the Civil Justice Council carried out a thorough and holistic review of litigation funding which the Government has welcomed and has been used to inform our policy development in this area. The Council’s full report can be found here and its interim report and public consultation can be found here. Alongside the public consultation, the Council established both a core Working Group and Consultation Group to ensure a wide range of perspectives informed the development of its recommendations.
As announced via Written Ministerial Statement on 17 December 2025, we intend to legislate to implement the Council’s recommendations to mitigate the effects of the PACCAR judgment and introduce proportionate regulation of Litigation Funding Agreements (LFAs) when parliamentary time allows. The legislation will restore the availability of LFAs as a source of funding by clarifying that they are not Damages Based Agreements, and ensure there is a regulatory regime that protects those signing up to LFAs.
The new regulatory framework will take a balanced and holistic approach, with appropriate consideration for financial impacts on public bodies, implications for businesses, and wider economic factors. These will complement the existing safeguards preventing speculative and disproportionate litigation, such as the power in Part 3 of the Civil Procedure Rules for the court to dismiss any claim with no reasonable grounds. There are no current plans to introduce further measures beyond those announced on 17 December 2025 until we have considered the Council’s remaining recommendations in more detail.
We recognise the critical role third-party litigation funding can play in access to justice and in the attractiveness of England and Wales as a jurisdiction to resolve disputes, as well as the need to ensure that it works fairly and proportionately for all involved. We will outline next steps in due course.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask His Majesty's Government what assessment they have made of the level of gearing in water and sewerage companies; how they calculate gearing for the purpose of any official or internal statistics on the insolvency risk of water and sewerage companies; and whether they use equity or assets as a denominator when making any calculation o gearing.
Answered by Baroness Hayman of Ullock - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The gearing of water companies is reported by Ofwat in its annual Monitoring Financial Resilience Report. Ofwat requires companies to report gearing as net debt divided by Regulatory Capital Value.
Water companies are allowed to raise debt to fund the delivery of their services; this is normal practice across all parts of the private sector. At sensible levels, debt can be an appropriate way to fund investment for essential infrastructure over the longer term. However, we recognise some companies will need to take further steps to strengthen their financial resilience.
The Independent Water Commission has made recommendations around the financial resilience of companies. The Government’s full response to the Commission’s recommendations - including those around financial resilience - will be outlined later this year through a White Paper. The proposed reforms will then form the basis of a new water bill to modernise the entire system so that it is fit for decades to come.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Cabinet Office:
To ask His Majesty's Government how many intellectual property licences the Crown Commercial Service holds under contracts or terms of reference for (1) grants, (2) pre-procurement or proof of concept work, and (3) procurement; how many of those have sub-licensing rights; how many of those have resulted in sub-licensing; and how many of those sub-licences are for patents, and for which countries.
Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)
The Crown Commercial Service holds no intellectual property licences under the specified categories.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Ministry of Justice:
To ask His Majesty's Government how many intellectual property licences the Ministry of Justice holds under contracts or terms of reference for (1) grants, (2) pre-procurement or proof of concept work, and (3) procurement; how many of those have sub-licensing rights; how many of those have resulted in sub-licensing; and how many of those sub-licences are for patents, and for which countries.
Answered by Lord Ponsonby of Shulbrede
The information requested could only be obtained at disproportionate cost.