Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential (i) merits of requiring established consumer arbitration schemes to be (a) free and (b) subject only to nominal consumer fees and potential (ii) of that on frivolous and vexatious claims, case volumes, scheme sustainability, business costs and prices.

The intention of the fee structure is to ensure fees are set at levels commensurate, over a reasonable course of time, with the costs of CTSI performing the relevant ADR functions to the standard required, that these are predictable for ADR providers and provide cost recovery for CTSI.

CTSI do not have discretion to deviate from the fees set in the Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Fees) Regulations 2026. The current fees reflect that rates have not risen since 2015 and have been significantly eroded given the impact of rising costs since then.

The ADR framework under the Digital Markets, Competition and Consumers Act 2024 allows for ADR providers to charge fees to consumers for ADR services, subject to these being agreed by CTSI as proportionate. ADR providers continue to be able to refuse to take cases that they deem frivolous or vexatious.

The Department recognises there will be a period of adjustment as the new fee structure beds in and will conduct a review in the autumn to assess whether the fee structure should be further amended to ensure charges are fair and proportional for all ADR providers.