British BulletinBritish Bulletin
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Lifestyle
  • Health
  • Sports
  • Tech & Science
  • Travel
  • Spotlight
  • More
    • Press Release
What's On

King Charles meets Syrian President al-Sharaa in London

2 April 2026

Yorkshire Building Society launches cash ISA offering ‘competitive return’ ahead of tax free allowance cut

2 April 2026

BBC confirms Scott Mills’ replacement on upcoming Race Across the World series following axe

2 April 2026

Rhian Wilkinson: Wales boss condemns Wrexham v Cardiff City social media abuse

2 April 2026

Fraudster rogue trader swindled £10k out of victims for ‘entirely worthless’ work

2 April 2026
Facebook X (Twitter) Instagram
Web Stories
Facebook X (Twitter) Instagram
British Bulletin
Subscribe
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Lifestyle
  • Health
  • Sports
  • Tech & Science
  • Travel
  • Spotlight
  • More
    • Press Release
British BulletinBritish Bulletin
Home » Economy faces £18bn hit as Britons wait years for BILLIONS in class action compensation from lawyers
Business

Economy faces £18bn hit as Britons wait years for BILLIONS in class action compensation from lawyers

By britishbulletin.com1 March 20263 Mins Read
Economy faces £18bn hit as Britons wait years for BILLIONS in class action compensation from lawyers
Share
Facebook Twitter LinkedIn Pinterest Email

The UK economy faces an £18billion hit in a blow to businesses as more than £160billion worth of class action claims continue to make their way through Britain’s legal system,.

A growing number of consumers involved in those cases say they are still waiting years for compensation that may never arrive and are taking to social media to complain.


The UK’s group litigation industry has expanded rapidly over the past decade, offering ordinary consumers the chance to collectively challenge major corporations over data breaches, product failures and alleged misconduct.

Yet while the headline figures attached to these lawsuits continue to climb, many claimants argue the personal financial benefit has been far less clear.

The economy faces an £18billion hit due to the rise in class action lawsuit

|

GETTY

A report published by the Institute for Economic Affairs (IEA) last year warned the boom in class actions could ultimately cost the UK economy up to £18billion while delivering limited returns to individuals once legal fees and litigation funding costs are deducted.

Critics say the structure of many claims means lawyers and funders can secure substantial payouts even when compensation reaching consumers is relatively small.

Analysis by GB News of hundreds of publicly available Trustpilot reviews across five of Britain’s most active class action firms, including Thompsons Scotland, KP Law, Your Lawyers, Barings Law and Pogust Goodhead, reveals mounting frustration among claimants over delays, communication issues and uncertainty surrounding outcomes.

Thompsons Scotland, which is pursuing cases linked to incidents including the M&S cyberattack, Arnold Clark, Capita and easyJet, holds a Trustpilot rating of 3.8.

Consumers are taking law firm complaints online

|

TRUST PILOT / CT GROUP

Consumers are looking for compensation following the M&S cyber attack

| MARKS & SPENCER

Several reviewers described long waiting periods for responses, while others said they were asked to gather extensive evidence only to later be told their cases would not proceed. One claimant said the experience left them feeling like “just a number”.

KP Law, involved in actions concerning companies such as the Co-op, Southern Water and Paddy Power, operates within the wider Legatus Holdings structure, which also includes litigation funding and insurance arms.

Reviews suggest some consumers were frequently contacted after initial enquiries but later struggled to obtain updates once their claims were underway.

Your Lawyers, previously involved in British Airways and Virgin Media data breach litigation and currently handling Volkswagen emissions claims, holds a Trustpilot score of 2.2.

Conservative MP Andrew Griffith has issued a warning over this issue

| GB News

Some reviewers said they signed up under “no win, no fee” arrangements but later faced insurance-related payment requests years into proceedings, raising concerns about transparency for claimants. The consumer impact of large-scale litigation has begun attracting political attention.

Conservative MP Andrew Griffith has been among the most vocal opponents of the trend, stating: “Lawyers and funders profit while businesses shrink back and innovation stalls. That’s the real cost of their ‘justice campaigns’ – not just compensation, but a hit on growth, lost jobs, and a weaker Britain.”

Labour MP Oliver Ryan has raised concerns in Parliament too, noting that in the Post Office class action claimants recovered only a fraction of the settlement, with around 80 per cent of the damages reportedly going to lawyers and funders.

Globally, collective legal action continues to expand. In the United States, the ten largest class-action settlements in 2025 were valued at nearly $80billion combined, representing the highest total on record.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Keep Reading

Yorkshire Building Society launches cash ISA offering ‘competitive return’ ahead of tax free allowance cut

‘Mansion tax’ to hit 165,000 homeowners, OBR says

GB News star slaps down Labour minister over Rachel Reeves bludgeoning small business

State pension triple lock pledge from Reform slammed as ‘hugely disappointing’

Award-winning British alcohol brand sold in Tesco goes bust with £195,000 debt

NS&I Premium Bonds prize checker confirms April 2026 winners but 62% of savers win nothing: ‘Luck of the draw!’

Child Benefit boost for millions as parents in line for £1,406 a year windfall from HMRC

Reform to support state pension triple lock despite ‘long-term sustainability’ concerns

Energy bills drop 7% from today under Ofgem price cap change

Editors Picks

Yorkshire Building Society launches cash ISA offering ‘competitive return’ ahead of tax free allowance cut

2 April 2026

BBC confirms Scott Mills’ replacement on upcoming Race Across the World series following axe

2 April 2026

Rhian Wilkinson: Wales boss condemns Wrexham v Cardiff City social media abuse

2 April 2026

Fraudster rogue trader swindled £10k out of victims for ‘entirely worthless’ work

2 April 2026

Subscribe to News

Get the latest Brittan News and Updates directly to your inbox.

Latest News

Kemi Badenoch calls on Donald Trump to reveal plan to reopen Strait of Hormuz

2 April 2026

Workers rush to remove ‘Not Our King’ graffiti before monarch and Queen Camilla arrive at royal event

2 April 2026

‘Mansion tax’ to hit 165,000 homeowners, OBR says

2 April 2026
Facebook X (Twitter) Pinterest TikTok Instagram
© 2026 British Bulletin. All Rights Reserved.
  • Privacy Policy
  • Terms
  • Advertise
  • Contact

Type above and press Enter to search. Press Esc to cancel.