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

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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

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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.

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