From April 2013 the limit for a Small Claim has been increased from £5,000 to £10,000
Landlords, letting agents and businesses in general often have reason to resort to the Small Claims Court for smaller debts.
A £5,000 limit was beginning to be restrictive for some claims, so the increased limit is a welcome development.
This Small Claims system has several advantages in that the process can be handled by the lay person – the litigant in person (LIP). You may seek the services of a solicitor to help you put your case together, but often this is not necessary, so you can save a considerable amount of money on legal costs.
If you DIY, all that’s involved is the court fee and your time, though you do need to develop some knowledge of the process.
Until recently the financial limit for the small claims track was £5,000 though in some circumstances lower limits apply to personal injury claims and housing disrepair claims.
In February 2012, following a consultation, the Government decided to increase the general small claims track limit, initially to £10,000 with the aim to further increase it to £15,000 in the future after full evaluation of the increase to £10,000.
The general small claims track threshold has increased to £10,000 from April 2013.
Although in its February 2012 consultation the Government had said there would be no change to the current limit for personal injury and housing disrepair claims, in December 2012 the Ministry of Justice opened a consultation on proposals to increase the limit for road traffic accident personal injury (RTA PI) small claims to £5,000.
Also in February 2012, following a separate consultation, the Government decided to increase the financial limit of the low value RTA PI scheme which currently deals with claims valued at between £1,000 and £10,000 to £25,000 and introduce similar schemes for other kinds of claims following further consultation.
Anyone considering a legal claim in England & wales can start the process off through the government website: Money Claim Online
More information here on using the small claims court.