Class actions surge in UK, but public sees lawyers as main winners
Public awareness of class actions in the UK has reached the highest level since 2020, with the majority of the public believing they make money for law firms and litigation funders.
A new report by Portland, shared exclusively with Morning Wire, found that public awareness of class actions in the UK has reached 27 per cent, but this awareness remains low. The high awareness is particularly strong among younger age groups, with over 50 per cent among the 25-34 year-old group.
A portion of the public (65 per cent) said they would sign up to a class action if given the chance.
The primary motivation for joining a class action for those keen was the belief that the company committed a wrong or illegal act, which outweighed the possibility of compensation.
And the sector people would most support class actions against was healthcare, with over half of those respondents listing it as their number one, followed by finance, and energy.
“Shareholders are supportive of legal action against misleading or harmful corporate practices; consumers are more willing to join class actions and are motivated for reasons other than money; and the public believes legal action is an effective way to hold companies accountable for greenwashing,” Simon Pugh, partner at Portland.
Sceptical on who really wins
The total value of cases in the UK had surpassed €155bn (£135bn) in 2024.
Despite increased awareness of class actions, nearly 70 per cent of the public believes class actions mostly benefit law firms and litigation funders.
These figures come amid scepticism about who really benefits from class actions. Earlier this year, the outcome of the Merricks v Mastercard case made headlines when a claim on behalf of 46m consumers, once valued at up to £14bn, eventually settled for £200m. Those eligible to claim would receive between £45 and £70 each, after nearly 10 years at court.
The Portland report highlighted that the public is keen for greater transparency, with almost two-thirds (65 per cent) agreeing that class representatives should publicly disclose the identity of their funder to the courts.
This comes as more than half trust a case funded by a law firm than one funded by a litigation funder.
The litigation funding sector is currently under the spotlight following a report by the Civil Justice Council, published earlier this year, which included several key recommendations, including a light-touch regulatory framework for the sector.
The government’s Department for Business and Trade (DBT) is currently conducting a separate review into the use of litigation funding.