As we approach the four-year anniversary of the Damages Claims Portal (DCP) pilot, significant developments and challenges continue to unfold, raising important questions for those using the system. While the DCP has made progress, recent updates from HMCTS have highlighted ongoing issues and a lack of sufficient funding to fully develop the system to meet its intended end-to-end functionality. This client alert provides a detailed update on the current status of the DCP, the latest developments, and the challenges faced by users.
The DCP pilot scheme was first launched on 28 May 2021, initially on a voluntary basis, and was subsequently mandated for claimants in April 2022 and defendants in June 2022. Despite this extended timeline, the system is still not complete, with key aspects of its development yet to be realised. One of the key issues facing the DCP is the lack of funding for continued development, which has now led to a pause in its evolution.
In a recent call with the HMCTS, we were informed that no further development of the system would take place until additional funding is secured. HMCTS has made a request for further budget allocation to the government, but at time of writing, this request is still pending. This lack of financial commitment stands in stark contrast to the broader government and judiciary objectives of using digital systems to help alleviate the court system’s large backlog and improve efficiency.
The DCP has expanded its scope to include intermediate and multi-track claims from 27 February 2025. This marks a significant shift from the original fast-track only system. While this expansion reflects the system’s growing utility, it also raises questions about whether smaller firms are adequately prepared to adapt to the new processes. For many of our insurer clients, it remains ‘business as usual’, but the move to include higher-value claims brings its own set of challenges.
While it is clear that the system is evolving, feedback from users indicates that the process is still far from seamless. For example, hearing notices and direction orders continue to be problematic, with many containing inaccuracies such as incorrect lists of witnesses or requiring medical experts to attend trials unnecessarily. These errors are largely due to human mistakes rather than systemic flaws, leading to increased costs as law firms work to identify and rectify them. As one colleague noted, once the Directions Questionnaire stage is completed, the process tends to ‘wobble’, as the system struggles with human errors and inconsistencies in the Practice Directions (PDs).
One of the most critical issues is that while the DCP has enabled the completion of the litigated process – allowing claims to be issued and judgments to be reached – it is still far from a fully developed end-to-end system. Initially, the DCP was conceived as a platform that would take claims from pre-litigation all the way to enforcement. However, at present, it is only for the litigated part of the process and concludes at judgment, with no path to enforcement. There have been repeated allusions to further development, including API integrations and A2A communications, but the lack of a dedicated budget means that these capabilities are not currently under development, leaving a significant gap in functionality.
This shortcoming is particularly frustrating given the government’s stated aim to reduce the burden on the courts and eliminate friction within the system. While there have been discussions with the MoJ, Judiciary and Justice Committee about reducing the court backlog and expanding the use of digital portals, the continued lack of funding means that progress is stunted, and the benefits of a fully operational digital system remain out of reach.
A growing concern among users, particularly smaller firms, is that the lack of clarity around updated Practice Directions (PDs) and the continued delays in mandating small claims processes are creating uncertainty. The OCMC system for small claims, which has always been live for voluntary use, is expected to be mandated in the very near future, but no specific date has been communicated. The uncertainty surrounding this mandate, along with the expectation of significant volumes of claims following mandating, raises questions about whether the system will be able to cope with the pressure.
In the meantime, law firms are left navigating the various quirks of the system, including duplicate work across case management systems. Most law firms are required to input data into their own systems to generate client information and updates, which leads to additional costs and inefficiencies. The lack of seamless integration between the DCP and these other systems is a major sticking point, and until further development occurs, it is expected that this will continue to be a burden for users.
There is a growing consensus among legal professionals and insurers that the DCP is an important step forward for the industry, but that it is far from complete. The current lack of budget for further development risks undermining the system’s potential to alleviate the pressure on courts and improve efficiency in handling claims. While the system is usable, it remains a ‘lumpy’ journey with many unresolved issues. A fully functional, end-to-end system would go a long way toward streamlining the process and reducing costs, but this will require a significant investment of resources.
As we continue to monitor the progress of the DCP and advocate for improvements, we also urge clients to ensure they are preparing for the upcoming changes by nominating their panel law firms early and ensuring they are familiar with the current system’s quirks. With upcoming changes to the Practice Directions and the mandating of small claims, there will likely be further disruptions and growing pains, but the ultimate goal remains a more efficient, tech-enabled claims process.
As the DCP continues its development, we find ourselves at a crossroads. The system has shown promise, but its full potential cannot be realised without the necessary resources to continue its evolution. The lack of funding for this essential project is at odds with the government’s broader goals for digital transformation within the judiciary and the court system. We will continue to push for the necessary investment and support to make the DCP a fully functional, end-to-end system. In the meantime, we encourage all clients to stay informed of the latest updates and prepare for the changes ahead.
We will keep you updated as the situation evolves. Should you have any questions or need further assistance, please do not hesitate to contact us.
Contact:
Gavin Miller - gmiller@keoghs.co.uk
Matthew Christopher - mchristopher@keoghs.co.uk
Natalie Larnder - nlarnder@keoghs.co.uk
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