Mediation’s Rising Role in UK Civil Justice
In England and Wales, mediation is no longer viewed solely as a voluntary alternative to litigation – it has become a core expectation of modern civil justice. Following the Court of Appeal’s seminal Churchill v Merthyr Tydfil decision in 2023, courts can now order or stay proceedings for alternative dispute resolution (ADR) where appropriate and proportionate to encourage resolution without trial. This principle was built into the Civil Procedure Rules (CPR) with amendments that came into force in October 2024.
To accelerate this shift, the Ministry of Justice and His Majesty’s Courts & Tribunals Service (HMCTS) introduced an automatic referral to mediation pilot scheme for small money claims on 22 May 2024 – requiring most claims under £10,000 to take part in a free one-hour mediation session provided by the Small Claims Mediation Service (SCMS) before proceeding to a hearing.
The Current Challenge: Court Delays and Access to Justice Pressures
Backlogs in the County Court continue to strain access to justice. Recent Ministry of Justice Civil Justice Statistics show that civil county court claims can still take long periods to reach trial, particularly small claims. Independent analysis of Ministry of Justice statistics (including the latest Justice Committee reports) highlights persistent delays in case progression.
The Legal Framework: From Encouragement to ‘Mandatory’ Referral
1. CPR Changes Reflect Judicial Support for ADR
Amendments to the Civil Procedure Rules (CPR) explicitly embed encouragement of ADR and mediation within the overriding objective of dealing with cases justly and proportionately. The new rules also allow courts to order parties to engage in mediation or other ADR processes and to consider unreasonable refusal to mediate when awarding costs.
2. Small Claims Mediation Pilot (PD 51ZE)
Under Practice Direction 51ZE, which underpins the automatic referral to mediation pilot:
- All money claims normally allocated to the Small Claims Track (generally those under £10,000) must be referred to the Small Claims Mediation Service once directions questionnaires are filed.
- The pilot has been running from 22 May 2024 to 21 May 2026 and covers claims both from legacy systems and (following expansion on 5 November 2024 ) those issued via Online Civil Money Claims (OCMC).
- Failure to attend mediation can be considered by judges when making cost orders at hearing.
This scheme represents the most substantial form of compulsory ADR implemented in the civil courts to date.
Market Growth: The Mediation Landscape in 2025
The Centre for Effective Dispute Resolution’s (CEDR) 2025 Mediation Audit which is the UK mediation sector’s leading biennial benchmark reported approximately 21,000 civil and commercial mediation cases in the year to September 2024, representing a 24% increase on the previous audit period.
The audit also highlights strong settlement outcomes, with a high overall success rate (typically around 87% when including mediated agreements reached on the day or shortly after), indicating a robust and effective mediation market.
What This Means for Practitioners
1. ADR is Becoming Part of Core Case Strategy
Mediation is increasingly embedded in procedural practice and court expectations. Practitioners now need to build mediation software solution into case strategies early, not just as an option later in litigation.
2. Integrated Technology Becomes a Competitive Necessity
With case volumes and ADR referrals increasing, many firms still rely on fragmented workflows, leading to inefficiencies in client intake, document handling, compliance and reporting.
A unified mediation case management ecosystem – one that integrates case data, documents, calendars, billing, communications and ADR outcomes through RESTful APIs and secure interfaces – positions firms to:
- Automate repeatable processes such as MIAM (Mediation Information and Assessment Meeting) workflows, aligning with revisions to the CPR and court expectations.
- Maintain GDPR compliance and robust security through centralised access controls and encrypted storage.
- Eliminate data silos by connecting internal systems (billing, DMS, email, calendaring) via APIs.
Download the whitepaper “Building digital ecosystem for courts”:
The Strategic Next Move for UK Mediation Professionals
The UK legal sector stands at a pivotal moment. The integration of ADR is reshaping how disputes are resolved, making mediation an essential part of modern practice. At the same time, technological transformation, including integrated case management, automated workflows, and seamless data connectivity, is enhancing efficiency, consistency, and resilience. By adopting tools that align with judicial expectations while supporting client outcomes, mediation professionals can reduce administrative burden, focus on high-value legal expertise, and deliver faster, more effective resolutions.
