WELCOME!
Welcome to Wright Hassall’s Winter Newsletter.
In this edition we bring together some of our news from last few months and share some of our successes and highlights from the Autumn/Winter season. It’s been a period of tremendous activity so I will only be able to sh a small selection here.
Since I last wrote in our Summer Newsletter we have se some incredibly positive developments with our people in our service offering.
Our second ‘End Workplace Bullying Day’ took place in Octo an initiative established by our Employment team back in 20
This is a day when we encourage HR teams and employers to look closely at their workplaces and how they can protect and support employees and, as part of the campaign, we asked workplaces to join the conversation and make time in their diaries for anti-bullying training and to take meetings based on any bullying claims This campaign has been a huge success to date and I for one am looking forward to the third iteration later this year.
In early November, I was very proud to see Katie Alsop from our Contentious Probate team named as “Lawyer of the Year” at the Warwickshire Law Society At the same event, Parminder Takhar (Commercial Litigation) and Rebecca Mushing (Head of Planning) were well deserved Runners Up.
We have completed some upgrades to our teams, with the launch of an exciting new Commercial team, led by the very experienced Ann Critchell-Ward, together with the launch of our new Residential Property team. A couple of our teams also saw changes with Freya Summers being appointed as the Head of our Corporate team and we welcomed Karen Brennan who joined us in January as the new Head of our Family Law team.
At the end of the year, we celebrated a series of internal promotions across several teams and were proud to see two of our trainees qualify into our legal teams after completing their training contracts with us. It is fantastic to see our team progress their careers with us and for them to be rewarded for their hard work, dedication and client excellence Seeing our team thrive really is something that gives me an immense sense of pride
December also brought great news as we were accredited as a ‘Great Place to Work’ - an employerof-choice certification based entirely on employee feedback. This recognition (on our first attempt!) is a true testament to the collaborative and supportive culture we’ve worked hard to cultivate. I, and the whole team, was thrilled with this success, and we are excited to continue building on this as we seek re-accreditation later this year
Once again, we achieved success for our excellence in both Chambers UK and The Legal 500, both of which recognise the top legal firms and lawyers. This recognition is a direct result of the outstanding work being carried out by our legal teams and is backed up by client testimonials I am incredibly proud of all those involved.
During the season, we held a lot of in person events at our offices and in the local area These events covered a number of different areas including Employment, Agriculture, Construction, Dispute Resolution and Real Estate These were all well attended by clients and contacts who heard sector news from industry professionals and also got important legal updates from our team I hope you were able to make it to one of these events, but if not, don’t worry, as based on the success of the Autumn/Winter events, we will hold similar events in the coming months, and will share information in due course.
There is so much more to share with you on everything above as well as other news from across Wright Hassall, please read on as there are a range of articles from our legal teams which have been chosen for their broad interest - I certainly hope you find them informative and engaging
PHIL WILDING Managing Partner
NEW HEAD OF FAMILY LAW
We are delighted to announce a senior appointment who brings more than 20 years of experience to the business
We have welcomed Karen Brennan as a Partner and new Head of Family.
She joins Wright Hassall after leading the family team at a Birmingham-based legal firm and is now keen to grow the team at the Leamington Spa based business
“I am a calm, personable and empathetic individual, with the technical and strategic expertise to get matters resolved where required, which is incredibly important in family law.”
Wright Hassall’s Family Team offers legal support in several areas including divorce, matrimonial finance, family matters concerning children, prenuptial and postnuptial agreements, cohabitation agreements, civil partnership issues and protecting those experiencing domestic abuse.
Phil Wilding, Managing Partner at Wright Hassall, added: “I am delighted to welcome Karen as our new Head of Family.
“She has exactly the right expertise and attitude to lead the team, and is also highly ambitious I look forward to working with her as she builds the team.”
If you would like to speak to Karen or find out more about future positions available within WH’s Family team, contact Karen.Brennan@wrighthassall.co.uk or call 01926 886688.
Image caption: Phil Wilding (Managing Partner) and Karen Brennan (Head of Family)
UK EMPLOYER NATIONAL INSURANCE INCREASE: WHAT IT MEANS FOR EMPLOYERS AND HOW TO MITIGATE RISING COSTS
In the wake of rising operational costs, businesses across the UK are feeling the pressure. A major contributor to this financial strain is the recently announced increase in employer National Insurance (NI) contributions, which comes into effect from April 2025. Many employers are now facing tough decisions, including whether they may need to consider a reduction in their workforce as a means of mitigating the added expense.
The National Insurance Increase: A Burden on Employers
From 6th April 2025, the UK Government are reducing the per-employee threshold at which employers become liable to pay NI (the Secondary Threshold) from £9,100 to £5,000 per year. Alongside this, they have announced an increase to the rate of employer Class 1 NI contribution rates from 13 8% to 15 0% This means businesses will essentially be paying more for each employee, with no immediate reprieve in sight. Serious consideration will, therefore, need to be given by many employers as to how to best deal with the additional financial burdens they could be facing
Redundancies as a Reaction to Rising Costs
In response to these increases, many businesses are considering potential redundancies to reduce their overall wage costings. It might seem like an obvious
solution, but it’s important to recognise that redundancies come with their own set of costs and challenges. We have highlighted a few of the key considerations below:
Redundancy Pay
Employers are legally required to provide statutory redundancy pay to employees who meet the eligibility criteria: they are an employee of the employer; they have at least two years of continuous service with the employer; and they have been dismissed by reason of redundancy (or temporarily laid off or put on short time working, in certain situations) The rate of statutory redundancy pay is based (subject to any caps) on an employee’s age, length of employment and weekly pay.
Legal and Consultation Costs
If an organisation is considering making any redundancies, they are required to follow legal processes, including consulting with affected employees (or potentially employee representatives or trade unions in cases of collective consultation duties arising). Obtaining legal advice on such a process is important to ensure the right steps are followed and the process is lawful, however, this of course has costs associated with it. In addition, there is often a lot of management time involved in undertaking the process.
Loss of Talent and Expertise
Redundancies can result in the loss of experienced and skilled employees, which can disrupt operations and erode organisational knowledge Rehiring or training new staff is costly and timeconsuming.
Impact on Morale
Redundancies can have a ripple effect on the remaining workforce, leading to uncertainty, reduced productivity, and a negative impact on company culture. Given these challenges, redundancies should not be the first or only option Instead, businesses should explore other strategies to reduce their financial burden while preserving their workforce and the company’s sustainability.
Alternatives to Compulsory Redundancies: Cost-Saving Exercises for Employers
Fortunately, there are several alternatives to compulsory redundancies that can help companies manage the increase in employer NI costs and other rising expenses (alternatives which employers have a duty to consider both before and throughout any redundancy process):
Flexible Working Arrangements
Allowing employees to work flexibly or remotely can lead to cost savings in several ways, reducing the need for office space, utilities, and other facilities. Moreover, flexible working can increase employee satisfaction and productivity Employers can also consider offering job sharing or reduced hours.
Salary Adjustments and Pay Freezes
Some businesses may look at freezing salaries or reducing pay increases to offset rising overheads. In some cases, temporary salary adjustments or delaying raises can be a way to manage costs without resorting to redundancies Employers should ensure that such measures are fair and, where appropriate, consented to in advance and temporary.
Reducing Non-Essential Spending
Reviewing the company’s budget and cutting back on non-essential expenditure can also make a significant difference. This might involve reducing discretionary spending
on areas like marketing, travel, office supplies, or outsourcing. By focusing on the essentials, companies can free up funds to absorb the added NI costs.
Job Reshuffling and Role Re-Design
Rather than cutting jobs, businesses can consider reshuffling roles or re-designing job functions to align with changing business needs This may involve crosstraining employees to perform multiple roles.
Reviewing Benefits and Bonuses
Re-evaluating employee benefits, bonuses, and perks can also help cut costs. For instance, employers may (subject to staff consent) consider temporarily reducing their employer pension contributions to the statutory rate
Voluntary Redundancies or Early Retirement
If redundancies are necessary, offering voluntary packages can be a more compassionate and cost-effective solution. Employees who are considering retirement or looking for new opportunities may be willing to leave the company on their own terms, without the need for a formal redundancy process
Conclusion: A Balanced Approach To Rising Costs
The upcoming increase in employer’s NI contributions is a challenge that many businesses, particularly SMEs, will need to navigate in the months ahead. Whilst redundancies may seem like the easiest way to address rising costs, this is not the only solution, and nor should it be considered as such It is important that alternative cost-saving measures (such as those listed above) are properly explored and, in the event of the redundancies still potentially being required, a fair and lawful redundancy procedure being followed
Should you want any advice, please do get in touch with Wright Hassall’s Employment Law team who can discuss upcoming changes and assist you to prepare.
This article was written by Tina Chander,
Partner and Head of Employment Law
WRIGHT HASSALL UPDATES
GREAT PLACE TO WORK ACCREDITED
In November last year, we announced that we received international accreditation for our exemplary workplace culture, being certified as a ‘Great Place To Work.’
Great Place To Work is an ‘employer-of-choice’ certification that recognises companies with outstanding workplace environments, based entirely on feedback from current employees.
Wright Hassall launched an internal anonymous employee engagement survey in 2022 as part of our vision to become an exceptional place to work. Conducted every six months, the survey helped drive improvements in workplace satisfaction. We then chose to benchmark against external organisations to achieve independent accreditation from Great Place To Work
REGENCY RUN 2025
We are once again sponsoring the Wright Hassall Regency 10k Run which will return on Sunday, April 6
It has raised more than £500,000 for charities, community groups, PTAs, clubs and local initiatives since being launched in 2004.
Phil Wilding, Managing Partner of Wright Hassall, said:
“We are extremely pleased to be sponsoring the run once again in 2025
“We have supported the run every year since it was launched, and it is a much-loved event right across the community which attracts hundreds of runners and spectators, creating a fantastic atmosphere right across the town.”
WILL ENGLISH DEVOLUTION SPEED UP
THE DELIVERY OF NEW HOMES?
The government is hoping to turbo-charge its growth agenda by ‘the biggest transfer of power out of Westminster to England’s regions this century.’ This ‘devolution revolution’, using mayoral devolution as its blueprint, is laid out in the government’s white paper, which explains how the Mayors’ use of ‘their mandate… to tackle the obstacles to growth that need a regional approach’ should be rolled out to ‘devolution deserts.’
The government is convinced that devolution will help to resolve one of the main sources of tension between central and local government, namely Labour’s undertaking to deliver 1.5m new homes by the end of its term, a key component of its growth agenda. Of immediate local interest is the government’s invitation to eligible twotier areas (county council / district councils) to apply to become a unitary authority Warwickshire’s application to be part of this first tranche was unsuccessful this time. Those that are successful will be required to develop a Spatial Development Strategy, demonstrating how it will work within the newly merged strategic authority to unlock growth in the county including how and where these houses will be built.
Taking a page from the Mayoral playbook
The government believes that devolution can overcome ‘political horse trading’ which, in many parts of the country, has acted as a brake on creating ‘a unified transport strategy, getting houses built, or putting in the necessary infrastructure to boost economic growth ’ Although the current mayoral strategic authorities (with Birmingham and Manchester, and Liverpool being the most high-profile) are being held up as examples of how to overcome blocking tactics, they are not immune to local challenges and opposition
Indeed, the High Court has given permission to a local campaign group, 'Save Greater Manchester's Green Belt' to challenge Mayor Andy Burnham’s 'Places for Everyone' development plan 2024, agreed by nine Greater Manchester authorities. The plan sets out how the boroughs should develop up until 2039, with bold ambitions to improve employment opportunities, build the right homes in the right places, rejuvenate green spaces and reshape town centres. The permitted ground of challenge alleges procedural unfairness in the way that green belt additions were reduced from 49 sites to 19 in the plan. While the plan seeks to build upon the devolution successes achieved in the region thus far, legal challenges such as this highlight that local plans (or parts) created under a mayoral system can ultimately be quashed. We will await the outcome of the substantive hearing.
The challenge for local planning
Although devolution in the form of unitary authorities is supposed to work because ‘they have skin in the game and are accountable to their citizens’, as we pointed out in a recent article in Property Week, many councils are struggling financially - with some already bankrupt - and have already failed to implement local plans that have been around for almost a decade. Expecting underfunded and understaffed planning departments to get to grips with implementing a Spatial Growth Strategy designed to be delivered across different authorities, which may not be politically aligned, is optimistic at best
In a local example, a joint statement by four out of five district councils in Warwickshire expressed their concerns with becoming a unitary authority, citing the ‘haste’ with which the council is pursuing this course of action.
According to a BBC report, Warwickshire has been earmarked by the government to provide 20% more housing per year than it has currently delivered. By September 2024, only Rugby District Council had approved more planning applications (78%) against the national benchmark of 72%; Warwick District had approved 70%; and Stratford-on-Avon District, 66% Angela Rayner has committed to ‘knocking heads’ together in areas where local authorities cannot agree on mergers –which rather suggests that local decision making may take a back seat if it goes against central government objectives. So, the question remains: how will devolution overcome blocking tactics of local interests, lack of financial resources, and a dysfunctional, underfunded planning system?
Will devolution unblock the housing pipeline?
There are certainly no guarantees. The Institute of Fiscal Studies (IFS) warns that devolution will not solve the problems caused by the current opaque funding allocation system, originally introduced by the last Labour government Counterintuitively, those areas with the highest need have received the least funding with population growth not being factored into the arithmetic. Attempts to reform funding have been kicked into the long grass, so local authority funding remains arbitrary and short-term
Devolution may be the route to efficiency savings and a more streamlined service delivery, however, according to the IFS, if funding is not properly allocated, councils won’t be able to take on the responsibilities asked of them.
This devolution agenda has both supporters and detractors. The latter believe that devolution will actually result in decisions being made further away from the communities which they affect, while others welcome the move to a more strategic way of working which harks back to the days of regional planning On the plus side, many applaud the cost savings likely to arise from the pooling of resources and the resulting savings for local authorities which are becoming increasingly financially pressed. Nonetheless, it is unlikely that devolved powers alone will counter the political manoeuvring by local councillors responding to local sensibilities around more housing, and particularly housing allocated in green or grey belt land.
This article was written by Rebecca Mushing, Senior
Associate and Head of Planning
EXPLORING THE DIFFERENT TYPES OF INVESTORS
Investing plays a key role in helping businesses grow and succeed, whether you're running a start-up or an established company aiming to scale up. For entrepreneurs and business owners, knowing the different types of investors is crucial when it comes to finding the right partners to fund your ventures Each type of investor offers their own benefits, strategies, and expectations, which can have a big impact on your business’s path forward
In this article, we break down some of the types of investors we often see within businesses, what makes them tick, and how they can help your business thrive
Angel Investors
Angel investors are typically high-net-worth individuals who invest their own money in earlystage start-ups in exchange for equity i e shares in your company Think Dragons Den These investors are often entrepreneurs themselves or industry professionals who understand the risks associated with new ventures.
Characteristics:
Invest in early-stage start-ups, often at the seed or pre-seed stage. Typically invest smaller amounts compared to venture capitalists, often ranging from £10,000 to £500,000.
Provide not just capital, but also mentorship, industry expertise, and valuable connections.
More willing to take risks on unproven business models or innovative ideas
Advantages:
Flexibility in terms of investment terms
Potential for a close working relationship with the investor
Access to a broader network of business contacts.
Challenges:
Angel investors might seek significant equity in exchange for their investment. Limited funds compared to other types of investors.
Venture Capitalists (VCs)
Venture capitalists are professionals who manage money from different sources, like institutional investors, and put it into fast-growing start-ups. VC firms usually look for businesses with big growth potential, especially in areas like tech, biotech, and other innovative industries.
Characteristics:
Invest in businesses at the growth stage, typically after the initial seed funding.
Can invest significant amounts, often ranging from £500,000 to several million pounds
Take a hands-on approach, often seeking board seats and active involvement in strategic decisions.
Focus on businesses with high growth potential and scalable business models.
Advantages:
Access to large amounts of capital to fuel rapid growth. Strategic guidance and mentorship from experienced professionals. Networking opportunities with other portfolio companies and industry leaders.
Challenges:
VCs often require significant equity and control over business decisions. High expectations for rapid growth and returns, which can add pressure on the business.
Private Equity Investors
Private equity (PE) firms invest in more mature companies, often with the goal of restructuring or scaling them up before selling at a profit. Unlike VCs, who focus on start-ups, private equity investors typically target established businesses with a proven track record.
Characteristics:
Invest in established companies, often through buyouts or significant equity stakes. Investments range from several million to billions of pounds.
Aim to improve the company’s profitability and operational efficiency before exiting, usually within 3 to 7 years
May involve restructuring, cost-cutting, or other strategies to increase value
Advantages:
Access to large amounts of capital for scaling or restructuring Expertise in improving business operations and profitability. Potential for significant growth and expansion under PE management.
Challenges:
PE firms often seek majority control, which can lead to loss of autonomy for existing management.
Focus on financial returns might lead to aggressive cost-cutting measures.
Crowdfunding
Crowdfunding investors are individuals who collectively invest in a business or project through online platforms. This type of investing has gained popularity due to platforms like Kickstarter, Indiegogo, and equity crowdfunding sites like Crowdcube and Seedrs.
Characteristics:
Allows businesses to raise small amounts of money from a large number of people. Can involve rewards, equity, or debt-based crowdfunding. Often used by start-ups or small businesses seeking alternative funding sources.
Advantages:
Access to capital without the need for large institutional investors. Ability to build a community of early supporters and customers. Less pressure from a single investor compared to traditional funding.
Challenges:
Requires significant marketing efforts to attract investors.
Smaller individual investments may require raising funds from a large number of people. Equity crowdfunding may involve giving away a significant portion of ownership.
Understanding the different types of investors is crucial for businesses at any stage of development. Whether you are a start-up seeking early-stage funding or an established company looking for growth capital, aligning with the right type of investor can significantly impact your success. Each investor type brings its own set of advantages and challenges, and the key is to find an investor whose goals and values align with those of your business By carefully selecting the right partners, you can secure the funding you need while also gaining valuable support, expertise, and resources to grow your business.
Wright Hassall are experienced legal advisors in relation to all types of investments, if you are considering raising capital, we would love to hear from you to discuss your options in detail
This article was written by Freya Summers, Partner and Head of our Corporate team
NEW COMMERCIAL TEAM
We have recently announced a new Commercial team – including a new senior appointment to lead the department
Our new Commercial team provides businesses with a wide variety of legal expertise.
Intellectual Property and commercial law specialist Ann Critchell-Ward has been appointed as a new Partner and Head of Commercial to lead the team. She will also strengthen the firm’s services by bolstering its non-contentious Intellectual Property offering.
The team also includes Senior Contracts Manager Robyn Hey, Solicitors Flora Patalane and Sabrina Rima and Paralegal Rajbir Grewal.
Robyn Hey has more than 20 years’ experience in helping businesses navigate the increasingly complex business landscape, while Flora is both a UK and French-qualified lawyer who specialises in commercial contract matters including business terms and conditions and franchise agreements, and is already working on distribution agreements with European companies.
Sabrina Rima specialises in commercial contracts, outsourcing and technology and also advises more broadly on commercial matters, and Rajbir is on course to qualify into the Commercial team via the LPC (Legal Practice Course).
Flora Patalane has extensive experience in commercial contract matters, advising businesses on Terms and Conditions, privacy policies, and both reviewing and drafting new ones. She also supports individuals and businesses entering into third-party relationships, including franchise sales and purchases.
Image caption: Sabrina Rima, Rajbir Grewal, Ann Critchell-Ward, Flora Patalane and Robyn Hey.
Common sense tells us that there are two main ways to adapt to negative pressure on profits: Slash overheads – including your salary and wage bill; or 1. Seek new and profitable markets. 2.
Realistically, the best way forward is a combination of the two but reducing costs has its limits. You cannot reduce overheads to the point where your business is unable to service existing customers or attract new clients According to the most recent government statistics, there are over 5 5 million SMEs operating in the UK That is a lot of competition.
There can be no doubt that increasing revenue in a way that boosts profit must be an essential component of your business’s 2025 financial plan. To achieve this, it may be time for you to consider a new market –doing business in the public sector.
some exceptions) places obligations on a contracting authority when embarking on a covered procurement process. Covered procurement refers to the award, entry into and management of a public contract.
In particular, the contracting authority must have regard to the importance of: delivering value for money; 1. maximising public benefit; 2 sharing information for the purpose of allowing suppliers and others to understand the authority’s procurement policies and decisions; and 3 acting, and being seen to act, with integrity. 4.
The contracting authority is also expected to have regard to the fact that small and medium-sized enterprises may face particular barriers to participation in the procurement process and consider whether these barriers can be removed or reduced
By building on, expanding or replacing concepts and definitions found in the current procurement regulations, the Act provides for categories of procurement contracts, the creation of what is known as a dynamic market and the expansion of the concept of a framework to include an open framework. ahead.
The Procurement Act 2023 came into force into force on 24 February 2025. This Act replaces the current somewhat fragmented procurement regulations and aims to provide a more streamlined procurement process In addition, a key objective of the act is to provide small and medium-sized businesses with an opportunity to benefit
Without unpacking these terms in detail, the outcome of these amendments, generally speaking, provides significant benefits to SMEs through the streamlining of the procurement process, the easing up on the current onerous and costly up front requirements before certain procurement contracts are awarded and the regulation of payment terms in certain circumstances in an effort to relieve some of the cash flow difficulties which many SMEs experience
There is also a greater emphasis on transparency and, subject to specific exclusions, a public authority is obliged to make information available throughout the duration of the tender Whilst this is all good and well, the new regime does not absolve the supplier from taking responsibility for their part in the process. The need for the proper allocation and use of public funds means that the procurement process still needs to be taken seriously by suppliers This means that before businesses dive into the procurement process headfirst, they need to understand the terms of the tender, whether they qualify to participate and how to prepare and submit their applications.
So, what does this mean for your business? It is now easier for SMEs to compete with bigger businesses in the procurement space which is a game changer.
However, like all business opportunities, there is always an element of risk. That said, with some careful planning and the help of trusted advisors, the opportunities under the Procurement Act can open up a whole new stream of revenue for your business
At Wright Hassall we are committed to seeing our clients’ businesses succeed We don’t just provide advice; we walk with our clients as they work to achieve their business goals. Our procurement expertise allows us to guide our clients through the whole process from making sure their businesses have solid legal frameworks, to assessing whether a procurement opportunity is a good fit, to drafting clear and compliant procurement documentation
Whether you have worked with public entities in the past and want to understand how the Procurement Act impacts your business or whether you are looking to explore this opportunity for the first time, reach out to us and we’ll gladly assist.
This article was written by Robyn Hey, Senior Contracts Manager in our Commercial team.
CAPACITY AND CARE HOME FEES FOR FARMING PARTNERSHIPS
As is often quoted, farming is one of the few occupations where the finances of both the business and the family are intrinsically linked leading to serious implications if either element comes under significant financial pressure.
From the family perspective, the most common pressure points are divorce, death and care home fees, with the latter becoming an increasingly significant issue as we lead longer, but not necessarily healthier, lives. Much has been written and said about the rising cost of care home fees and the need to liquidate assets to pay them – and nowhere does this resonate more than in the farming world where assets normally mean land – the very thing no farmer wants to lose.
Care Home Fees Require Significant Outlay
The desire of most farmers and landowners to pass on the land intact to the next generation can be thwarted by a need to raise capital to pay for long term care Although prices vary across the country, according to carehome.co.uk the monthly average for a care home is around £4,640, rising to £5,640 or more if nursing care is also needed. Although our private client team regularly advises farming families on estate planning in the event of death, the prospect of having to fund long term care is rarely discussed but is becoming an ever more pressing concern. Even when paying for care has been factored into the family’s plans, the length of time care may be required may not have been
Don’t Overlook Lasting Powers of Attorney
Other important documents to have in place are Lasting Powers of Attorney, one covering health and welfare, and the
other finances and property. It is often the case that a sudden or gradual mental deterioration affecting the mental capacity of a family member or partner is often not recognised, let alone acknowledged, until it is too late which could severely impact the ability of the partnership to deal with any assets and to enable the farming partnership to continue operating However, it is important to avoid any conflicts of interest – the attorney must operate in the best interests of the person affected, which may be at odds with the best interest of the business. Without a power of attorney, a family may need to apply to the Court of Protection, which is both time-consuming and costly, but may be the only way to achieve the best outcome for the family and the partnership.
Prepare For The Worst, Hope For The Best
We cannot emphasise enough the importance of facing up to the possibility of mental or physical incapacity that may lead to the need for professional care By preparing for the worst case scenario, it will be easier to lessen the potential impact of care home fees on a farming partnership arrangement. We can talk you through the elements you need to consider from protecting your business through to the care process, including when and how much you should pay, the sale of assets pay for care, contributions from family members, and how to ensure that the care placement is the right place providing the right care.
This article was written by Hannah Lloyd, Associate in our Farms and Estates team.
LIFE AFTER DIVORCE: KEEPING YOUR WILL UNDER REVIEW
A quick glance on the internet reveals any number of useful checklists to help those who are divorcing to reorganise their lives as a single person, from contacting HMRC to changeof-address notifications
Buried in the middle of these lists is perhaps one of the most important matters to be addressed – your will Getting – or being – divorced, or ending a civil partnership, is a timely reminder that your will is a living document that, without regular review, can quickly go out of date and give rise to many unintended consequences, not least dying intestate (i e as if you had never made a will).
Change Your Will Before You Divorce
Divorcing requires considerable gathering of information, much of it financially-related. Thinking about your assets in anything other than financial terms probably doesn’t occur to most people – unless the unexpected happens. If you have a will and you have left all, or even just some of, your assets to your spouse, that will remains valid throughout the process of divorcing even if you have separated and are living apart. This means that if you die, your spouse will receive whatever assets you have bequeathed them under the terms of your will
According to the most recent ONS figures, the number of men aged 65 and over has increased by 23%, and the number of women by 38%, within a decade. This means that, if you are divorcing later in life, it is a statistical probability that you have an increased chance of dying while the divorce is in progress – particularly if it becomes protracted for whatever reason
Therefore, it would be prudent to add ‘change my will’ to your checklist so that your estranged spouse is no longer listed as a beneficiary or, if named, as an executor of your will If you are planning to remarry after your divorce is finalised and you want your new partner to be named in your new will, you can insert a clause to reflect that it is being made ‘in contemplation of marriage to X’. As marriage revokes all previous wills, if you die after having married and without making new will post-marriage, you will die intestate. When drafting a new will during the divorce process, the addition of a letter of wishes outlining why your spouse is no longer a beneficiary will help to head off any claims on your estate if you die before the divorce is finalised.
…Otherwise Your Old Will Remains Valid Post-Divorce
The dissolution of a marriage or civil partnership does not revoke a will, but it does invalidate any appointment or provision in the will relating to a former spouse/partner If the terms of your will do not make further provision beyond that of your former spouse/partner, then your estate will be managed as if you had died intestate, which means there is no valid will. The rules of intestacy are very prescriptive, so your assets will be distributed in strict order of family relationships, potentially resulting in the distribution of your estate in a different way
to that you would have chosen and may also impact on advance estate planning It is vital that you take legal advice to review your will following divorce, the termination of a civil partnership or any change in your personal circumstances
With the rise in second and even third marriages, family structures and relationships are increasingly complicated On re-marriage, many people make wills to ensure that their assets are split proportionately between their respective families If the relationship breaks down, the likelihood is that you will want to reconsider to whom you want your assets distributed not least, as failure to do so, may spark a claim against your estate under the Inheritance Act 1975 which is costly, emotionally draining and very time-consuming.
What Else Should I Think About?
If you have put Lasting Powers of Attorney in place (for finance and property and / or health and welfare) the chances are you have named your spouse as one of your attorneys. If you are getting divorced, it would be sensible to remove your spouse as an attorney and appoint someone else you trust in their place. To do this, you must send a deed of revocation to the Office of the Public Guardian If you have appointed other attorneys (such as adult children or other responsible adults) to act for you jointly and severally, your LPA can continue while you sort out the revocation.
If you are married, you may own the family house as joint tenants which means that you both own 100% of the property If one of you dies the house automatically goes to the surviving spouse and thus falls outside your estate – even if you have updated your will because you are in the process of divorcing. The answer – if feasible – is to change the title so that you and your spouse own the house as tenants-in-common, whereby each of you will own a distinct share (usually 50-50 although the ratio could differ to reflect your individual financial investment). Your share is then yours to leave in your will to whom you wish. Understandably this is not necessarily something you would want to do in the emotional upheaval of a divorce but it something that your lawyer will be able to help you with
Likewise, if your ex-spouse dies, any regular payments you receive as a result of your divorce settlement will stop so it is worth considering insurance options before your divorce is finalised.
The Common Law Myth
A common mistake is to assume that if you are unmarried but in long-term relationship (often erroneously referred to as a common law spouse) your partner will automatically inherit your estate if you die This is not the case If you die without having made a will, the intestacy laws prevail and your nearest relatives (starting with any children) will inherit, regardless of whether or not you are still together or in the process of leaving the relationship. However, if you have made a will in which you have left assets to your partner then it is essential that you change it if the relationship ends. Unlike a married couple, the expartner, unlike an ex-spouse, does not cease to ‘exist’ as far as the will is concerned and will continue to be a beneficiary if named as such
We all know how distressing it is to end a relationship regardless of the circumstances, and emotions will range from deep sadness to fury. Nonetheless, working through your checklist can be cathartic as it helps you plan ahead – and changing your will is a powerful way of signalling that you are in control of your new future Our family team works closely with our private client team, which has considerable experience of advising divorcing couples on wills, LPAs and other related matters. Please call us and we would be delighted to talk you through the options.
This article was written by Karen Brennan, Partner and Head of our Family team and Richard Dundee, Partner in our Private Client team
NEWS ROUNDUP
Podcast shout out!
We continue to expand our podcast offerings! Both of our podcast channels have been regularly updated with fresh content:
The WHorld of Law features episodes from various teams across our business, diving into a wide range of legal topics.
The WHorld of Employment Law focuses specifically on Employment Law and HR matters, providing in-depth insights into the latest trends.
With more areas of law being covered, all current episodes of both podcasts are available for free in the Knowledge Base on our website.
Private Client news
Our Private Client group have recently reached several notable milestones. Neal Patterson completed the Agricultural Law Association Fellowship Course, and Richard Dundee became a Dementia Friend, both showcasing their commitment to clients.
Congratulations also go to Siobhan Sibley, who passed her Advising Vulnerable Clients Exam Siobhan is also a member of The Society of Trust and Estate Practitioners and The Association of Lifetime Lawyers, further enhancing her expertise.
End Workplace Bullying Day
We ran our second campaign to raise awareness for End Workplace Bullying Day on October 25th, 2024
During this campaign, we offered free advice to employers concerned about a toxic workplace environment and guidance on how to address it, as well as support for employees experiencing bullying and seeking professional advice
Dates for your diary
A series of important conferences are set to take place this year, offering professionals across various sectors valuable insights and networking opportunities
The Succession Planning Conference will take place on April 10th, where our Private Client Team will be covering how to ensure the longevity and stability of your business with expert guidance on succession planning
In addition to this event, a variety of other specialised conferences will be held throughout the year, including Employment, Construction, Real Estate, Agriculture, and Dispute Resolution Conferences Each conference is tailored to address the latest trends, challenges, and opportunities in its respective field, with expert speakers and panel discussions on hand to provide practical advice and thought leadership
These events promise to be essential for professionals looking to stay ahead in their industries More details on registration and speakers will be announced soon
CFA SUCCESS IN INHERITANCE ACT CLAIM
The Supreme Court heard the appeal in Hirachand v Hirachand in January 2024, and the judgment has been long awaited. Our Contentious Probate team advised the Appellant, Mrs Hirachand, via her litigation friend, alongside counsel, Brie StevensHoare KC, Cameron Stocks of Gatehouse Chambers; and Oliver Ingham of 3 Paper Buildings. The Supreme Court case summary distils the issue in dispute and the key facts of the case however, a fuller case summary dealing with each preceding decision prior to the Supreme Court, is set out below.
Judgment
Judgment was handed down on 18 December 2024 and the Supreme Court has now ruled that success fees due under a conditional fee agreement are not recoverable as part of a substantive award for reasonable financial provision made under the Inheritance (Provision for Family and Dependants) Act 1975 (“the Act”).
Background
Our client, who appealed the Court of Appeal’s decision, is the widow of Navinchandra Dayalal Hirachand (“the Deceased”). Mr Hirachand left his estate to our client and no provision was made for either of his children The Deceased’s eldest daughter, who was estranged from our client, issued a claim in 2017 pursuant to the Act, on the basis she had not been provided with reasonable financial provision from her father’s estate. The daughter relied on the fact she was not able to work and as such was reliant on state benefits and ad hoc financial support from her partner, due to her poor mental health, to advance her claim that she should be provided with financial provision from the Deceased’s estate.
At a remote trial, in April 2020, it was determined that the claimant’s situation meant that she was in real
financial need, which was only made worse by the fact that this necessitated her entering into a funding agreement with her lawyers on a ‘no win, no fee’ basis, otherwise known as a Conditional Fee Agreement (“CFA”). In this instance, the success fee if the daughter achieved a successful outcome, was set at 72% by reference to the base costs incurred. The standard expectation is that a claimant funding their claim pursuant to the Act will need to use an element of any award or settlement sum, to satisfy the success fee, which is not recoverable from the estate. It therefore follows that the sum available to the claimant is reduced by that amount. The judge at first instance wished to avoid that reduction and as such, ordered both an award to meet the daughter’s needs at the time of the final hearing and a contribution towards the success fee for which she was liable. This second element of the award went against the usual rules of awarding costs in civil litigation, on the basis that it is not possible to recover success fees from the unsuccessful party
Our client was granted permission to appeal to the Court of Appeal.
Court of Appeal decision
Permission to appeal was given on two grounds: firstly, that the trial should not have been held remotely on account of Mrs Hirachand being profoundly deaf which made it difficult for her to follow the proceedings; and secondly, on the basis that it was incorrect for the judge to have included a contribution towards the success fee associated with the CFA, in the financial award which should have been limited to meet the daughter’s maintenance needs.
Lady Justice King gave the lead judgement; the appeal was dismissed on both grounds. In respect of the first
ground of appeal, it was determined that on the basis that Mrs Hirachand had been debarred from taking an active role in the proceedings, it was not wrong to hold for the hearing to have been conducted remotely Despite the mode of hearing, Mrs Hirachand had been able to attend the hearing, with a care worker. Given Mrs Hirachand was not permitted to take part in the hearing, it mattered not whether she followed proceedings.
As to the second ground, Lady Justice King observed that the only way the daughter could fund her claim was by way of a CFA. The success fee associated with the CFA could only ever be paid from a financial award to meet the daughter’s maintenancebased needs As such, the payment of the success fee would have the effect of the award no longer providing for the entirety of the daughter’s maintenance.
It was held by the Court of Appeal that a success fee associated with a CFA in a claim under the Act, was capable of being deemed a debt. As such it could form part of a claimant’s financial needs and could be treated as need when assessing reasonable financial provision The payment of the success fee from the financial provision award would therefore create a position whereby the daughter would no longer be able to meet her financial needs despite having an award made in her favour.
Despite this ruling, the Court of Appeal made it clear that such a ruling would only apply if a CFA was the only way a litigant could fund legal representation and that such an order would amount to ‘reasonable provision’ only
Supreme Court
The Supreme Court has now ruled that success fees due under a CFA are not recoverable as part of a substantive award for reasonable financial provision made under the Act.
This is because whilst claims under the Act remain subject to the Civil Procedure Rules, costs of the proceedings are treated separately from the substantive relief; and a substantive award may not include either directly or indirectly, provision for a success fee under a CFA.
As a firm, we have long offered alternative funding arrangements to our clients where their matter allows, and we shall continue to do so. We pride ourselves on being forward-thinking and progressive when it comes to funding models, including ‘no win, no fee agreements’
Please contact our Contentious Probate team should you require further guidance and advice
This article was written by Katie Alsop, Partner in our Contentious Probate team.
WARWICKSHIRE LAW SOCIETY SUCCESS
Katie Alsop, Partner and Head of Disputes at Wright Hassall, has been presented with the highest accolade at a top regional awards ceremony in recognition of her professional excellence and commitment to supporting others She was was named 'Lawyer of the Year' at the Warwickshire Law Society Awards at Nailcote Hall, in Berkswell
The awards are held annually and recognise excellence across the region’s legal sector, with around 200 people in attendance at this year’s event
Katie joined Wright Hassall in 2004 as a Junior Secretary and studied part-time at Coventry University in the evenings to obtain her law degree. She has since progressed to Partner in the Contentious Probate Team, now specialising in contested agricultural estates, and Practice Lead for the Disputes Group, overseeing all disputes teams and their business development
She is also a fully qualified member of the Association of Contentious Trust and Probate Specialists. Katie was presented with the Lawyer of the Year award as a result of her excellent attitude to supporting and mentoring more junior members of staff within their practice, shaped by her own experiences of moving from a junior role to Partner within Wright Hassall
She was also highlighted as going above and beyond to share her knowledge outside of the firm to benefit others, being recognised for her excellence in the Legal 500 and the Chambers & Partners High Net-Worth Guide and contributing to a range of professional associations and the farming charity, the Royal Agricultural Benevolent Institution
“I am extremely proud to have received this award, and I couldn’t have done it without the support of my colleagues throughout the years ”
“I am very passionate about my work, nurturing young talent and sharing knowledge to help the next generation grow, and it is wonderful to receive this recognition from the Society.”
IMMIGRATION SPONSORSHIP ALERT: SPONSOR GUIDANCE CHANGES FOR 2025
The Home Office has made several important changes to the Sponsor Guidance in its new 01/25 versions, heralded by a ministerial statement in December. The main changes are as follows:
Migrant’s contribution to sponsorship fees
The first important change is that Sponsors in the Skilled Worker route are now additionally prohibited from passing on all or any part of sponsor licence application fees (including associated administrative costs)
Certificate of Sponsorship (CoS) fees, to Skilled Workers they wish to sponsor
Previously, the prohibition applied to the Immigration Skills Charge only
If a sponsor is found to have passed on the fees their sponsor licence may be revoked Parts 1 and 2 of the Sponsor Guidance contain these updates, which apply from 31 December 2024.
“Associated administrative costs” are not clearly defined, but can be taken to include directly associated translation, certification and legal fees. The specific wording around “Skilled Worker” invites the question as to whether this also applies to Global Business Mobility (Senior or Specialist worker) applicants The immigration minister confirmed in her statement that it will be extended to other routes, later this year.
Sponsorship in a personal capacity
Next, sponsors are now prohibited from using a sponsor licence to sponsor workers in a personal capacity. The Guidance gives two examples of this:
where the sponsor is an individual or household and is not otherwise conducting business or providing a service in the UK, and where the workers would be employed by or engaged for the personal benefit of, an individual who works for the organisation, or a close relative or partner of that individual, and the role is unrelated to the organisation’s wider activities. There is a new refusal point in the caseworker guidance to highlight this
The new Guidance states that sponsors who are found to have used this arrangement from 31 December 2024 will normally have their licence revoked - and if they have previously been permitted to sponsor workers in a personal capacity, they must not assign any further Certificates of Sponsorship to sponsor workers on this basis. Despite the previous lack of clarity on the point – which had been probed by immigration lawyers over time, frequently put to the Home Office and eliciting differing, usually vague responses – we can assume that those currently sponsored may remain so under their current CoS. There is silence on the potential impact on future ILR applications, but we must also assume that extensions requiring a new CoS are prohibited as they are for new would-be applicants. There is an exception for private servants in a diplomatic household, being sponsored under the International Agreement route.
Key Personnel
The Key Personnel roles of Authorising Officer, Key Contact and User have always been subject to some level of restriction on who may be appointed
The Home Office “considers” those nominated before approving them The latest version clarifies that sponsors must not nominate Key Personnel who are legally prohibited from being a company director (for any reason, including bankruptcy), unless a court has given permission for that person to act as a director, or to promote or form a business, and acting as Key Personnel would not contravene that permission. There is a new refusal point in the sponsor guidance to highlight this.
Sponsors who apply for a licence on or after 31 December 2024 must ensure that at least one Level 1 User must be both (i) an employee, director or partner of the organisation and (ii) a settled worker. The guidance states that while persons with a licence applied for before 31 December 2024 can continue to follow the previous arrangement, this may change in the future. Sponsors are advised to appoint at least one Level 1 User who meets both requirements. The Guidance also states that Key Personnel must have a valid National Insurance number, unless they are exempt from requiring one
Sponsor UK – a new IT platform
The Home Office’s new sponsorship IT system ‘Sponsor UK’, is being tentatively rolled out to a number of Government Authorised Exchange (GAE) sponsors. It will not have provision for Level 2 Users, so all Sponsor UK users must meet the Level 1 User requirements - see above.
Prohibition on sponsor as disguised Employment agency or business
Where the Home Office has reason to believe a prospective sponsor is acting, or will act, as an employment agency or employment business and intends to supply a worker it would be sponsoring to a third party as labour this will result in a mandatory refusal of the Sponsor Licence application
This is an amplification of the longestablished prohibition on “bodyshopping” which, the Home Office has concluded, had become too permeable to workarounds
Genuine employment – capacity and intention
A sponsor must be both able to and intend to
offer genuine employment that meets the salary and skill-level criteria of the Skilled, Worker, Scale-up or Global Business Mobility routes as applicable. Not being able to do will now result in a mandatory refusal.
The end of Biometric Residence Permits; vignettes and short-term visas
The Part 2 (Sponsor a worker) Guidance has amended the provisions around Biometric Residence Permits from the 31 October 2024 version This is to reflect that an eVisa accessed through an individual UKVI account is the only proof of status that in-country applicants and EEA or Swiss national entry clearance applicants will now receive. Those applying for entry clearance who did not use the UK immigration: ID check app will still receive a vignette in their passport Those applying for entry clearance of more than six months will get a 90-day short term entry clearance and will then need to create a UKVI account to access an eVisa. Those with entry clearance for less than 6 months will receive a vignette valid for the appropriate duration - and will not have an eVisa
Route-specific guidance
Some of the route-specific guidance has been updated
Sponsor a Skilled Worker Guidance provides that a Defined CoS must be assigned to a worker within 90 days of the date it was allocated to the sponsor, instead of three months.
It amends the category name for students in s a switchable route applying for Skilled Worker permission to Skilled Worker (Student course complete switching to Skilled Worker).
Amendments to the Sponsor a Global Business Mobility Worker Guidance includes adding details of the incorporation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
This article was written by Matthew Davies, Partner and Head of Business Immigration and Vishal Makol, Associate in our Business Immigration team
IMPROVED PROTECTIONS AGAINST FRAUDULENT PAYMENTS
Fraudulent activities in the UK have reached concerning levels. Driven largely by advancements in technology and widespread conversion to electronic bank transfers and digital transactions, the most recent data indicates that more than £570 million was stolen through authorised and unauthorised fraud in the first half of 2024, and the total cost of fraud in 2024 is estimated to be similar to the amount of £1.17 billion stolen in 2023
But there is good news: October 2024 saw the introduction of two new initiatives by UK banks that are expected to significantly address the problem of fraud New reimbursement obligations for authorised push payment fraud came into force on 7 October 2024, and on 31 October 2024 the name-checking service, Confirmation of Payee (CoP) was rolled out to safeguard over 99% of transactions using Faster Payments and CHAPS
What can go wrong when you make a payment?
We have highlighted previously that when payments are made or received by businesses or individuals there are three things that may go wrong:
A mistaken payment is made because of an accidental error
An unauthorised payment is made because of theft of a card, hacking, or other form of fraud and the payer’s credentials are used without their knowledge
An authorised push payment (APP) is made because the payer has been tricked or scammed
Although making a mistake such as mistyping or misdirecting a payment is stressful and potentially costly, according to UK Finance, the biggest cost to individuals and businesses in the UK is from the two other types of wrongful payments, unauthorised and authorised push payments, both ultimately generated through fraud.
The consequences of unauthorised payment fraud
Transactions without the consent of the customer have been covered by banking and finance regulations for some time Provided that the individual or business who is the bank’s customer uses the payment instrument, such as a bank card, correctly, and reports any unauthorised transaction or of the loss or theft of the bank card to the bank promptly after becoming aware, they will receive a full refund Nevertheless, taking steps to keep bank cards, passwords, PINs and identity safe should be standard practice for us all.
Addressing APP fraud
Increased APP fraud losses appear to be driven by the abuse of online platforms and telecoms. Criminals use websites, phone calls, text messages and emails to encourage the fraudulent transfer of money through investment, romance or purchase scams
With the advent of generative AI and deepfakes, the number of impersonation scams is on the up.
The protections that came into operation in October relate to APP fraud.
APP fraud reimbursement protections
These protections apply to payments under the value of £85,000, within the UK, to individuals, microenterprises or charities. Victims of such fraud must be reimbursed by banks within five business days. We have previously given more detail about these protections
Remedies for businesses
Since the new payment protection rules only apply to individual consumers, smaller charities (under £1 million annual income), and businesses (with fewer than 10 people and turnover under £2 million), CoP has become an essential anti-fraud tool for businesses.
How to make the most of CoP protection
To make the most of CoP protection, when making or accepting payments businesses should take the following steps:
For payments to you, be sure to give your business or trading name that’s registered on your account.
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Before you make a payment, contact the person or business you want to pay, and check the name on their account.
Be sure to select the correct type of account for the person or business you are paying.
If you are paying a person, use their first and last name, and if you are paying a business, use the business or trading name registered to their account.
If you don’t get a match, you should contact the person or business you are trying to pay to confirm the account name, sort code and account number
Summary
The improved protections relating to reimbursement obligations and confirmation of payees should help to address the high incidence of APP fraud and its consequences. But vigilance is needed to avoid falling victim to fraudulent payments
This article was written by Nathan Talbott,
Partner and Head of Commercial Litigation
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The information provided in these articles are provided for general information purposes only, and does not provide definitive advice It does not amount to legal or other professional advice and so you should not rely on any information contained here as if it were such advice
Wright Hassall does not accept any responsibility for any loss which may arise from reliance on any information published here Definitive advice can only be given with full knowledge of all relevant facts If you need such advice please contact a member of our professional