The 195th Practice Direction Update introduces important refinements to the Damages Claims Pilot, the online process for certain civil damages claims. Effective from 27 May 2026, the changes are designed to improve clarity around the pilot’s scope and ensure it remains suitable for straightforward disputes that can be managed efficiently through a digital system.

What is the Damages Claims Pilot?

The Damages Claims Pilot is an online court process that enables parties to issue, manage and progress certain money claims digitally. It is intended to streamline proceedings, reduce reliance on paper-based processes, and minimise the need for in-person hearings.

The pilot is best suited to relatively straightforward claims that can progress without significant procedural complexity or early judicial intervention.

Key Changes Introduced by the 195th Update

1. Clarification of the Scope of Claims

The update clarifies (rather than fundamentally expands) the types of claims that may be brought within the pilot. While the primary focus remains on claims for damages, the revised provisions recognise that claims may include limited non-monetary remedies, such as injunctions, declarations and rescission.

However, such claims will only fall within the pilot where the inclusion of additional remedies does not render the claim unsuitable. For example, by introducing complexity better suited to other procedural tracks or specialist courts.

2. Excluded Claims

The amendments reinforce that not all claims are appropriate for the pilot. In particular:

Claims typically handled by the Business and Property Courts are excluded.
Certain claims under the Consumer Credit Act 1974 (subject to specific exceptions) are also excluded.

This ensures the pilot remains focused on claims that can benefit from streamlined digital management.

3. Interim Remedies

The update provides important clarification on the treatment of interim remedies. Where an application for an interim remedy is made before or at the time of issuing proceedings, the claim will generally fall outside the pilot. This reflects the intention that the pilot is reserved for claims that do not require urgent judicial intervention at the outset.

Where interim applications arise later in the process, the amendments clarify how they should be handled. In most cases, such applications will be dealt with by a County Court hearing centre rather than through the central online system, ensuring that more complex or urgent issues are managed at the appropriate level.

Practical Implications for Claimants

The update also highlights several practical considerations:

Where a claim includes a non-monetary element (such as an injunction), failing to abandon that element when seeking judgment may affect how the claim proceeds.
Including additional remedies or procedural steps may result in the claim being removed from the pilot.
The pilot operates most effectively where claims are kept as simple and focused as possible.

In practical terms, claimants should: (i) carefully consider whether any non-monetary relief is genuinely necessary; (ii) avoid issuing applications for interim relief at the outset where possible; and (iii) assess at an early stage whether the nature of the dispute risks placing it outside the pilot.

Conclusion

The 195th Practice Direction Update ensures greater clarity around the operation and scope of the Damages Claims Pilot. The changes confirm that the pilot remains a valuable and efficient route for straightforward damages claims, while drawing clearer boundaries around cases that require more complex handling.

For clients and practitioners, the key takeaway is the importance of early strategic consideration. Ensuring that a claim is appropriately framed, and avoiding unnecessary complexity, will maximise the likelihood of benefiting from the efficiencies offered by the pilot.