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PARLIAMENTARY DEBATE
Alternative Dispute Resolution Regulations - 2 July 2026 (Commons/Commons Chamber)

Debate Detail

Contributions from Alison Bennett, are highlighted with a yellow border.
LD
Alison Bennett
Mid Sussex
6. Whether his Department has provided guidance on the potential impact of the Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Fees) Regulations 2026 on small businesses providing arbitration services.
  09:57:28
Kate Dearden
The Parliamentary Under-Secretary of State for Business and Trade
The Department has not provided guidance on that matter. Fees relating to the accreditation and monitoring of alternative dispute resolution providers have not risen since 2015, and have been significantly eroded by the impact of rising costs. The intention behind the new fee structure is to ensure that, over time, fees are commensurate with the costs of the Chartered Trading Standards Institute performing the relevant functions to the required standards, that they are predictable for ADR providers, and that they provide costs recovery for the CTSI.
  09:58:00
Alison Bennett
I thank the Minister for that response. Caroline from Lindfield owns a small business that provides arbitration services. Since the introduction of the one-size-fits-all fees set down earlier this year, her business model and that of so many other small ADR providers has become nigh on impossible to sustain. Has the Minister considered the impact on the sector from the fee changes? Can she explain why no impact assessment has been done? In particular, has she received feedback from trading standards since the legislation came into force?
Kate Dearden
I thank the hon. Lady for her question. A well functioning ADR system makes markets work more effectively and drives economic growth. We are committed to ensuring that consumers and businesses are able to resolve disputes early, which helps to raise consumer confidence and compliance rates. We acknowledge that there will be a period of adjustment as the new fee structure beds in, and in the autumn we will conduct a review to assess whether the fee structure should be amended further. We recognise the importance of ensuring that charges are fair and proportional for all ADR providers and the CTSI as the competent authority.

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