As we move into 2026, it is clear that law costs is changing. Not because of a single reform or headline-grabbing development, but because of a steady shift in how firms structure teams, value experience and think about risk.

From a recruitment perspective, the past year has been less about sudden spikes in demand and more about a gradual recalibration. Firms are reassessing what they actually need from costs professionals, where pressure sits in their teams, and how exposed they may be if the wrong skills are missing.

Looking back at 2025, a number of themes consistently came up in conversations with firms across litigation practices. These are not predictions, but observable trends that are likely to carry through into 2026.

1. Costs Teams Being Pulled in Earlier

One of the clearest shifts has been the point at which costs professionals are involved.

More firms are bringing costs input forward in the lifecycle of a matter, particularly where fixed recoverable costs or tighter commercial parameters apply. From a hiring perspective, this changes the profile firms look for. There is greater emphasis on individuals who are comfortable advising early, sense-checking assumptions and engaging with fee earners before positions become fixed.

This doesn’t reduce the importance of technical skills though. It increases the value of those who can apply them proactively rather than retrospectively.

2. Greater Emphasis on Commercial Awareness

Technical costs expertise remains non-negotiable, but it is no longer sufficient on its own.

Across 2025, firms increasingly spoke about the need for costs professionals who understand the commercial context of cases. This includes awareness of funding structures, insurer expectations and client sensitivity around predictability and exposure.

From a recruitment standpoint, this has led to more nuanced conversations. Firms are less focused on job titles and more focused on how individuals operate in practice. The ability to communicate clearly, challenge assumptions and support wider decision-making is becoming a consistent differentiator.

3. Fixed Costs Driving Skills, Not Reducing Them

While fixed recoverable costs are not new, their influence on team structures became more apparent through 2025.

Rather than simplifying costs roles, fixed costs have increased the importance of early judgement and accuracy. Firms are therefore cautious about where they take risk in their teams. This has reinforced demand for experienced costs professionals who can operate confidently within fixed frameworks and understand where pressure points lie.

From a hiring perspective, this has not reduced demand. If anything, it has sharpened it, particularly for individuals with experience across different types of work and procedural environments.

4. Capacity and Succession Becoming Visible Risks

Another theme that surfaced more frequently in 2025 was capacity risk.

Many firms rely on a small number of senior costs professionals whose knowledge is deeply embedded. When those individuals are stretched, absent or leave, the impact can be immediate. This has prompted more firms to think about succession, resilience and whether their costs capability is overly concentrated.

In recruitment terms, this often shows up as a desire to strengthen teams quietly rather than expand them visibly. Firms are looking to reduce dependency on individuals without destabilising existing structures.

5. Recruitment Becoming a Risk Decision, Not a Growth One

Perhaps the most important shift is how firms frame costs hiring itself.

In many cases, recruitment in costs is no longer about expansion. It is about safeguarding the business. Firms are thinking carefully about what happens if key expertise is missing, overloaded or misaligned with how the practice now operates.

As a result, hiring decisions are more deliberate. There is greater scrutiny around experience, adaptability and long-term fit. Firms are less willing to compromise on core skills, even if that means longer hiring timelines.

Looking Ahead

Taken together, these trends point to a costs landscape that is becoming more specialised, not less.

The role of costs professionals is evolving in line with wider commercial and risk pressures, and firms are adjusting their expectations accordingly. For costs lawyers, costs draftspeople and wider costs teams, this creates both challenge and opportunity. The challenge lies in rising expectations and broader responsibility. The opportunity lies in the increasing value placed on experience, judgement and adaptability.

From a recruitment perspective, 2026 is likely to be less about volume hiring and more about targeted, risk-aware decisions. Firms that recognise how their costs needs are changing, and plan accordingly, will be better placed to navigate what remains a demanding environment.

About Clayton Legal

Clayton Legal is a specialist legal recruitment consultancy with long-standing expertise across law costs, litigation and dispute resolution.

We work closely with law firms of all sizes to support the recruitment of costs lawyers, costs draftspeople and wider costs professionals, from junior through to senior and leadership level. Our understanding of the costs market is built on long-term relationships with both firms and candidates, rather than short-term hiring trends.

Clayton Legal is also a long-term sponsor of conferences run by the Association of Costs Lawyers, reflecting our ongoing commitment to the costs profession and the people working within it.

If you would like to discuss how changes in the costs landscape may affect your team, or if you are considering your next move within law costs, please get in touch with our specialist team for a confidential conversation.