Statutory interest (section 69)

Interest on a debt or damages is often the easiest part of a claim to overlook — and one of the easiest to add, if you ask for it correctly.

Do I get statutory interest automatically, or do I have to ask for it?

You have to ask for it. Interest under section 69 of the County Courts Act 1984 is discretionary — the court can award it, but generally only if you have specifically claimed it in your particulars of claim, setting out the rate and the date from which you say it should run. Leaving it out of your claim can mean losing the right to it later.

Is the interest rate always exactly 8%?

8% is the commonly used rate the courts apply under section 69, but it is not fixed by the statute itself — the court retains discretion over the rate in the particular case. For contracts between businesses, a different regime under the Late Payment of Commercial Debts (Interest) Act 1998 can apply instead, which uses the Bank of England base rate plus a fixed margin and is often higher than 8%.

From what date does interest start running?

Usually from the date your cause of action accrued — for example, the date a debt fell due or the date damage occurred — though the court has discretion to choose a different date if that is fairer in the circumstances. State the date you are relying on clearly in your particulars of claim.

Does interest keep running after I get judgment?

Section 69 interest itself stops at the date of judgment — it does not continue to accrue afterwards. Separately, a distinct rule, the County Courts (Interest on Judgment Debts) Order 1991, allows judgment debts of £5,000 or more to carry interest at 8% per year from the date of judgment onward until the debt is paid. Judgments below that threshold generally do not carry statutory post-judgment interest under this rule.

Is the interest calculated on the whole amount for the whole period?

It is calculated as simple interest, not compound — a daily rate applied to the amount outstanding over the number of days between the start date and the date of judgment. If part of the debt was paid partway through, interest is normally calculated on the reducing balance from the date each payment was made.

Can I still claim interest if my claim is for a fixed sum I have already worked out?

Yes. You can either state a fixed sum of interest already calculated up to the date you issue the claim, plus a daily rate for any period after that, or ask the court to determine the appropriate amount. Setting out your calculation clearly, with the rate, start date and daily amount, makes it easier for the court to assess and for the other side to understand what you are claiming.

Why interest matters and why it's easy to miss

When money is owed to you and paid late, you lose the use of that money for however long the delay lasts. Section 69 recognises this by giving the court a discretionary power to award interest on a debt or on damages, on top of the underlying sum claimed. In practice, courts commonly apply a rate of 8% a year, though the statute itself does not fix that figure — the court retains discretion over both whether to award interest and what rate to apply in the circumstances of the case.

The catch is that interest under section 69 is not automatic. If you do not claim it in your particulars of claim — stating the rate you are seeking and the date from which it should run — you risk the court simply not awarding it, even where you would otherwise have been entitled to ask.

How the calculation works

Interest under section 69 is

, not compound — it is calculated on the outstanding amount at a daily rate, rather than being added to the balance and then earning further interest on itself. If the debtor makes a partial payment during the period, interest is normally calculated on the reduced balance from the date of that payment onward, rather than on the original full amount for the entire period.

You can either state a precise sum already calculated up to the date you issue your claim, plus a continuing daily rate for any period afterward, or ask the court to determine the figure. Setting out the rate, the start date and a clear daily amount makes your claim easier for both the court and the other side to check.

A claimant is owed £4,000 for work completed and invoiced on 1 January 2026, which the defendant has still not paid by the time judgment is given on 1 July 2026 — 181 days later. The claimant included a claim for statutory interest at 8% from the invoice date in their particulars of claim.

Daily rate (8% ÷ 365 × £4,000)

Because the claimant pleaded interest correctly, the court adds £158.74 to the judgment. Had the claimant left interest out of the particulars of claim entirely, they would likely have recovered only the £4,000 principal.

Particulars of claim

County Courts Act 1984, section 69

County Courts (Interest on Judgment Debts) Order 1991

Late Payment of Commercial Debts (Interest) Act 1998

Statutory Interest (Section 69) — Small Claims Glossary

How statutory interest under section 69 of the County Courts Act 1984 works, the 8% rate courts commonly apply, and how to claim it in your particulars.