The government will resist calls to transfer claims management regulation to another independent regulator.

Justice minister Helen Grant (pictured) told a House of Commons debate last week that fundamental change was wrong at a time when reforms were tackling bad practice by the sector.

But her department does intend to raise fees for claims management companies (CMCs) to prepare for an anticipated exodus of companies from the market. The Ministry of Justice plans to raise application fees by 47% to £1,400 in 2013/14.

Grant said the government’s response to a consultation on CMCs should be released by the new year. It is likely to include plans to require contract agreements between CMCs and consumers to be made in writing before any upfront fees are taken.

CMCs will also have to state that they are regulated by the claims management regulator rather than the MoJ, and to publish terms and conditions on their website as standard.