Form N292 UK: Settlement Approval for Protected Parties
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When a civil dispute involves a child (under 18) or a protected party who lacks mental capacity, any settlement reached between the parties cannot simply take effect the way it would for two adults with capacity. The court has a supervisory role, and the agreed terms must be put before a judge for approval.
Form N292 is the document used to place those terms before the court as a draft consent order. In this guide I'll walk through what the form covers, when you would use it, and the practical points that tend to trip people up.
If you're a claimant's solicitor, a litigation friend, or simply trying to understand why an agreed deal still needs the court's blessing, the sections below should give you a clear picture of how Form N292 fits into the process.
What this document is
Form N292 is a court form used in civil proceedings in England and Wales to record the terms of a settlement that has been agreed on behalf of a child or a protected party. Rather than acting as the agreement itself, it is structured as a draft order inviting a master or district judge to approve the settlement and turn it into an order of the court.
The reason for this extra layer of oversight is straightforward: children and protected parties cannot give binding consent to settle their own claims, so the court steps in to check that the terms are fair and in their best interests. The form typically sets out the claim details, the agreed sum, how that sum is to be paid and held, any apportionment under legislation such as the Law Reform (Miscellaneous Provisions) Act 1934 or the Fatal Accidents Act 1976, and the arrangements for costs. Once approved, the settlement becomes binding and the defendant can be discharged from further liability on the claim.
How to use this document
- Confirm the settlement is agreed in principle. Before completing Form N292, both sides need to have reached a clear agreement on the headline figure, how costs will be dealt with, and any apportionment between dependants or estates where relevant. Ambiguity at this stage tends to cause problems at the approval hearing, so pin the terms down first.
- Gather the claim details and party information. You'll need the claim number, the court where proceedings are issued, and the full names of the claimant and defendant. Where the claimant is a child, the litigation friend should be named. Where the claimant is a protected party, confirm the authority under which the litigation friend is acting so the record is complete.
- Draft the operative terms of the order. Set out the sum to be paid in satisfaction of the claim, the deadline for payment into court, any apportionment under the 1934 and 1976 Acts if the case involves a fatal accident, and provision for interest or a further sum if the defendant misses the payment date. Keep the wording precise because the court will scrutinise it.
- Deal with investment and costs arrangements. The form typically provides for how the money will be held for the benefit of the child or protected party, for example payment into the Court Funds Office, and for the claimant's legal costs to be paid by a stated deadline. If a receiver or deputy is to manage funds for a protected party, that needs to be reflected too.
- File and attend the approval hearing. Lodge the draft order with the court along with any supporting evidence required under Part 21 of the Civil Procedure Rules, such as counsel's advice on the merits of settlement. The court will list an approval hearing, and once the judge is satisfied the terms are appropriate, the draft becomes a sealed order of the court.
Common questions
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.
Common questions
Q Why does a settlement for a child or protected party need court approval?
Children under 18 and protected parties who lack capacity cannot give legally binding consent to compromise a claim. The court's role is to check that the terms are fair and genuinely in their best interests before the settlement takes effect. Without approval under Part 21 of the Civil Procedure Rules, the agreement is not binding, and the defendant could not safely rely on it as a full and final resolution of the claim.
Q Who is a 'protected party' for the purposes of Form N292?
A protected party is an adult claimant or defendant who, because of an impairment of the mind, lacks the mental capacity to conduct the proceedings themselves. Capacity is assessed by reference to the Mental Capacity Act 2005. In practice, such parties act through a litigation friend, often a family member or a court-appointed deputy, and any settlement reached on their behalf must be approved by the court in the same way as for a child.
Q What happens to the settlement money after approval?
The money is usually paid into the Court Funds Office to be invested and held until the child reaches 18 or, for a protected party, managed on their behalf by a deputy or receiver. The court can direct periodical payments, interim releases for specific needs, or structured arrangements depending on the circumstances. The aim is to protect the funds from being dissipated before they are genuinely needed.
Q Is Form N292 used for both personal injury and other civil claims?
Yes. While it is most commonly seen in personal injury and clinical negligence matters, Form N292 can be used in any civil proceedings where a settlement has been reached on behalf of a child or protected party and court approval is required. The apportionment sections referring to the Law Reform (Miscellaneous Provisions) Act 1934 and the Fatal Accidents Act 1976 are specifically relevant where the claim arises from a death.
Q What if the defendant misses the payment deadline in the order?
The draft order submitted on Form N292 typically provides for a further sum, often in the form of interest, to become payable if the defendant fails to pay by the stated date. Once the order is sealed, it carries the same force as any other court order, so the claimant can pursue enforcement action if payment is not made. The exact consequences will depend on the precise wording approved by the judge.
Q Does Form N292 deal with the claimant's legal costs?
It usually does. The form allows the agreed approach to costs to be recorded, often providing for the defendant to pay the claimant's reasonable costs into the Court Funds Office or directly to the claimant's solicitors by a specified date. Where costs are not agreed, the order may instead provide for them to be assessed. Getting this right avoids a separate costs dispute later on.
Q What evidence does the court expect at the approval hearing?
The judge will usually want to see counsel's written opinion or a note from the claimant's legal team explaining why the settlement is reasonable, along with medical evidence or other material relevant to valuing the claim. The draft order on Form N292 sits alongside that evidence. The aim is to give the judge enough information to decide whether the deal genuinely serves the protected person's best interests.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.
Sources
This guide is based on primary UK law and official guidance.
- Guidance · UK GovForm N292 on gov.ukgov.uk
- Guidance · HMCTSCivil Procedure Rules Part 21 (Children and Protected Parties)justice.gov.uk
- LegislationMental Capacity Act 2005legislation.gov.uk
Legal helpline
Unsure how an N292 settlement should be structured?
Court approval for a child or protected party brings extra layers that are easy to misjudge if you haven't been through the process before. An experienced legal adviser can talk you through how Form N292 fits into your situation based on what you describe on the call.
- A plain-English explanation of how the approval process works for what you describe
- Practical perspective on apportionment, costs and payment terms in your specific situation
- What to watch out for before the approval hearing in your case
- Clarity on your next steps and where the form sits in the wider procedure
Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.