Have things changed?
The only time I've gone through the Small Claims Track of the County Court, (I was the plaintiff, not the defendant and it was thirty years ago), legal fees / costs couldn't be claimed - it was what underpinned the whole premise of the system, no highly inflated solicitor bills.
I see from the OP's screenshot that there's £50 added for legal costs?
The basic principle has not changed. In the small claims track solicitor’s fees are not generally recoverable, each side normally bears their own costs.
What you are seeing is one of the limited fixed costs permitted by the Civil Procedure Rules. There are two separate £50 categories. First, CPR Part 45 and Practice Direction 45 Table 1 allow a fixed
commencement cost of £50 when a claim is issued in the County Court, which is why it appears on the N1SDT claim form.
Second, CPR 27.14(2)(a)(ii) allows the court to award
up to £50 for legal representation if a representative actually attends the final hearing, should it ever get to that point, which is unlikely in most of the cases we dealt with here. That second £50 would only even be considered if the claimant won and the defendant lost, and it is capped at £50 regardless of the solicitor’s bill.
Neither of these entitlements opens the door to inflated solicitor’s fees. The small claims regime still prevents recovery of general legal costs, except for court fees, capped witness expenses, and costs for unreasonable behaviour under CPR 27.14(2)(g).