The Government confirmed on 21 June 2011 in its new Legal Aid, Sentencing and Punishment of Offenders Bill that it will implement Lord Justice Jackson's recommendations to end recoverability of conditional fee agreement (CFA) success fees and after the event (ATE) insurance.
Currently, if a successful litigant has a CFA it can recover the success fee payable under that CFA from its opponent, and if a successful litigant has taken out ATE insurance to protect itself from an adverse costs order, it can similarly recover that from its opponent.
The Bill and explanatory notes can be found on the Parliament website: http://services.parliament.uk/bills/2010-11/legalaidsentencingandpunishmentofoffenders.html