In reply to Wonrek:
Employment disputes are now more expensive and I suspect the £500 (which is just for the advice) will increase as there are alot of fixed fees.
Basically the system was becoming flooded with alot of spurious claims and the govt upped the costs as a deterrent for claims.This seems to have worked as it has put alot of ambulance chasing employment solicitors out of business or on the margins.
I suspect that if you got to Citizens Advice you will still have to pay these fees.
If they have offered a settlement just try and negotiate an upward figure without involving a solicitor.An extra £500 would be a target amount.