Do not be put off - such schemes are informal and generally inexpensive. But arbitration may not necessarily be cheaper than going to court under the small claims procedure . Check what fees you will be expected to pay if you lose the case. In conciliation , the idea is to enable the parties to settle their differences themselves. It does not result in a legally binding decision, and if you are not satisfied with the outcome, you can go on to arbitration, or to court.
Arbitration is more like going to court, and is very straightforward.
The arbitrator or arbiter will be independent and an expert in the particular field concerned, and may be a member of the Chartered Institute of Arbitrators. Arbitration is often done in writing. If you feel happier putting your case in person, you should consider using the small claims procedure in the County Court. You have to choose between court and arbitration - you cannot do both. Under the Arbitration Act 1996, a clause in a contract which says that you have to go to arbitration cannot bind you provided the value of your dispute is not greater than the small claims limit.