What is the difference between a strike out and a deposit order?

Although both can be used to remove parts of your case, they work very differently.

Strike out: the "red card"

A strike out (under Rule 38) ends all or part of your case immediately—with no hearing on that issue. It's only used where a claim has no reasonable prospect of success, abuses the process, breaches orders, isn't pursued, or prevents a fair hearing.

Deposit order: the "yellow card"

A deposit order (under Rule 40) lets your case proceed—but only if you pay up to £1,000. It's only used where a part of your claim has little reasonable prospect of success—a lower test than strike out.

If you do not pay the deposit then the claim or point it was made against is dismissed, and you cannot run it at final hearing.

If you succeed on the claim/point that the deposit order was made against, you will get the money back. However, if you lose that claim or point, you lose the deposit and, for the purposes of any costs award, you are presumed to have been acting unreasonably.