The Ministry of Justice has just announced changes to compensation payments that are likely to lead to victims of personal injury and medical negligence receiving larger payments in order to cope with future, on-going care costs.
Traditionally, when compensation payments for personal injury are calculated, they are reduced by a set ‘discount rate’ due to the fact that the compensation sum could be invested and thereby earn interest for the victim.
However, it has long been argued that inflation more than compensates for any interest earned and that victims have suffered financially as a result of this discount. It has additionally been pointed out that, because victims of personal injury or medical negligence may have to rely on their compensation payments for the rest of their lives, they are unlikely to be tempted by high-yield but risky investments.
Consequently, Liz Truss, the current Lord Chancellor has decided to change the current discount rate of 2.5% to – 0.75% as of 20th March 2017.
This move has been welcomed by the Association of Personal Injury Lawyers (APIL) with the comment that “people already coping with severe injuries have been deprived of the help and care they need for years.”
Although this change is likely to add considerably to the NHS bill for medical negligence, the government is committed to providing the NHS with sufficient funding to cope with the change.
Speak to a solicitor
If you feel you may have been the victim of medical negligence, contact Glynns Solicitors now to discuss your circumstances.
Please call us on 0800 234 3300 (or from a mobile 01275 334030) or complete our Online Enquiry Form.
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