In March of this year we commented in this blog on the decision by the Lord Chancellor, Liz Truss, to change the discount rate applied to personal injury compensation payments from 2.5% down to -0.75%. This move was welcomed by personal injury and medical negligence lawyers and organisations that fight for justice for victims of personal injury.
Shortly after the announcement, the Ministry of Justice issued a consultation document to interested parties in order to review the process managing the setting and application of the discount rate.
That consultation ended earlier this month and we now await the outcome of the review.
The three areas specifically under review are as follows:
• What principles should guide how the rate is set? (i.e. what factors should be taken into account when reaching a decision about the discount rate?)
• How often should the rate be set? (i.e. should there be fixed or flexible timing?)
• Who should set the discount rate? (i.e. should the Lord Chancellor continue to make this decision?)
The purpose of the discount rate is to ensure that claimants are fully compensated for their injury and losses, taking into account the effects of inflation and the possibility that the claimant might invest their compensation, thereby possibly earning interest.
Changes to the discount rate should reflect changes to the financial environment, thereby ensuring that the compensation award remains fair – no more and no less than full compensation.
Speak to a solicitor
If you have been the victim of medical negligence, contact Glynns Solicitors to discuss your experience. We will help you to assess if you can make a claim for compensation and support you throughout the process.
Please call us on 0800 234 3300 (or from a mobile 01275 334030) or complete our Online Enquiry Form.
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