The Government has, once again, completed a review of the Discount Rate. This is the rate used by all parties in a personal injury/clinical negligence action when quantifying future losses.
Historically, the figure used to be 2.5%. The Government then reduced it to -.75%, which brought about considerably higher awards for Claimants. The paying parties were up in arms about the substantial reduction. In reality, the reason for the considerable reduction came about because the Government had delayed reviewing matters for many years.
The general consensus of opinion (particularly on behalf of the paying parties) was that the figure would be increased to +.5 or 1%, which would have substantially reduced settlements for Claimants.
In the event, the Government completed its review on the 15th July, 2019 and has set the figure at -.25%. This is a modest reduction from the existing rate and has been welcomed by Nalders, the Association of Personal Injury Lawyers and others institutions that represent Claimants, both in personal injury and clinical negligence cases.
The level of the discount rate is very important in calculating damages and the difference between some claims at 1%, as opposed to -.25%, can literally mean hundreds of thousands of pounds.
If you believe you have a claim for damages for personal injury or clinical negligence, please contact our George Owens, on 01726 879333.