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Consultation Outcome Published 30 Mar 2017 Ministry of Justice ↗ View on GOV.UK

Damages Act 1996: the discount rate: review of the legal framework

We are seeking views on how the discount rate of damages or compensation for personal injury claims is set and how the money is paid.

Opened 12 Feb 2013
Closed 7 May 2013
▤ Verbatim text from source document

This consultation paper seeks views on 2 subjects relating to the setting of the discount rate under section 1 of the Damages Act 1996:

  • Whether the legal parameters defining how the rate is set should be changed
  • Whether there is a case for encouraging the use of periodical payment orders instead of lump sum payments

Please note: the consultation paper was revised on 5 March 2013 to correct an error in paragraph 79. This paragraph stated that there could be around 1800 periodical payment orders being made annually. It now states that there could be about 200 to 250 periodical payment orders being made annually.

This consultation is aimed at:

  • citizens
  • litigants
  • legal professionals

This is a joint consultation produced by the Ministry of Justice, the Scottish Government and the Department of Justice, Northern Ireland.