Personal Injury Discount Rate – Call for Evidence

April 17, 2023

The Ministry of Justice has recently called for evidence on proposed changes to the current discount rate.

Chris Barnes KC from Exchange Chambers has provided a formal response to that call for evidence himself, in addition to assisting with the replies of a number of other organisations. A copy of that response can be found here.

In summary, he takes issue with the premise of the call for evidence – specifically that a single discount rate can result in unfairness to claimants – and notes that the adoption of multiple discount rates would result in inappropriate complexity; would discriminate against those with a mental disability; would have the consequence of substantially increasing both legal costs and the costs of administering settlements through the Court of Protection; would lead claimants to take risks with their compensation that they can ill afford; and would be better addressed by the more widespread use of PPOs.