Personal Injury Payouts To Go Up By 10%!

30 Jul, 2012


Yep, you heard… compensation payouts for everything from whiplash compensation to accidents at work will be awarded 10% more damages.

“We take this opportunity to declare that, with effect from 1 April 2013, the proper level of general damages for pain, suffering and loss of amenity in respect of personal injury, nuisance, defamation and all other torts which cause suffering, inconvenience or distress to individuals, will be 10 per cent higher than previously,”; said Lord Judge, the Lord Chief Justice, in a Court of Appeal judgment handed down on Thursday.

There is another, yet unmentioned by us, aspect to this though. That is that winners of compensation claims will now have to pay a success fee from their damages.

But the recently passed Legal Aid, Sentencing and Punishment of Offenders Act 2012 changed the funding of cases so that the winners now have to pay the success fee out of their damages award. In addition, the fee will be capped at 25 per cent rather than 100 per cent of usual rates….More at Damages in personal injury and defamation cases to rise by 10% –

This is unlikely to make a difference to any clients or potential clients of though as after payment of the success fee, the amount of compensation awarded will likely be roughly the same as it would be today.

This move is rumoured to be an attempt to lower the amount of compensation paid out by bodies such as the NHS as the current ‘no win, no fee’ claims typically demand higher costs from solicitors.

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