Lord Chancellor’s compensation rate announcement a boost for injury victims

3rd March 2017

Lord Chancellor’s compensation rate announcement a boost for injury victims

Lord Chancellor Liz Truss has announced that the government will cut the discount rate for compensation awards from 2.5 per cent to minus 0.75 per cent, meaning those who suffer severe injuries will receive more in compensation. This is four years after a consultation on reviewing the rate closed in 2013.

The rate is used by courts to calculate compensation for future loss in personal injury cases. When victims of life-changing injuries accept lump sum compensation payments, the amount they receive is adjusted according to the amount of interest they can expect to earn by investing it.

Accordingly, when determining the compensation for future losses the, courts make a calculation using a figure based on the Discount Rate, also known as the Ogden Rate. This rate is set at a level to reflect the return available, on the lowest risk investments, typically index-linked gilts. That has been falling since the financial crash in 2008 and is currently -0.75%

The compensation award using the rate is meant to put the claimant in the same financial position had they not been injured, including loss of future earnings and care costs. Where a higher rate of return is used, the figure used to calculate future losses will be lower meaning that the money received by the injured person is unlikely to be sufficient and may well run out during their lifetime.

The announcement has been welcomed by the Association of Personal Injury Lawyers (APIL), of which Gotelee is a member.

APIL said it hopes the decision would mark a “long overdue turning point towards treating injured people fairly and with understanding”.

“It is not only the right thing to do, it takes the cost of caring for people away from the taxpayer and puts it squarely where it should be – with the person who caused the needless injury,” a spokesman said.

“People who suffer severe life-changing injuries can now be assured that the compensation needed to look after them is calculated correctly and is sufficient to provide care for the rest of their lives. It is what they need and deserve and APIL welcomes this recognition from the Lord Chancellor.

“But we must also note that this change is long overdue. People already coping with the most severe injuries have been deprived of the help and care they need for years.”

How can Gotelee help?

Our injury lawyers understand how traumatic it can be to suffer an injury through no fault of your own and our compassionate approach will ensure your claim is handled sensitively.

We can assess your claim quickly and advise whether or not we will be able to represent you and pursue your claim on a no-win no-fee basis.

We can meet you at your home, in hospital or at any of our Suffolk offices in Ipswich, Hadleigh, Felixstowe, Woodbridge or Melton.

To find out more, call Tim Humpage, Head of the Gotelee Solicitors Medical Negligence team, on 01473 298122 or email [email protected]

Practice Areas
Medical Negligence
Blog Posts

Would you let your child drink two coffees, each containing up to ten sugar cubes, before school every day?


For any responsible parent, the answer is no - yet, tens of thousands of…

Read More
Upcoming Events

The Great Framlingham Sausage Festival


Gotelee are proud to announce that we will be sponsoring the famous Great Framlingham…

Read More
News Posts

Civil partnerships extended to heterosexual couples – but do you know the legal implications?


The news that the Government is to allow heterosexual couples to enter into civil…

Read More


"Approachable, very efficient, always willing to take my calls and update me."

- SH

"We were very pleased to have Jade as our solicitor, the service was excellent and we felt kept in the loop which minimised stress"

- CT

"I have used Tracey Laflin at Gotelee on a number of occasions and in my opinion, she is simply the most efficient conveyancing solicitor I have ever worked with. From the outset, she took the time to understand my specific business requirements and to date, she has exceeded all of my expectations."

- Dale Fiddy - Portobello Developments Ltd

"I don't think this house sale would have pulled together without Jo's determination and expertise. Excellent!"

- MT

"Jade Shelton was absolutely fantastic!! Professional and proactive at all times."

- JH

"This is by far the go-to firm for any issues. You are made to feel valued from the outset and they are so confident in what they do. Wouldn't recommend any other. Thank you Hugh and Max."

- Ros Jones

"Domini was very fast and efficient in carrying out her work for me - she was also very good at explaining things to me"


"Prompt, helpful, polite and very professional service"


"The ease that we could access and speak to Pat Smith - Thank you"


"We found Rachel Dawson outstanding, polite, professional and caring."


Please select preferred method of contact

* We will only contact you by telephone if you select this as primary form of contact. All web enquiries will be stored on our website for 30 days.