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Personal Injury Discount Rate Consultation


Following a threat of legal action from the Association of Personal Injury Lawyers (APIL), the government is to announce the findings of its consultation into the discount rate for personal injury claims.


The discount rate is applied to a lump sum of damages awarded to personal injury Claimants to ensure that they are not over compensated. It takes relates to the amount deducted from the Claimant’s compensation to take into account any income from low risk investments of the awarded damages.

Personal Injury Damages Discount Rate

Since 2010, the rate has been set at 2.5% based on yields generated by ILGS (index-linked government stock). However, APIL has argued that as yields have declined due to changes in the economy, the rate is now set too high, and as a result it believes that many Claimants are now being under compensated.

The consultation into the discount rate was issued by the MoJ in August 2012, with a further consultation released in February 2013. The first consultation considered how the rate should be set, with the latter relating to the legal framework.

However, following pressure from APIL, the government confirmed that it will now publish its findings at the end of January 2017.

Calculating Special Damages in Personal Injury

Our team of forensic accountants assist personal injury practitioners in assessing the quantum elements of all types of case in relation to special damages. The results of the consultation into the discount rate will naturally have an impact on how the assessment of a client’s damages are analysed going forward.

If your client has a loss of earnings, loss of pension or loss of dependency element that requires consideration, you can discuss the case with our experienced team of forensic accountants in order to establish the accurate level of loss.

To discuss a case on a no obligation basis, call us on 0113 387 5670, email us at or fill out an Enquiry Form and we will contact you directly.