Responding to the Ministry of Justice’s announcement on the discount rate Peter Todd, personal injury specialist who has also advised the Association of Personal Injury Lawyers (APIL) on the discount rate for a number of years, says:
The government has taken the historic decision to reverse that landmark ruling made in Wells by the House of Lords and will now require injured people to gamble their compensation in investments with risk in order to be able to fund (in particular) the future care they need. Whilst many claimants succeed in their investment risks, inevitably some will fail, and will now no longer have a guaranteed safe, secure and dignified future.
The Conservative government has prioritised the insurance industry’s profits over the secure and dignified future of injured people. It remains to be seen whether they can find a Parliamentary majority to enact the proposed new legislation.