3rd Report - Pre-legislative scrutiny: draft personal injury discount rate clause
- HC No.
- HC 374
- Published
- 30 Nov 2017
- Items
- 0
- Government response
- Government response published 20 April 2018. Read the government's response ↗
Select committee: Justice Committee
Pre-legislative scrutiny: draft personal injury discount rate legislation inquiry
Closed
Opened 14 Sep 2017
Closed 8 Oct 2019
Justice Committee Inquiry on parliament.uk ↗
Inquiry scope (the committee's words)
Report: Pre-legislative scrutiny: draft personal injury discount rate clause (PDF 603KB) Report: Pre-legislative scrutiny: draft personal injury discount rate clause Read the Government response The Government proposes to maintain the principle that claimants should receive 100% compensation for losses they incur. It proposes that the discount rate applicable to lump sum damages invested by claimants should no longer be set with reference to returns from Index Linked Government Securities. Instead the draft legislation provides that the discount rate should be set on the assumption that claimants will invest lump sums in "low risk" investments, and having regard to actual investments made by claimants.
Where it stands
The inquiry is closed, opened 14 September 2017.
The committee has published 1 report, most recently 3rd Report - Pre-legislative scrutiny: draft personal injury discount rate clause on 30 November 2017.
The government's response
Published 20 April 2018.
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government welcomes the Committee's report and states that it has chosen to adopt many of its recommendations, while not accepting the view that its evidence is insufficient to justify the proposed reforms.
- It accepts that the expert panel should take part in the first review, that the Lord Chancellor should give reasons for the rate, that the panel's report should be published, and that the panel quorum should be four.
- It does not accept that its evidence is insufficient, and does not consider that reform "should be delayed pending a further evidence gathering exercise". It also considers a power to amend the statutory assumptions "undesirable in this instance".
- It commits to seek further evidence for the first review, including a further call for evidence and further analysis commissioned from the Government Actuary's Department.
- It declines to specify that the rate should sit in the lower part of the range or to target median compensation, and says it will prepare impact assessments to accompany secondary legislation every time the rate is changed.
Reports
All reportsEvidence
- 1 oral evidence sessionLatest 1 November 2017
Recent activity
- Government Response to the Committee’s Third Report Pre-legislative scrutiny: draft personal injury discount rate clause20 April 2018, Report published
- Correspondence with Rory Stewart MP, Minister of State for Justice, Ministry of Justice, relating to the Committee’s Third Report of session 2017–19 on Pre-legislative scrutiny: draft personal injury discount rate clause27 February 2018, Correspondence
- 3rd Report - Pre-legislative scrutiny: draft personal injury discount rate clause30 November 2017, Report published
Reports
Oral evidence sessions
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| Date | Session and witnesses | Source |
|---|---|---|
| 1 Nov 2017 |
Oral evidence session
No witnesses recorded
|
View ↗ |
Correspondence
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