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Select committee: Justice Committee

Small claims limit for personal injury inquiry

Closed Opened 5 Dec 2017 Closed 8 Oct 2019

Justice Committee Inquiry on parliament.uk ↗

Inquiry scope (the committee's words)
In this report we consider the impact of raising the small claims limit for personal injury (PI) from £1,000 to £2,000, and to £5,000 for RTA-related PI claims—part of a package of reforms that includes separate measures contained in the Civil Liability Bill. We look at the reforms that have already been made to the claims process for personal injury; the Government and industry response to insurance fraud; the potential impact of raising the small claims limit on different types of personal injury claim; and the impact of doing so on the judiciary and the courts. We also examine the Ministry of Justice’s proposals for implementing the small claims reforms, and consider the impact of increasing the small claims limit on different organisations that assist claimants.

Where it stands

The inquiry is closed, opened 5 December 2017.

The committee has published 1 report, most recently 7th Report - Small claims limit for personal injury on 17 May 2018.

The government's response

Published 8 August 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 recommendation to delay implementation, but maintains its plans to raise the small claims limit to £2,000 for personal injury claims and £5,000 for road traffic accident related claims.

  • On timing, the government now proposes the platform be "ready for large-scale testing by October 2019", with the whiplash measures, including the £5,000 limit, implemented "fully in April 2020".
  • On the limit for non-RTA claims, it is "satisfied" that £2,000 is in line with inflation, and it is the government's view that employer and public liability cases "should remain in the fast track".
  • On vulnerable road users, the government is "sympathetic to the argument" for exclusion and "is further considering this matter and will return to it in due course".
  • On premium savings, it will "develop an amendment" to be tabled in the House of Commons providing "an effective means for reporting" on the insurance sector's commitment to pass on savings.

Read the government's response ↗ Report an error

Reports

All reports

Evidence

  • 1 oral evidence sessionLatest 16 January 2018
All evidence

Recent activity

Reports

1 report

Oral evidence sessions

1 session

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Date Session and witnesses Source
16 Jan 2018
Oral evidence session
No witnesses recorded 		View ↗