I would like to announce that I have now commenced a review of the personal injury discount rate, in line with my statutory duties.
The Damages Act 1996, as amended by the Civil Liability Act 2018, requires the Lord Chancellor to commence a review of the personal injury discount rate within five years of and including the date on which the previous rate was announced, which occurred on 15 July 2019. This is stipulated by schedule A1 to the Damages Act 1996, as inserted by section 10(2) of the Civil Liability Act 2018.
The Damages Act requires that I, in conducting the review, must consult (a) an expert panel, which has already been appointed for this review in June 2023; and (b) HM Treasury. Both consultees are then required by the Act to respond to my consultation within 90 days.
In accordance with these statutory requirements, I commenced this review on 15 July 2024, with the consequence that I must conduct the review and make the determination regarding the rate on or before 11 January 2025. On that same day I sent letters to the expert panel and HM Treasury to begin their period of consultation. I have also deposited copies of the terms of reference for their respective consultations in the Libraries of both Houses of Parliament.
I will make a further announcement on the completion of the review.
[HCWS4]