Today, Lord chancellor Liz Truss announced that the discount rate applied to personal injury compensation payments will be slashed to -0.75%. The new rate, reduced from the current 2.5%, comes into effect on 20 March. It is the first amendment to the rate since 2001.
This news is welcomed and in response, Sarah Stanton, Partner at Moore Blatch, said:
“We are pleased the Lord Chancellor has made the long overdue decision to reduce the discount rate for future losses in catastrophic injury claims. The change will make an enormous difference to Claimants with life changing injuries, particularly given that interest rates have been low for several years. At a time when there are wide ranging reforms proposed to the way personal injury and clinical negligence claims are funded, today’s news will be welcomed by the most seriously injured Claimants.”
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