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New discount rate for PI claims announced

27 February 2017

As all PI litigators are aware, when victims of life-changing injuries accept lump sum compensation, the actual amount they receive is adjusted  down to take into account of the potential for investment gains following accelerated receipt of damages.

The discount rate has been set at 2.5% for over 15 years, during which time interest rates and gilt returns have plummeted. The government has today, announced, it is being reduced to minus 0.75%. This will have the effect of increasing awards for personal injury and clinical negligence cases.
The full press release is available here

 

 

 

 
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