header-logo header-logo

Full compensation & the discount rate (Pt 2)

13 October 2017 / Julian Chamberlayne
Issue: 7765 / Categories: Features , Personal injury
printer mail-detail
nlj_7765_chamberlayne

Julian Chamberlayne discusses the factors that need to be considered when setting the new discount rate

 

  • Longevity, prices and earnings inflation all compound the investment risk that claimants face under the MoJ’s planned change to setting the discount rate.

On 7 September 2017, the Lord Chancellor, David Liddington, laid draft legislation before Parliament incorporating a proposed new methodology for setting the discount rate by which future losses for those with long-term injuries will be compensated. In the first of this two-part series I considered what proportion of seriously injured claimants should we as a society be prepared to accept will be under compensated while still claiming to maintain a framework of laws that provide for 100% compensation. Here, I look at some of the key factors beyond investment risk that ought to be considered by the Lord Chancellor when setting the new rate.

The Ministry of Justice’s (MoJ’s) new methodology is said to be based on how claimants actually invest, derived from evidence gathered during the consultation. However,

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

NLJ Career Profile: Maria Karaiskos KC, Church Court Chambers

NLJ Career Profile: Maria Karaiskos KC, Church Court Chambers

Maria Karaiskos KC, recently appointed as the first female head of Church Court Chambers, discusses breaking down barriers, the lure of the courtroom, and the power of storytelling

Bevan Brittan—Bethan Gladwyn

Bevan Brittan—Bethan Gladwyn

Housing management team expands with specialist partner hire

Ionic Legal—Tania D’Souza Culora

Ionic Legal—Tania D’Souza Culora

Brand protection and IP disputes expertise strengthened with partner hire

NEWS
In a special tribute in this week's NLJ, David Burrows reflects on the retirement of Patrick Allen, co-founder of Hodge Jones & Allen, whose career epitomised the heyday of legal aid
Michael Zander KC, Emeritus Professor at LSE, tracks the turbulent passage of the Terminally Ill Adults (End of Life) Bill through the House of Lords in this week's issue of NLJ. Two marathon debates drew contributions from nearly 200 peers, split between support, opposition and conditional approval
Alistair Mills of Landmark Chambers reflects on the Human Rights Act 1998 a quarter-century after it came into force, in this week's issue of NLJ
In his latest Civil Way column for NLJ, Stephen Gold surveys a raft of procedural changes and quirky disputes shaping civil practice. His message is clear: civil practitioners must brace for continual tweaks, unexpected contentions and rising costs in everyday litigation
Barbara Mills KC, chair of the Bar 2025 and joint head of chambers at 4PB, sets out in this week's NLJ how the profession will respond to Baroness Harriet Harman KC’s review into bullying, harassment and sexual misconduct at the Bar
back-to-top-scroll