Oral Answers to Questions

John Pugh Excerpts

Tuesday 7th March 2017 Commons Chamber

[Dr Lee]

It is not about ruling out whether private or public organisations should provide care in the youth justice system. I point out to the hon. Gentleman that the original contract for Oakhill was signed in 2005, and the terms of the contract were set then.

[John Pugh (Southport) (LD)]

3. What assessment the Government have made of the effect of recent changes in the discount rate for compensation for accident victims on the level of insurance premiums.

[The Lord Chancellor and Secretary of State for Justice (Elizabeth Truss)]

As Lord Chancellor, I made a decision to lower the discount rate. Not to have done so would have been unlawful. Under the law, I may only consider the impact on victims, not defendants. As I have said, the system needs to be reformed, because I do not think it is right that a discount rate is set on an ad hoc basis by the Lord Chancellor.

[John Pugh]

Another organisation affected, to the tune of £1 billion, is the NHS. What discussions has the Lord Chancellor had with the NHS Litigation Authority on this topic?

[Elizabeth Truss]

I have spoken to my right hon. Friend the Health Secretary to discuss the implications for the NHS. As I said, under legislation the Lord Chancellor must only consider the impact on the victim. I do not think the procedure works in the right way, which is why I will shortly bring forward a consultation on a better way to set the discount rate.