Personal Injury: Compensation

(asked on 1st March 2017) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health, what discussions he has had with the Secretary of State for Justice on changes to the personal injury formula.


Answered by
Philip Dunne Portrait
Philip Dunne
This question was answered on 6th March 2017

Under the Damages Act 1996, the Lord Chancellor has the power to set the discount rate. Before deciding what the rate will be, the Lord Chancellor must consult the Treasury and the Government Actuary. Both were properly consulted. Legally, the Lord Chancellor cannot consider the financial implications of a rate change on defendants, whether public or private sector, when setting the rate.

The Secretary of State for Justice spoke to the Secretary of State for Health before making her decision.

Medical indemnity in secondary care is provided by the NHS Litigation Authority (NHS LA). General practitioners (GPs) are responsible for securing their own indemnity cover, primarily through mutual organisations called Medical Defence Organisations .

The Government will adjust the NHS LA's budget to meet the additional costs associated with the change in the discount rate, and ensure that appropriate funding is available to meet additional costs to GPs.

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