fbpx Skip to main content
CALL US: 01482 323 697
Williamsons News
News

A Proposed Rise In The Discount Rate May Leave Vulnerable At Risk

12 April 2013

News, Personal Injury

Helen Grant (The Parliamentary Under-Secretary of State for Justice) has indicated that in the future those who have suffered the most severe personal injuries may have to risk losing the damages that they have received.

When an injured person is awarded a lump sum which includes losses that they will incur in the future (such as the cost of medical treatment, the costs of care and financial losses, such as loss of wages) the Court will apply a “Discount Rate” to reflect that the lump sum can be invested, and the income produced by that investment may lead to the injured person being over-compensated.

Since 2001 the Discount Rate has remained at 2.5%. In 2010 the Association of Personal Injury Lawyers (APIL) requested that the Discount Rate be reviewed as over the previous three years the return on Gilt investments (a Government bond, which is one of the safest of investments) had been 1.05 per cent and those with the most serious injuries, who received the biggest compensation awards, had lost the most. APIL recommended that the Discount Rate should be reduced in order to reflect the poor return from investments. In February 2012 an APIL spokesman explained a new rate was a ‘matter of urgency’ for some injured people under-compensated by hundreds of thousands of pounds. After APIL threatened to bring a judicial review regarding the Discount Rate, a decision was taken by the Lord Chancellor to review the Discount Rate.

In February this year, contrary to APIL’s findings, Helen Grant indicated that initial evidence may actually support a rise in the Discount Rate used to calculate deductions from compensation awards.  The ministry of Justice has commented that there was evidence that recipients of lump sums ‘do not invest in the cautious way that is envisaged by the guidelines’ and went on to say that ‘The initial evidence indicates [successful claimants] seem to invest in mixed portfolios, including higher risk investments’.

The comments from the Ministry of Justice are an obvious concern for the victims of personal injury. An increase in the Discount Rate will force those who have suffered the most severe injuries to invest their damages in higher risk investments in order to meet the cost of their future care and medical needs. The Government should not be forcing victims to move away from cautious investment, as a bad investment could leave a severely injured person with insufficient funds to pay for their ongoing needs.

There is an ongoing consultation regarding the review of the Discount Rate, and the latest consultation paper can be found here.

The consultation closes on 7th May 2013.


Contact Us Back to top
Read some reviews from our clients

4.90 Average

191 Reviews

Miss S

Excellent service from Beth Dyson despite all the pressures of the Covid lockdown. Beth carried out conveyancing of my sale and purchase very thoroughly and efficiently with good communication and always in a helpful and friendly manner. Many thanks.

Joanna H

Well from the moment I met Wayne Walker his professionalism,clarity of thought, and aim to do the best job he can were all evident. He has been involved with my family for five years nearly and has always made me feel as though my views were relevant and integral to furthering the case. Wayne has highly developed organisational skills and we always felt just ‘looked after’ by Wayne snd Williamsons in getting through the very worst of times. Wayne sometimes needed to encourage me to look at things from a different perspective and he always achieved this with firm kindness. Wayne is a great professional but more importantly a fundamentally great human being. I will always recommend Williamsons and especially on the subject of clinical negligence I will always recommend Wayne. Full job well done start to finish. Thanks Wayne there are no words. Jo Hogg (Polly’s mum)

Anonymous

Williamsons Solicitors supported our family to succeed to a very high level. We cannot thank Sarah Jackson enough for her incredible support, dedication and commitment to understanding the finest detail of our case. Her dedication was phonememonal and we wouldn't hesitate to recommend her in a heartbeat. Thank you for bringing closure to our case and for supporting us one hundred percent. We were informed at every stage within the case and knew we were in safe professional hands throughout. Many thanks, Mr and Mrs Appleton.

Asoka T

Very professional and a friendly team, specially Helen Lennon who handled my case.

Carl R

I was very happy with the way they handled my case and still got the result even in these hard times where having at the moment thank you to all involved and I’d recommend you to others

Angie L

Williamsons solicitors were professional, caring and efficient. They dealt with what was, a very upsetting experience I had via medical negligence. They kept me up to date, enquired about my well-being and were always available to either speak to me when I had concerns or answered my emails. They ensured that the compensation I finally received was in my best interests by advising what they thought was a too low first offer of settlement. I cannot thank them enough for the way they handled my case and for pushing for a better higher settlement figure. I would definitely use them again should I ever be in a position to need them Thank you so much.

Suzanne W

Would definitely recommend this company, very knowledgeable on all aspects. Extremely helpful with a caring and kind approach, made me feel at ease and comfortable. I was always kept informed at every stage of my case Very happy and would 100% use them for any other matter if needed Thankyou

Mrs Baker

Excellent service, made to feel very welcome, looked after from the very first minute.. would highly recommend to anyone looking for conveyancing on a property or setting up a will.

Mr W F

alison craven, provided excellent service and went above and beyond to make sure my will was sorted quickly with this current situation we find ourselves in. great,proffessional work.

Anonymous

Used them a few times for conveyancing and this time, for our Wills. Excellent service as always.

Mr Longhorn

Very helpful and supportive and kept me informed all through the process; it went very smoothly and that owes a lot to how they managed it in such a professional manner

Mr and Mrs Hutson

Throughly pleased with all aspects of the service, always updated on every change, or new information regarding the sale of our house and purchase of the new property. Everything went smoothly and couldn't fault the attention to detail and customer service. Thank you to Beth and all who assisted in the process.

Gary R

Efficiency, friendly and supportive Karen Saunders gave excellent advice with no nonsense answers to my enquires and difficult decisions

Mr Adams

Efficient and friendly from start to speedy finish

Sue W

In May 2017 after a long & painful road of recovery wich is still ongoing today. I finally plucked up the courage & decided to approach Willams Solicitors as I felt that there was something very wrong with the poor service i received in March 2015 from 1 1 1. Having made two calls over the weekend. Inspite of right leg being in immense pain & stone cold I was told that i had probably pulled a muscle nothing they could do for me & to visit my GP So after a weekend of struggling with pain i visited my GP to be rushed to Hospital with absent pulses in the right foot. On examination there was a blood clot on my right knee caused by Critical ischaemia nothing whatsoever to do with a pulled muscle. I was told i needed a thrombosis procedure to dissolve blood clot if this was unsuccessful they would have no other choice than to amputate below the right knee I was devastated Thanks to this amazing solicitors who advised me that they felt 1 1 1 had possibly been neglectful & would like to take my case on. With an outstanding Nick Gray becoming my solicitor & the amazing team of experts including Julian Matthews an absolutely brilliant barrister Vascular surgeons experts Professor sir Peter Bell & Professor Shearman who were also amazing in highlighting the Hospital were neglectful as well & need not of removed my leg & could have avoided amputation. All of the other team of experts who helped with this case as well were very good In fact I had a fantastic team i couldn't fault Williams solicitors at all. They proved all 3 defendants to be negligent & they got me an amazing settlement far more than I could ever dreamed of & in a short space of time A huge thanks to Nick Gray & his fantastic team inside & outside Williams I can start rebuilding my life knowing I can afford to have & get the very best in making life a lot easier. I can't have my leg back but I can now smile again knowing life won't be a struggle. I would strongly recommend this Solicitors to anybody who needs a professional honest caring & worth every penny Solicitor you will not be disappointed. Once again a massive Thank you to Nick Gray & all his team ❤ Sue Willoughby

Mrs Pannhausen

Very impressed with Suzanne, Beth & Natalie at the Bridlington Branch, they give 100%, will use them again & recommend them to friends & family.

Mr and Mrs Preston

Williamson’s provide an excellent service at a reasonable price. Very easy to deal with and excellent communication was provided all the way through the transaction. Just what you need in a solicitor.

LJM B

I would highly recommend Williamsons Solicitors, Gordon represented me for my case and was excellent. Always on the end of the phone when I need him. overall top job thankyou. Mr Lloyd Milner

Mr & M

Very friendly and efficient service always replying to any queries and emails on the same day. If solicitor not in still dealt with by other staff. Would definitely recommend and will use again

Mr Andrew W

They have handled my house moving with professionalism and friendliness and kept in touch regularly to keep me updated I would strongly recommend them 👍

Mr Deeley

Very good service from everyone I dealt with at Williamson's. They were very quick and responsive and gave that extra push to get me completed before the Christmas holiday! A very nice Christmas present for me!