Gordon Dalyell, treasurer of the Association of Personal Injury Lawyers (APIL) said:

“This is a crucial decision which has far-reaching consequences for injured victims of negligence. Even under the current rate of -0.25 per cent, we know that a third of people with life-changing injuries will not meet the costs of their necessary care and support. Any increase in the discount rate makes it more likely that more injured people will be undercompensated. Victims of negligence, who have already been through so much, should not have to face financial pressure to have their basic needs met.

“People with catastrophic injuries are particularly susceptible to the rising costs of living we’re seeing across the board, which includes increases to carer wages and the cost of specialist aids and equipment, for example. We’ll be interested to see the Lord Chancellor’s statement of reasons so we can assess how she has come to the conclusion of a 0.5 per cent personal injury discount rate for England and Wales.”