Kim Harrison, president of the Association of Personal Injury Lawyers (APIL) said:

“Following this review injured people will receive less compensation in real terms than they did in 2021 when the tariff was introduced. A 15 per cent increase is not enough. If the Lord Chancellor were simply to increase the actual tariff, as introduced, in line with inflation using the Consumer Price Index, rather than making convoluted predictions about future inflation, the increase to damages in the tariff would be 22 per cent.

"Increases in inflation have been eroding injured people’s damages since the tariff was introduced, a tariff which was set at an insulting, arbitrary level to begin with. The outcome of this review has made an unjust situation even worse.

"An inflationary increase to reflect how prices have gone up in reality over the past three years is the very least injured people needed. It seems they continue to be the whipping boys for the cost of car insurance premiums. The facts are that since the tariff came into effect, the number of claims has plummeted, the cost of injury claims to insurers has nosedived, and yet motor premiums have continued to rise. We look forward to seeing HM Treasury’s conclusions when it reports on the effects of the 2021 reforms on policyholders, as required by the Civil Liability Act.”