Justice Secretary announces Civil Liability Bill

Justice Secretary announces Civil Liability Bill


The Justice Secretary, David Gauke, announced on 20 March 2018 that he will unveil the Civil Liability Bill which will include changes to compensation for whiplash claims including:

  • setting fixed amount of compensation for whiplash claims and
  • banning the ability to seek or settle whiplash claims without medical evidence.

Of great significance the Bill is also set to introduce changes to the methodology for calculating the discount rate.  Apparently the recommendations of the Justice Committee have been broadly accepted, the Bill is anticipated to include methods for:

  • setting the rate with reference to “low risk” rather than “very low risk” investments and
  • establishing regular reviews of the discount rate – within 90 days of a change and at least every 3 years; and
  • an independent panel of experts to advise the Lord Chancellor on the setting of any rate.

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