Future losses

Future losses

NOTE: On 2 December 2024, the Lord Chancellor announced that the discount rate would change to positive 0.5%. The positive 0.5% discount rate is effective from 11 January 2025. Schedule A1 to the Damages Act 1996, as inserted pursuant to Part 2, section 10 of the Civil Liability Act 2018, provides that subsequent reviews are to take place within five years of the conclusion of the previous review which means that the next review must commence on or before 2 December 2029.

Recoverable future losses

In assessing future losses the court will award the claimant a lump sum which will take into account the general contingencies of life and the accelerated receipt of a sum which is available for investment. To achieve this the court will calculate a multiplicand and apply a multiplier. The principle heads of future loss are for earnings, pension, accommodation, the cost of care and services and future medical treatment and transport aids. The court is also under a duty to consider whether a claim is suitable for a periodical payments award.

For further guidance, see Practice Note: Recoverable future losses.

The

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