Ministry of Justice sets new personal injury discount rate at positive 0.5%
The Lord Chancellor, Rt Hon Shabana Mahmood MP, has announced a new personal injury discount rate of positive 0.5% for England and Wales, to be effective from 11 January 2025. This new rate will be applied when calculating lump sum compensation payments for future financial losses in personal injury cases. The Lord Chancellor concluded that it would be inappropriate to adopt a dual or multiple rate at this review and that the rate should be set at a single rate of positive 0.5%. This decision follows a comprehensive review process under the Damages Act 1996, which included two Calls for Evidence, consultation with statutory consultees and evidence from an independent expert panel. A Statutory Instrument will be laid in Parliament to implement this change. A full statement of reasons has been made available.