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Personal Injury Discount Rate Under Review

The Personal Injury Discount Rate (PIDR), which has recently increased in Scotland and Northern Ireland, is under review in England and Wales.

The PIDR is used in serious personal injury cases where damages are paid as a lump sum but are intended to meet an injured person's needs over many years. It is an important mechanism in fulfilling the common law principle that a claimant should be fully compensated for their injuries, including for their future financial needs.

Under the Damages Act 1996, it is the duty of the Lord Chancellor to set the PIDR. The Act was amended by the Civil Liability Act 2018, requiring a review to be conducted every five years.

The PIDR is currently -0.25 per cent in England and Wales, but is likely to be increased in line with rising returns on investments. The rate in Scotland and Northern Ireland increased to +0.5 per cent (from -0.75 per cent in Scotland and -1.5 per cent in Northern Ireland) with effect from 27 September.

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