On 7 September 2017 measures to change the way compensation payouts are calculated have been unveiled by Lord Chancellor David Lidington.
The reforms will make sure personal injury victims get the right compensation – and could also see significant savings for motorists through lower car insurance premiums and the NHS.
The discount rate is the percentage used to adjust compensation awards for victims of serious personal injury, according to the amount they can expect to earn by investing it.
The adjusted awards should put claimants in the same financial position they would have been in had they not been injured – they should receive neither more nor less than 100% compensation.
The announcement follows a pledge made by Ministers in February to consult on whether there was a fairer way to set the “discount rate” in future.