Government raises whiplash compensation tariffs by 15%, sparking criticism from personal injury lawyers who say it fails inflation benchmarks.
Shabana Mahmood, Lord Chancellor and Secretary of State for Justice, has announced the conclusions of the first statutory review of the Whiplash Injury Regulations 2021. The government has outlined adjustments to the controversial tariff for whiplash injuries and related claims.
In her statement to Parliament, Mahmood said the existing structure for whiplash compensation will stay mostly the same. There are two parts to the tariff: one for whiplash-only injuries and one for whiplash with minor psychological injuries (such as anxiety). These will not change. However, the amount of compensation will go up by about 15% to account for inflation since 2021 and to include forecasted inflation until May 2027, when the next review is expected.
Despite this adjustment, no changes will be made to definitions of medical evidence or the judicial uplift of up to 20% for exceptional circumstances.
The decisions aim to strike a balance between fair compensation for claimants, and a wider-reaching goal of cost containment in the insurance market.
The official report has been formally submitted and made available for Members of Parliament (MPs) and Lords in both Houses of Parliament. Further consultations, including with the Lady Chief Justice, will need to take place for the Lord Chancellor to determine when these changes will be implemented.
APIL criticises tariff increase as insufficient
The Association of Personal Injury Lawyers (APIL) has decried the 15% increase, arguing that it will leave injured people worse off in real terms than when the tariff began in 2021.
Kim Harrison, APIL president, stated, “A 15% increase is not enough. If the Lord Chancellor were simply to increase the actual tariff, as introduced, in line with inflation using the Consumer Price Index, rather than making convoluted predictions about future inflation, the increase