Guidance

Personal Injury Discount Rate

Information about the Personal Injury Discount Rate review 2024.

From:
Ministry of Justice
Published
22 June 2023
Last updated
2 December 2024 鈥� See all updates

Applies to England and Wales

The Personal Injury Discount Rate (PIDR) is an important mechanism in fulfilling the longstanding common law principle that when someone is wrongfully injured, they receive full damages, including for their future financial needs.

It is a percentage figure used to help calculate how much defendants have to pay in damages to claimants in serious, life-changing personal injury cases, when the damages are paid in the form of a lump sum. It is the duty of the Lord Chancellor under the Damages Act 1996 (the Act) to set the PIDR.

Part 2 of the Civil Liability Act 2018 (CLA) amended the Act to stipulate that the Lord Chancellor must conduct a review of the rate every five years. The CLA also specifies that an expert panel must be established to be consulted for each review.

Outcome of 2024 Review

Following the 2024 PIDR review, the Lord Chancellor determined the rate to be 0.5%, effective from 11 January 2025.

A full statement of reasons, explaining how the Lord Chancellor decided upon this rate, is available below. The impact assessment, equalities statement, and the advice of the independent expert panel are also available.

  • (PDF, 141 KB, 4 pages)
  • (PDF, 315 KB, 14 pages)
  • (PDF, 128 KB, 5 pages)
  • (PDF, 1.92 MB, 167 pages)
  • (PDF, 312 KB, 5 pages)

Personal Injury Discount Rate: Expert Panel

Following the completion of a rigorous appointment exercise the Lord Chancellor has now appointed the following members to the PIDR Expert Panel:

  • Charl Cronje as the member with experience as an actuary
  • Donald Taylor as the member with experience of managing investments
  • Dr Rebecca Driver as the member with experience as an economist
  • Edward Tomlinson as the member with experience in consumer matters as relating to investments

In line with the provisions in the CLA the panel is chaired by Fiona Dunsire, the Government Actuary. Minutes of the Expert Panel meetings will be published on this page.

Meeting minutes

(PDF, 124 KB, 2 pages)

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(PDF, 92.4 KB, 4 pages)

(PDF, 76.2 KB, 3 pages)

(PDF, 103 KB, 3 pages)

Terms of reference

(PDF, 138 KB, 3 pages)

(PDF, 121 KB, 5 pages)

Personal Injury Discount Rate: Exploring the option of a dual/multiple rate

Lord Chancellor announces new discount rate for personal injury claims

Updates to this page

Published 22 June 2023
Last updated 2 December 2024 show all updates

  1. Added outcome of 2024 review along with statement of reasons, impact assessment, equality statement, expert panel report, expert panel post-budget letter.

  2. 22 August, 11 September, 18 September, 25 September minutes published.

  3. 11 June, 8 July and 15 July 2024 minutes published.

  4. Added expert panel meeting minute for 25 April 2024.

  5. Expert panel meeting minutes for 1 March and 25 March 2024.

  6. PIDR expert panel meeting minutes for 19 January 2024 published.

  7. Expert panels minutes for November and December 2023 published.

  8. Expert panel meeting minutes: 21 September 2023 added and update to Chair.

  9. Expert panel meeting minutes: 21 July 2023, HM Treasury: Terms of Reference and Expert Panel: Terms of Reference published.

  10. Expert panel information added.

  11. First published.

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