Just one in ten personal injury lawyers expects the ‘discount rate’ applied to compensation awards to remain at the current level, a survey has found.
Research commissioned by barrister Bill Braithwaite QC found 10% of lawyers predict the government will ignore protestations from the insurance industry to leave the rate at 0.75%. The discount rate, also known as the Ogden rate, calculates what - if anything - should be taken from personal injury settlements to take account of the prospects of making more through investing the money. Former lord chancellor Liz Truss set the current rate in February but faced a barrage of criticism before leaving her position last weekend. Now PI lawyers are seemingly resigned to her replacement resetting the rate. Two-thirds of the 131 partners at PI firms surveyed expect the rate to be adjusted to between 1% and 1.5%. Almost one-fifth of respondents predict it will change to 0%. Braithwaite said solicitors are ‘pragmatic’ about the c