The lord chancellor has set out long-awaited proposals for calculating the ‘discount rate’ applied to personal injury settlements. Under proposed legislation, the rate will be set by reference to rates of return on ‘low risk’ rather than ’very low risk’ investments as at present. The rate will also be reviewed at least every three years.
A statement today said that ministers are keen to engage on the issue ahead of a bill being introduced into parliament. A consultation on the issue closed in May and draft legislation will be published today to change the law.