Mr (The Lord Chancellor and
Secretary of State for Justice): The Damages Act 1996
(“the Act”) requires the Lord Chancellor to start a review of the
personal injury discount rate within 90 days of and including the
date on which the amendments made to the Act by the Civil
Liability Act 2018 came into force, which occurred on 20 December
2018.
The Act requires that the Lord Chancellor conducts the review and
determines whether the rate should be changed or kept unchanged
within 140 days of and including the day on which the review
starts. It also requires the Lord Chancellor, in conducting the
review, must consult (a) the Government Actuary and that this
consultation must start within 20 days of and including the start
of the review; and (b) the Treasury.
In accordance with these statutory requirements, I have decided
to start the review today (19 March 2019) with the consequence
that I must conduct the review and make the determination about
the rate on or before 5 August 2019.
I will start my consultation with the Government Actuary no later
than 7 April 2019 and will start my consultation with the
Treasury at the same time.
I have placed copies of the Terms of Reference that I propose to
issue to the Government Actuary and the Treasury for their
respective consultations in the libraries of both Houses of
Parliament.
I will make a further announcement on the completion of the
review.
