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Personal Injury: Compensation

Question for Ministry of Justice

UIN HL7582, tabled on 8 May 2018

To ask Her Majesty's Government on what basis an increase to the small claims limit to £5,000 associated with the Civil Liability Bill has been calculated.

Answered on

22 May 2018

It is the Government’s opinion that minor low value Road Traffic Accident (RTA) related personal injury claims are suitable to be heard in the small claims track. Claims under £5,000 are relatively minor and straightforward and are not so complex as to routinely require a lawyer. Handling these claims in the small claims track will reduce the cost of these claims for all motorists. In addition, in 2013, the then Government consulted on increasing the limit for RTA related claims to £5,000 and committed to keeping the issue under consideration for implementation when appropriate. The Government believes that it is right to return to this proportionate and appropriate measure now and that £5,000 is the right level to set for RTA related claims.

The limit for all other types of claims will though be increased in line with inflation to £2,000, allowing the more complex employers/public liability cases to remain in the fast track. The Retail Price Index is the appropriate measure to increase the small claims track limit because it is the index used to update damage awards in the Judicial College Guidelines.