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.
This statement has also been made in the House of Lords