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Detail of outcome
The consultation was published in February 2013. 66 responses were received. The consultation asked whether the legal parameters governing the way in which the discount rate is currently calculated are appropriate and whether there is a case for encouraging the use of periodical payments.
On the first issue widely diverging views were expressed and overall the responses demonstrated very little consensus on whether the current legal parameters were appropriate.
On the second issue, there was only limited support for the greater encouragement of periodical payments in England and Wales for a variety of reasons.
This consultation paper seeks views on 2 subjects relating to the setting of the discount rate under section 1 of the Damages Act 1996:
- Whether the legal parameters defining how the rate is set should be changed
- Whether there is a case for encouraging the use of periodical payment orders instead of lump sum payments
Please note: the consultation paper was revised on 5 March 2013 to correct an error in paragraph 79. This paragraph stated that there could be around 1800 periodical payment orders being made annually. It now states that there could be about 200 to 250 periodical payment orders being made annually.
This consultation is aimed at:
- legal professionals
This is a joint consultation produced by the Ministry of Justice, the Scottish Government and the Department of Justice, Northern Ireland.