Change to personal injury discount welcomed

30 September 2024

The Dental Defence Union (DDU) welcomed news that the personal injury discount rate (PIDR) in Scotland and Northern Ireland is to be increased, potentially saving millions of pounds in the costs of compensation payments.

Following a review, the government actuary has determined that from September 27, 2024, the PIDR in Northern Ireland and Scotland should be increased to +0.5 per cent from the previous rates of -1.5 per cent and -0.75 per cent respectively.  

The PIDR is used to calculate personal injury awards for future losses such as care and loss of earnings - the lower the rate set, the higher the cost of compensation.

David Pranklin, head of claims for the DDU, said, “In recent years, reductions in the PIDR have led to a huge increase in the cost of clinical negligence claims. This has had serious implications for the NHS and for DDU members who have been shouldered with the increased costs. So, the determination by the government actuary to increase the rate in Scotland and Northern Ireland to +0.5 per cent is welcome news. This will mean that more money can be retained in the NHS to be spent on patient care. 

“The process of reviewing the PIDR in England and Wales is underway and is due to be completed by January 2025. We hope the England and Wales PIDR will be increased from the current rate of -0.25 per cent.”

He added, “Despite the good news, claims costs continue to rise. The DDU is calling for a package of reforms to tackle these rising costs including the introduction of fixed costs in lower value cases and change in the law that currently allows claims to be made for the cost of private care.”