PI Brief Update

Upcoming Statutory Review of the Whiplash Tariff: but will reform follow? - Nancy Kelehar, Temple Garden Chambers

25/04/24. As readers will know, the whiplash tariff was introduced on 31 May 2021 under the Civil Liability Act 2018 (‘the Act’). Section 4(2) of the Act requires the Lord Chancellor to review the regulations within 3 years of their coming into force, i.e. by 31 May 2024. This upcoming review may result in increased figures under the tariff.

On 2 April 2024, the Ministry of Justice (MoJ) closed its Call for Evidence which it says forms a key part of the review of the whiplash tariff. The review is intended to assess the tariff and its component parts, and wider economic, sectorial and other factors since its introduction.

Of note to practitioners and claimants alike, the MoJ made reference in its Call for Evidence to “unexpected inflationary pressures” and noted that, despite the original figures being “uprated and future-proofed” using forecast CPI inflation between March 2021 and March 2024, the real value of the figures has fallen since their implementation (para 35).

On this basis, it seems likely that there will be at least some degree of uprating of the figures at some point in the near future, however it remains uncertain if and to what extent the figures will be uprated and when any new figures would come into effect. 

Additionally, CILEX (The Chartered Institute of Legal Executives) has responded to the Call for Evidence, stating that the compensation for PSLA in whiplash cases is “derisory and unfair” and fails to fully compensate claimants. CILEX argues that the current system which splits cases into ‘whiplash only’ and ‘whiplash plus minor psychological injuries’ is not a suitable approach, failing to reflect the complexity of psychological injury.

However, the extent to which reform will be forthcoming is uncertain, especially in light of the MoJ’s recent rejection for suggested changes to the Official Injury Claim (OIC) portal put forward by both claimant and defendant representatives.

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