Inflation, price indices, and 100% compensation claims

As personal carer salaries have been rising faster than general retail prices, a successful 100% compensation claim before 2008 could result in yearly payments that decrease in value, in real terms. An appeal court decision in early 2008, however, changed this, and set the precedent that periodic payments in personal injury cases should be linked to UK workers' earnings.

This was achieved by linking the estimated future payments that the losing side would pay in personal injury compensation to the Annual Survey of Hours and Earnings (ASHE) rather than the Retail Price Index (RPI). A senior judge was cited in the 2008 case as saying "The calculation [of future payments] should make the best use of such tools to assist that process as are available."

Best use, in this case, has been taken to mean that attention should be paid to what the personal injury victim is using those payments for; in a compensation claim, the damages that are paid are expected to be used for ongoing care. Therefore it is most likely that the best use of predictive tools should use the price index that relates specifically to those care costs, rather than to a shopping basket' of various goods and services.

It is essential, then, in making a personal injury claim, to ensure that any no win, no fee solicitor you may engage is aware of the developments in cases such as this.

Making a 100% compensation claim for personal injury with YouClaim
YouClaim's panel of personal injury solicitors are well versed in the latest precedents in the law as it applies to their specialisms. Whatever your personal injury work accident, asbestos-related disease, or motorbike crash, for example you will be able to find the best representation for your suit with us.

Our entire team is drawn from firms governed by the Solicitors Regulation Authority, which guarantees their professional service, and all will operate under a no win, no fee agreement and 100% compensation promise in almost every case they take on.

Our claim form will put you in touch with our advisors, and you can tell us a good time for us to call you to discuss the details of your personal injury claim. Or, if you want immediate contact, you can use our e-chat window or simply call our free UK hotline today: 0800 10 757 95. We look forward to helping with your 100% compensation claim.