EWJ 60 April 2025 web - Journal - Page 37
a) the volume of whiplash settlements;
2021 and March 2024 at the time. The Government
acknowledge that these figures do not account for the
unexpected inflationary pressures since the initial tariff was set, and that the real value of the figures has
fallen.
b) the composition of the claims market;
c) caseloads; and
d) any other relevant factors related to whiplash
claims.
36/. A different approach to structuring the tariff was
of course then taken in the Whiplash Injury Regulations 2021, whereby the tariff was split into whiplash
and whiplash + minor psychological injury (see paragraph 23).
Answer this question online at
https://consult.justice.gov.uk/digital-communications/statutory-review-of-the-whiplash-tariff-cfe/
Mixed injuries
30/. Under the CLA, courts can continue to award
damages which reflect the combined effect of injuries
where there is a mix of whiplash (tariff) and nonwhiplash injuries sustained at the same time. We are
interested in understanding how the whiplash tariff
has impacted claims for mixed injuries.
37/. The following questions seek to understand the
real impact of inflation since the introduction of the
tariff on 31 May 2021.
38/. We are also interested in receiving evidence on
any other economic factors which stakeholders feel are
relevant to the review, such as unemployment and interest and exchange rates.
31/. We are aware of the factors influencing the valuation of mixed claims, including the ongoing case regarding mixed injuries, due to be heard in the
Supreme Court in February 2024, and the upcoming
update to the Judicial College guidelines. However,
the Government cannot comment on ongoing legal
proceedings or prejudge what will be included in the
revised guidelines.
Question 10: What has been the impact of inflation on
claimants’ damages since 31 May 2021?
Question 11: Does CPI remain an appropriate inflationary measure?
If not, why not?
Question 12: Is the three-year inflationary buffer built
into the whiplash tariff effective?
Question 7: How has the introduction of the whiplash
tariff changed the process of valuing injuries for the
purpose of making offers/counter offers?
If not, what alternative would you propose and why?
Question 13: Are there any other economic factors
which should inform the review?
Question 8: How has the introduction of the whiplash
tariff changed the process of agreeing settlements for
mixed injury claims?
Answer these questions online
https://consult.justice.gov.uk/digital-communications/statutory-review-of-the-whiplash-tariff-cfe/
Question 9: What do you think should be taken into
account in the review regarding mixed injuries?
Additional factors
39/. In looking at what has changed since 2021, we are
interested in gathering evidence on any other additional factors that are relevant in the context of the
review.
Answer these questions online at
https://consult.justice.gov.uk/digital-communications/statutory-review-of-the-whiplash-tariff-cfe/
Broader factors
32/. This section seeks to gather evidence on the influence of broader factors since the introduction of the
tariff. This is to understand their impact and consider
how these may be taken into account in the context of
reviewing the tariff.
40/. Respondents are asked to consider political,
social, technological, legal, environmental or other developments since the introduction of the tariff rates
that are relevant to the review.
Question 14: What other factors are relevant in the
context of a tariff review?
Inflation
33/. The Government committed to review the tariff
every three years and created a three-year “buffer” in
the figures to ensure that the rates took account of
projected future inflationary pressures.
Please provide reasons supported by data where
possible.
Question 15: Are there any other considerations not
already discussed that should be taken into account as
part of the review?
34/. The whiplash tariff amounts were set using Consumer Price Index (CPI) as a general inflationary
measure, in line with advice from the Office of National Statistics for Government. This is consistent with
the approach taken elsewhere, for example, benefits,
state pensions and business rates which are all set by
reference to CPI.
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Equality considerations
41/. Section 149 of the Equality Act 2010 (“the Act”)
requires Ministers and the Department, when exercising their functions, to have ‘due regard’ to the need
to:
35/. Table 2 below, illustrates how the tariff figures for
claims including whiplash and minor psychiatric injury, proposed in 2018, were uprated and futureproofed using forecast CPI inflation between March
EXPERT WITNESS JOURNAL
l eliminate unlawful discrimination, harassment,
victimisation and any other conduct prohibited by the
Act;
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APRIL 2025
