Important Change to the Personal Injury Discount Rate (PIDR)
The Personal Injury Discount Rate (PIDR) in England and Wales has changed, moving from -0.25% to +0.5%, effective 11 January 2025. This adjustment impacts how lump sum damages are calculated for those who have suffered serious and long-term personal injuries due to negligence.
What is the PIDR?
The PIDR is used to determine the lump sum compensation awarded to claimants, accounting for the period over which future losses will occur and the expected return on the lump sum investment. A higher PIDR reduces the lump sum needed, while a lower rate increases it, as it assumes less return on the settlement.
What Does This Change Mean & How We can Support?
The shift from a negative to a positive rate indicates an assumption of higher investment returns, meaning claimants may receive slightly lower lump sum awards compared to previous calculations. This change follows a review by an independent expert panel, led by the Government Actuary, and is supported by analysis from the Government Actuary’s Department (GAD).
At UKExpertMedical, we understand the significant impact that serious injuries have on individuals and their families. We’re committed to helping our clients navigate the complexities of personal injury claims with empathy and respect. Whether dealing with the effects of negligence or seeking fair compensation, our expert team provides the support and guidance needed to secure the best outcomes.
