Last updated on October 26th, 2016 at 02:53 pm

In his autumn review last year, the then chancellor, George Orsborne, announced that the government would implement changes to the legal system that would:

• Raise the small claims limit for personal injury claims from £1,000 to £5,000, which means that claims of less than £5,000 will be transferred to the small claims court and solicitor fees will not be recoverable – leaving some injured people with no legal help or support, and
• Remove the right to compensation for ‘minor’ soft tissue injuries (includes whiplash).

You can read more details about these proposals in our previous news item.

MOJ “unenthusiastic” about reforms

The Times reported that the Ministry of Justice (MOJ) has told the insurance industry that it is “unenthusiastic about the proposals” and that the changes are not its priority.  It appears that the prisons white paper is now top of the agenda for the justice secretary, Liz Truss.  Whilst she has said that the previously proposed PI changes are “not off the table”, she has not given any indication that a future date has been set.  However, the Law Gazette reports that the MOJ will publish proposals for reform by Christmas, but it is not certain that they will include increasing the small claims limit to £5,000 or getting rid of damages for soft tissue injuries.

Insurance industry bemoan shelved personal injury reforms

The insurance industry has been scathing in its response, with James Dalton, director general of the Association of British Insurers (ABI) saying

“The MOJ seems to be rowing back from much needed reform to the civil justice system that will save motorists up to £50 a year on average”. 

However, it is widely reported that savings already made within the industry in the last year have simply not been passed on, with the Independent reporting that the insurance industry wants to “have its cake and eat it”.  The ‘£50 saving’ claim has come under much scrutiny, with the Law Gazette saying that there is no ‘audit trail’ to show that the savings made by insurers would not simply go back into its own coffers, nor evidence to justify the increase in the small claims limit.  A further report in the Times in August this year says that the industry is cheating its customers and that, despite a drop in whiplash claims and £500 million savings, premiums have raised by around a fifth in the last year.

Shelved personal injury reforms good news for access to justice

Chief executive of the Law Society, Catherine Dixon, said that the society is “delighted the government has recognised that its proposed changes to personal injury claims would hamper access to justice”, and that the “decision is great news for ordinary citizens and for access to justice”.

Saying that we must not become complacent following the government’s backtrack, president of the Association of Personal Injury Lawyers (APIL), Neil Sugarman, said

“We will continue to argue that any reforms to the personal injury claims process must be based on independent evidence, rather than insurance industry rhetoric.”

Graysons continues to help accident victims

Graysons’ personal injury experts have helped thousands of clients to gain access to justice following accidents that were not their fault and which have resulted in injury.  Had the proposed changes been in place, many of these cases would have been deemed ‘small claims’ and these clients would have had to find their way through the system themselves, with no legal help, or would simply have had to suffer in silence.

We will continue help victims of accidents wherever possible and so we are delighted that the government is rethinking its plans.  Hopefully if it is to go ahead with new reforms it will consider the fact that those who are injured through no fault of their own should have a right to obtain legal representation and help to enable them to gain proper redress.

You can find out more about our personal injury services on our web pages.