Damages Act discount rate

Love v Dewsbury QBD (Judge O’Brien) 19 November; SJ 30 November p5

The Lord Chancellor has indicated that he might reconsider whether it was appropriate to change the discount rate of 2.5% applicable to lump sum payments of damages under the Damages Act 1996 which has not been changed since 2001 even though the average yield from gilts for the past three years has been just over 1%. In the present case a drop of only 1% would increase the award of some £2.2m by 50%.