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Government slashes lump sum discount rate


The government has changed the discount rate applicable to personal injury lump sum compensation payments, to minus 0.75 per cent from 2.5 per cent. The move has, not surprisingly, angered insurers and delighted plaintiff lawyers. From insurers’ point of view, the government appears to have given with one hand and taken away with the other. Any benefits from promised reforms to employment tribunals, whiplash and small claims limits have now been removed through the changes to the discount rate.