Dakin: Post-implementation review later this year
The senior judiciary has warned the government not to extend the whiplash tariff to larger or different types of claims, it emerged yesterday.
The news came as the government’s 15% increase in the current tariff passed the first stage of its approval process in Parliament.
In November, Lord Chancellor Shabana Mahmood published the first statutory review of the Whiplash Injury Regulations 2021, which recommended the increase to reflect inflation since it was introduced in 2021 and include a ‘buffer’ to take account of predicted inflation until the next review in 2027.
This meant the current range of legal fees – from £240 for injuries of up to three months’ duration, to £4,215 for injuries lasting 18-24 months – would rise to £275 and £4,830.
As required by the Civil Liability Act 2018, Ms Mahmood then had to consult the Lady Chief Justice on her decisions.
In a House of Commons debate on the regulations implementing the change, justice minister Sir Nicholas Dakin told the House of Commons that the Master of the Rolls, Sir Geoffrey Vos, acting on behalf of the Lady Chief Justice, “expressed his endorsement of the proposal to uprate the whiplash tariff”.
However, Sir Nicholas continued: “He also noted that the judiciary would not welcome any further derogation from the principle that damages are assessed and awarded by the courts.”
The proposed increase was supported by both Conservative and Liberal Democrat spokespeople, neither of whom were aware that HM Treasury last week issued a report saying that the reforms saved policyholders £31 in premiums in the first three years of their operation.
However, in the run-up to the reforms, the Ministry of Justice said they would save £35 a year.
Sir Nicholas said this was just a factual report and “does not represent the government’s view” – presumably on the success of the reforms.
“So it is right and proper that… the Ministry of Justice will undertake a post-implementation review of the whiplash reforms later this year.”
In her comments, the Liberal Democrats’ Jess Brown-Fuller stressed the importance of a balanced approach to whiplash claims.
“We must remember that behind every claim is a person, often in pain, unable to work, potentially scared to go back out on the roads and navigating an unfamiliar legal system. For them, the process must be simple, fair and accessible.
“Victims should never be discouraged from seeking rightful compensation because of excessive bureaucracy or overly rigid procedures…
“It is critical that review mechanisms are in place not just to track inflation, but to assess whether the tariff system continues to serve justice. We believe that the government must do more to simplify the claims process, particularly for those who do not have or cannot access legal representation.”
The long-term success of the system depended on three things, Ms Brown-Fuller concluded: maintaining fairness for claimants, preserving judicial discretion where needed and ensuring that promised savings were felt by customers. “We must remain focused on people, not just on policy.”
The regulations now have to be approved by the House of Lords.
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