Question to the Ministry of Justice:

To ask the Secretary of State for Justice, when his Department plans to review the personal injury discount rate.

The personal injury discount rate set by the Lord Chancellor for England and Wales under section 1 of the Damages Act 1996 was reduced from 2.5% to minus 0.75% on 20 March following a review. The Lord Chancellor is required by law to make sure the rate is not inappropriate.

On 7 September, the Ministry of Justice published and invited comments on draft legislation that would, if enacted, change the way in which the discount rate is set and require a review of the rate to be started within 90 days of the legislation coming into force and completed within 180 days of the start of the review. The Justice Select Committee is conducting a pre-legislative scrutiny inquiry into the draft legislation.

Subject to the response to the draft legislation, the Government intends to legislate promptly to make sure that the way the rate is set is put on the best possible footing at the earliest practicable date. The first review of the rate will then be carried out in accordance with the terms of the legislation.