The government has launched a call for evidence ahead of a review of the current discount rate.
David Gauke, Lord Chancellor and Secretary of State for Justice launched the call for evidence to review the personal injury discount rate, following the successful passage of the Civil Liability Bill.
The call for evidence begins on 6 December and ends on 30 January.
A statement said: “It is the duty of the Lord Chancellor to set the rate and, to do this, I need to have up to date evidence of the investments available to victims, the investments that they make and the other matters that I have to take into account in setting the rate.”
The move comes following the recent update on the Civil Liability Bill that was sent for Royal Assent after final amendments were approved by the House of Lords last month which proposes a new system for raising the discount rate.
James Dalton, director of general insurance policy, ABI said: “We’re pleased to see the Lord Chancellor progressing quickly to gather the evidence needed to inform a review of the discount rate.
“We currently have one of the most costly discount rates of any major economy and this drives up the cost of insurance and puts a big financial burden on the NHS. We look forward to continuing to engage constructively with the Ministry of Justice to ensure the right outcome for claimants, insurance customers and the taxpayer.”
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