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Personal Injury: Compensation

HM Treasury written question – answered on 7th June 2016.

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Photo of Chris Philp Chris Philp Conservative, Croydon South

To ask Mr Chancellor of the Exchequer, what steps the Government is taking to reduce the number of personal injury whiplash claims.

Photo of Harriett Baldwin Harriett Baldwin The Economic Secretary to the Treasury

Between 1 April 2013 and 6 April 2015 the coalition government implemented a substantial programme of reform to reduce and control costs, strengthen the medical evidence process and reduce incentives to pursue fraudulent and unnecessary whiplash claims.

Despite that progress, the present government remains concerned about the number and cost of whiplash claims, which is why further reforms were announced in the Chancellor’s Autumn Statement in November 2015. These new reforms will remove the right to compensation for pain, suffering and loss of amenity from minor whiplash injuries, and reduce legal costs by raising the small claims limit for personal injury claims to £5,000. The government will consult on the detail of these reforms in due course, with a view to implementing them as soon as the necessary legislation is in place.

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