The Medical Defence Union (MDU) welcomed news that the personal injury discount rate (PIDR) in Scotland and Northern Ireland has been increased, potentially saving millions of pounds in the costs of compensation payments.

Following a review, the government actuary has determined that, with effect from today, the PIDR in Northern Ireland and Scotland should be increased to +0.5% from the previous rates of -1.5% and -0.75%, respectively.

The PIDR is used to calculate personal injury awards for future losses such as care and loss of earnings: the lower the rate set, the higher the cost of compensation.

Responding to that announcement, David Pranklin, MDU head of claims, said:

"In recent years, reductions in the PIDR have led to a huge increase in the cost of clinical negligence claims. This has had serious implications for the NHS and for MDU members who have been shouldered with the increased costs, so the determination by the government actuary to increase the rate in Scotland and Northern Ireland to +0.5% is welcome news. This will mean that more money can be retained in the NHS to be spent on patient care.

"The process of reviewing the PIDR in England and Wales is underway and is due to be completed by January 2025. We hope the England and Wales PIDR will be increased from the current rate of -0.25%.

"Despite today's good news, claims costs continue to rise. The MDU is calling for a package of reforms to tackle these rising costs including the introduction of fixed costs in lower value cases and a change in the law that currently allows claims to be made for the cost of private care."

MDU hopes for positive impact on claims costs after change to PI discount rate

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