Justice Select Committee Publishes Discount Rate Report

The Justice Select Committee has published their pre-legislative scrutiny report of the discount rate legislation following their recent consultation.

The Committee accepts changing the assumptions made when setting the discount rate to more accurately reflect "real world" claimant investment behaviour is needed. However the report questions whether the Government has presented sufficient evidence concerning claimant investment behaviour and calls for further evidence in relation to this issue before the draft legislation is progressed.

The Justice Select Committee noted "The Government must clarify its aims, gather proper evidence about how claimants invest lump-sum damages and whether investment covers their future losses, and ensure adequate safeguards to prevent under-compensation of the most vulnerable claimants".