Thank you for contacting me about the proposed changes to the small claims court. Whiplash claims are 50 per cent higher than a decade ago, despite the UK having some of the safest roads in Europe and a fall in the number of accidents. As you are aware, the Government has announced plans to introduce measures to end the right to cash compensation for minor whiplash injuries, removing over £1 billion from the cost of providing motor insurance.
These changes are intended to end the cycle in which responsible motorists pay higher premiums to cover false claims by others, and the Government expects the insurance industry to pass on to consumers an average saving of £40 per policy.
The Government is also proposing to increase the upper limit for small claims from £1,000 to £5,000. This will allow more people with injuries to access the court. Plans also include the introduction of a transparent tariff system of compensation payments for claims with more significant injuries.
The Government held a public consultation on the details of these proposals, which closed on 6th January and the responses are currently being considered. More information can be found on the following webpage:
https://consult.justice.gov.uk/digital-communications/reforming-soft-tissue-injury-claims/
