Image by: Gareth Milner, Flickr
Chancellor and finance minister Philip Hammond has expressed his personal commitment to fix the personal injury discount rate following industry outrage over the recently announced government reform on compensation payouts, the Association of British Insurers (ABI) claims.
“The chancellor is personally committed to trying to find a way forward. That came across very clearly,” Evans told City AM.
“He demonstrated a degree of personal commitment to try and fix this problem. That’s to be welcomed.”
According to Evans, the government needs to introduce a new law to allow a new discount rate to be set this year. He said this will mitigate some of the discount rate cut’s impact on consumers.
“It is not too late to get the law changed and get a proper rate in place that takes into account a wider range of factors and that would allow adjustments to take place going forward,” Evans was quoted as saying by City AM.
“There is every opportunity to do that this year. Most obviously through the Prisons and Courts Bill, which was just published last week,” Evans added.
In a joint statement with the insurance bosses following their meeting, Hammond said that the discount rate should be set at a level that is “fair to both claimants and consumers.”
Hammond vowed that the government will urgently consult the industry on future rates and will present any necessary legislation at an early stage.
According to the statement, the industry will “contribute fully” to the upcoming consultation, while the government will “carefully consider all evidence and arguments submitted.”
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