Consultation on the inflation index for the calculation of the personal injury discount rate and the methodology for calculating the judicial rate of interest

Footnotes

1 As enacted, the 2019 Act provided for a hypothetical investment period of 30 years, but this was changed to 43 years by the Damages (Review of Rate of Return) (Scotland) Regulations 2024 (SSI 2024/163).

2 The Average Weekly Earnings measure published by the Office of National Statistics was prescribed as the appropriate inflation measure in SSI 2024/163.

3 The UK Government had announced in 2018 that it would not introduce new uses of RPI.

4 The Damages (Personal Injury) (Scotland) Order 2017 (SSI 2017/96) provided for a PIDR of minus 0.75% with effect from 28 March 2017.

5 The Government Actuary made his rate determination on 27 September 2019. It was laid before the Scottish Parliament, and came into effect, on 30 September and 1 October 2024 respectively.

6 Scottish Ministers may cause an additional review to happen ahead of the new one due under the 5 year cycle, but that does not disturb the normal 5 year cycle. This power has not been exercised to date.

7 The Government Actuary made her rate determination on 24 September 2024. It was laid before the Scottish Parliament, and came into effect, on 26 and 27 September 2024 respectively.

8 The gross return from the notional portfolio of CPI + 3.50% p.a. represents the Government Actuary’s assessment of the median expected return on the notional portfolio over 43 years in accordance with the requirements of paragraphs 7, 9 and 12 of Schedule B1 of the Act, as modified by Regulations 2 and 3.

9 The Government Actuary assumed that AWE will increase in line with CPI + 1.25% per annum.

10 Setting the Personal Injury Discount Rate: A call for evidence - GOV.UK

11 See para. 5.18 of the Expert Panel’s Report.

12 See the Accountant in Bankruptcy’s consultation on bankruptcy debt and advice.