CONSIDERING THE IMPACT OF INFLATION WHEN LOOKING AT THE JUDICIAL COLLEGE GUIDELINES: A CASE TO POINT
It has been established for some time that the figures in the Judicial College Guidelines for the Assessment of Personal Injury Damages are themselves subject to indexation for inflation. The most recent Guidelines (the 17th) are based on the RPI in August 2023. It was not expected to be be published until April 2024. The importance of taking into account inflation was recognised in the judgment of HHJ Melissa Clarke (sitting as a judge of the High Court) in Wilson v Ministry of Justice [2024] EWHC 2389 (KB)
THE CASE
The judge was assessing damages in a personal injury case. She used the 17th edition of the guidelines and observed that inflation then needed to be taken into account.
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- I agree with Mr Wilson that his level of pain, ongoing disability, bladder dysfunction requiring further surgical procedures and causing dermatological injury and pain, less severe bowel and sexual dysfunction, significant psychiatric symptoms and a diagnosis of PTSD puts this fairly squarely at the middle of the range. In my judgment, and using the 17th edition guidelines, an award of £153,000 is appropriate. This should be uplifted for RPI from August 2023 to the date of handing down of this judgment.
THE DIFFERENCE THIS WOULD MAKE
I have used a fairly rough and ready online calculator. This states that the costs of goods and services increased by 3.6% over this period. £153,000 in August 2023 amounts to some £158,436 today.
WHAT THE GUIDELINES SAY
There is a “Note in Inflation” in the Guidelines. These make matters clear “For the avoidance of doubt, an inflationary increase to the Guideline figures should be applied to ensure that figures remain up to date.”
THE GUIDANCE RECOMMENDED IN THE GUIDELINES
The RPI figure recommended is “the RPI All Items Index” of the Office for National Statistics website.
Recent cases on damages in personal injury and clinical negligence cases: Webinar 3rd December 2024
This webinar looks at recent cases relating to damages in and considers the practical consequences for the practitioner. Booking details are available here.
- Damages for pain and suffering, the impact of the latest Judicial College Guidelines
- The importance of “inflation proofing” the Guidelines.
- Claims for loss of earnings
- Awards for care
- Recent cases on accommodation
- Important developments.