The following PI & Clinical Negligence practice note provides comprehensive and up to date legal information covering:
NOTE: On 15 July 2019 the Lord Chancellor announced that the discount rate would change to minus 0.25% from the previous level of minus 0.75%. The new discount rate came into effect on 5 August 2019. The calculations below have all been updated to reflect the new rate.
See also Practice Note: Past loss of earnings. Claims for future loss of earnings have a number of aspects that make them more complicated than other areas of future loss.
First, even in a simple loss of earnings claim, additional factors are applied to the multiplier to increase its accuracy. Secondly, there may be specific complications, eg where:
there is a residual earning capacity
the claimant stood a chance of promotion
the claimant was injured before they established a career
The publication of Ogden 8 has not brought about fundamental change to the way in which future loss of earnings is calculated. Nonetheless, there are important changes of which the practitioner must be aware. Broadly, the changes relevant to the calculation of future loss of earnings are as follows:
whereas Ogden 7 multipliers (including the multipliers for loss of earnings) used mortality rates from 2008 projections, Ogden 8 uses the 2018-based projections
there have been important changes (in the figures themselves and the methodology proposed in the guidance notes) to the application of contingencies other
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