Future loss of earnings—personal injury claims

The following PI & Clinical Negligence practice note provides comprehensive and up to date legal information covering:

  • Future loss of earnings—personal injury claims
  • The impact of Ogden 8
  • Use of 2018-based projections
  • Contingencies other than mortality
  • Addition of further tables
  • The simple loss of earnings calculation
  • Example 1—simple loss of earnings calculation
  • Loss of earnings calculation with residual earning capacity
  • Example 2—residual earning capacity
  • Interpolation
  • More...

Future loss of earnings—personal injury claims

NOTE: On 15 July 2019, at the conclusion of the first review of the discount rate, the Lord Chancellor announced that the discount rate would change to minus 0.25%. The minus 0.25% discount rate came into effect on 5 August 2019. Schedule A1 to the Damages Act 1996 provides that subsequent reviews are to take place within five years of the conclusion of the previous review which means that the next review must commence on or before 15 July 2024.

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:

  1. there is a residual earning capacity

  2. the claimant stood a chance of promotion

  3. the claimant was injured before they established a career

The impact of Ogden 8

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:

  1. whereas Ogden 7 multipliers (including the multipliers for loss

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