Q&As

Recent developments in periodical payments and indexation.

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Produced in partnership with Peter Edwards of Devereux Chambers
Published on: 24 April 2018

Have there been any recent developments in the assessment of periodical payments and specifically what has been the approach to indexation of these types of award?

This is an area in which developments tend to be by way of trends rather than progressive court authorities since Periodical Payment Order (PPO) cases rarely proceed to a contested trial.

The current trend is distinctly away from the use of PPOs, the numbers falling dramatically since a peak in 2012. The main reasons for this are as follows:

  1. •

    the reduction in the discount rate from 2.5% to -0.75%. This has made lump sum settlements far more favourable for claimants. For example, for a 20-year old catastrophically injured claimant requiring a care regime costing £100,000 a year, the lump sum award would be around £3.2 million at a 2.5% discount rate. The award rises to almost £9 million at a -0.75% discount rate. The increase in lump sum awards clearly makes that option far more attractive and provides ample funds for investment, securing a rate that is better than -0.75% in real

Peter Edwards
Peter Edwards chambers

Devereux Chambers

Peter Edwards is one of the few senior practitioners with a specialism and a thriving practice in both of the complimentary fields of employment law and personal injury. "Noted for cases at the intersection of personal injury and employment law" by Legal 500 2017, he has extensive experience of dealing with ' and cross-examining ' medical experts and is at a particular advantage when dealing with cases involving both areas of law (for example, stress-at-work/workplace injury cases in the High Court and Disability Discrimination claims in the ET and at Appellate-level). He is ranked in both major Directories in personal injury and employment: "He's excellent. If it's a difficult case he'll handle it with absolute aplomb." ' Chambers UK 2017. "He is able to give to provide accurate, focused and succinct advice." ' Legal 500. 'His attention to detail and ability to get to the crux of a case are second to none.' 'Decisive, down-to-earth and robust.' -Chambers UK 2018.

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Jurisdiction(s):
United Kingdom
Key definition:
Periodical payments definition
What does Periodical payments mean?

Payments made to a spouse or civil partner or a former spouse or civil partner for themselves or for a child of the family.

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