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 terms. It is increasingly common for the Financial Advice Report to be recommending lump sum settlements as opposed to PPOs. A high quality Financial Advice Report is essential in all large claims in which there is a PPO/lump sum debate

2. •

   there is an increasing problem with the levels of indem