The ever-evolving economic landscape continues to impact considerably the world of personal injury claims. In 2024 the 17th edition of the Judicial College Guidelines, saw a 22% uplift in recommended settlement guidelines for most injuries. This year, for injuries that occur on or after 31st May there will be a 15% inflationary increase to the whiplash tariff, and for claims submitted on or after 6 April, a 25% increase to the cost of MedCo Fixed Cost Medical Reports for claims involving injuries suffered in a Road Traffic Collision.
The Whiplash Reforms and Tariff Increase
The whiplash reforms were introduced in May 2021 to reduce the high number and cost of whiplash claims, aiming to lower insurance premiums for motorists by tackling fraudulent and exaggerated claims. With the reforms, a fixed tariff of compensation was introduced for a whiplash injury that that lasts up to 2 years and looked to reduce the level of awards seen for the same injuries prior to the reforms being implemented.
In November 2024, the Lord Chancellor, Shabana Mahmood, confirmed that the tariff will increase by 15% across the board and in March 2025 the increase was laid before parliament in the Whiplash Injury (Amendment) Regulations by way of affirmative procedure.
The increase will come in to force for injuries which occur on or after 31st May 2025.
The 15% increase is to account for the effects of inflation since 2021 (by measure of the Consumer Prices Index) and to include a buffer for expected inflation until 2027. The Ministry of Justice has said that the uplift will ensure that claimants can continue to receive appropriate compensation for whiplash injuries that occur before the next statutory review of the tariff. The original whiplash tariff from 2021 will continue to apply to relevant whiplash injuries from road traffic accidents that occur before 31st May 2025.
The new tariff levels can be seen below:
MedCo Fixed Cost Medical Reports
MedCo is a system used to source medical report providers for low-value personal injury claims, and the 25% increase to the cost of fixed cost medical reports comes following the publication of the Government response to the ‘Revisions to the Medical Reporting Process for Road Traffic Accident Claims’ consultation on 16 December 2024.
This increase came into effect on 6 April 2025, but only applies to claims where the CNF (Claim Notification Form), SCNF (Small Claim Notification Form) or Letter of Claim is issued on or after the effective date. The figures are exclusive of VAT and when updated will be found in Part 45.62 of the CPR (Civil Procedure Rules).
The increased fees are illustrated in the table below:
The whiplash tariff now sees the awards for injuries lasting between 18 and 24 months at the top end of the £5,000 SCT (Small Claims Track) limit for injury claims. If we add to this the Supreme Court decision on how to value ‘mixed injury claims’ (additional injuries not valued using the tariff), it’s likely that we see more claims now be valued or at least presented as being valued in excess of the SCT limit and therefore allowing legal costs to be recoverable against the paying party.
The increase to the fixed cost medical reports, it’s expected to also add further claims inflationary pressures to defendant compensators.
These changes mean that the assessment of causation and the plausibility of injuries presented will need to be scrutinised by defendant claims handlers. In addition, validating the need for obtaining additional medical reports will become increasingly important in controlling the cost of claims inflation.
To find out how our team can support you to successfully navigate the changing landscape of personal injury claims contact us today.
