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MoJ consultation to review whiplash tariff

The UK government has launched a crucial evaluation process for the whiplash tariff system.  

 The Civil Liability Act 2018 ushered in significant reforms aimed at recalibrating the compensation landscape for personal injury claims, particularly those related to whiplash injuries. As part of this legislative overhaul, the whiplash tariff system was introduced on May 31, 2021. Now, the government is conducting a statutory review to assess the effectiveness of these reforms. 

Call for evidence: what you need to know 

The government has issued an open call for evidence, inviting stakeholders from various industries to contribute their insights and expertise. This call seeks to gather up-to-date information to inform the statutory review of the whiplash tariff. Interested parties are encouraged to submit their evidence before the deadline of 11.59 pm on 2 April 2024. 

Key focus areas of the review 

The review will delve into several key areas, including the performance of the whiplash tariff system since its inception, changes in economic factors such as inflation rates, and broader shifts within the personal injury claims sector. By examining these facets, the government aims to gain a comprehensive understanding of the impact of the reforms on stakeholders and the wider economy. 

Matthew Maxwell Scott, executive director of the Association of Consumer Support Organisations (ACSO), commented, “The statutory review comes after a long period of high inflation, and given that the tariff was set at a very low level to begin with, we would expect to see a substantial uplift.” 

“With claims numbers well down on pre-reform levels but average insurance premiums going through the roof, there are many serious questions which need to be asked about the motivation of the original reforms and whether they were ever in the consumer interest.” 

Implications for the future 

As regulatory bodies like the Financial Conduct Authority and the Justice Select Committee conduct their own inquiries, the whiplash reforms remain under intense scrutiny. The outcome of the statutory review will undoubtedly shape the future landscape of personal injury claims in England and Wales. By addressing concerns about the tariff’s adequacy and its impact on insurance premiums, policymakers aim to achieve a fair and balanced system for all stakeholders involved. 

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