Damages Act 1996: the discount rate - review of the legal framework

Closed 7 May 2013

Opened 12 Feb 2013

Results updated 30 Mar 2017

The consultation was published in February 2013. 66 responses were received. The consultation asked whether the legal parameters governing the way in which the discount rate is currently calculated are appropriate and whether there is a case for encouraging the use of periodical payments.

On the first issue widely diverging views were expressed and overall the responses demonstrated very little consensus on whether the current legal parameters were appropriate.

On the second issue, there was only limited support for the greater encouragement of periodical payments in England and Wales for a variety of reasons.





This consultation paper seeks views on two subjects relating to the setting of the discount rate under section 1 of the Damages Act 1996:

  • Whether the legal parameters defining how the rate is set should be changed.
  • Whether there is a case for encouraging the use of periodical payment orders instead of lump sum payments.

Please note: the consultation paper was revised on 5 March 2013 to correct an error in paragraph 79. This paragraph stated that there could be around 1800 periodical payment orders being made annually. It now states that there could be about 200 to 250 periodical payment orders being made annually.


  • Citizens
  • Litigants
  • Legal professionals


  • Compensation
  • Damages
  • Courts