Personal injury claims

Very significant changes have been made to the funding of personal injury claims (including workplace personal injury) by a new piece of legislation, the Legal Aid, Sentencing and Punishment of Offenders Act 2012, which received Royal Assent on 1 May 2012, against a backdrop of protest from unions and other campaigners. The combined effect of the changes is to make it far harder for employees to fund a personal injury claim against their employer.

In particular, the Act caps the amount of costs that can be taken from an individual’s compensation to fund legal fees at a maximum of 25%. It also abolishes the “success fees” that could be recovered from the losing employer and used to fund no-win-no-fee litigation. These changes are expected to make it very difficult for many vulnerable claimants to find legal representation.

For further information see the blog produced by Hugh Robertson, TUC head of health and safety, on the TUC Touchstone website: http://touchstoneblog.org.uk/2011/07/bill-to-damage-access-to-justice/