Personal injury claims

Very significant changes were made to the funding of personal injury claims (including workplace personal injury) by the Legal Aid, Sentencing and Punishment of Offenders Act 2012. These changes became law on 1 April 2013.

The combined effect of the changes is to make it much harder for employees to fund a personal injury claim against their employer for injury or illness suffered as a result of work. 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 were paid by the losing employer and used to fund no-win, no-fee litigation. These changes are likely to make it difficult for many vulnerable claimants to find legal representation. Particular problems are likely to be faced by those with low value or complex claims.