Lawyers Outraged at Fixed Costs Announcement

Chris Grayling, the MP in charge of the consultation charged with consideration of the Personal Injury industry (amongst other things), has announced that legal costs for all cases will be slashed in line with proposals suggested last year.

At present, only Road Traffic Accidents worth less than £10,000 in damages are subjected to fixed costs.  From the end of April fixed costs will be extended vertically to all road accidents worth up to £25,000, and horizontally to include accidents at work and public liability (slips and trips) claims.  Lawyers are outraged that the existing road accident fees will be cut by almost 60%, despite the fact that the Government only implemented the current fixed costs regime two years ago.  Even worse, the Government expects cases involving very serious and debilitating injury to be dealt with for the equivalent of around two hours worth of work.

The major losers here will be injured victims.  Unable to find representation at all, experiencing poor service from firms who have had to trim the fat down to the bare bones of client service, and undersettling of claims; all will become commonplace.

These proposals have been put together ostensibly to cut the amount of fraud in the personal injury system and to reduce car insurance premiums; both headline-grabbing and virtuous aims.  There are just two simple flaws in that plan;  fraudulent claims are actually outside the scope of the fixed costs scheme and consequently will not be weeded out by it at all.  Secondly, insurance companies exist for profit.  Did your car insurance premium reduce when fixed costs were first brought in two years ago?  Didn’t think so.

I am afraid, British Public, that you have been duped by your own Government in to thinking that these changes are for the good and for your benefit.  We can’t blame them really.  After all, in times of austerity when cuts make the Government even more unpopular, it is very tempting to go for the quick victory by bringing in seemingly popular changes to balance the destruction.  Unfortunately, these changes are no more than an aftershock to the earthquake of ill-founded and detrimental Governmental policy.

 If you have been involved in an accident call David Mayor or any of our Personal Injury Solicitors for a free consultation on freephone 0800 975 2463, or contact us by email for free expert legal advice.

David Mayor

About David Mayor

David is Head of the Preston Office's Civil Litigation team and deals with all types of private Civil Court disputes. David’s blogs cover his expertise in all aspects of personal injury law from low value Road Traffic Accidents right through to complex large loss claims. David also writes and has a vast array of experience in Public Liability (trips and slips), Employer's Liability (accidents at work), and Motor Claims (motor vehicle accidents, pedestrian accidents).
This entry was posted in Personal Injury.

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