On 21 November 2024, the Lord Chancellor published the delayed statutory review of the whiplash tariff.

Having set out the basis on which she was recommending a 14-15% increase across the board for the tariff figures (for detail see our previous alert of 22 November 2024 here), the Lord Chancellor confirmed that there would then be a period of consultation with the Lady Chief Justice.

That consultation is now complete and in a written statement to Parliament on 20 March 2025, Sarah Sackman, Minister of State for Justice, confirmed that she was laying the draft Whiplash Injury (Amendment) Regulations 2025 by way of affirmative procedure.  The affirmative procedure is required to be used by the Civil Liability Act and means that the draft Regulations will need to be actively approved by both Houses of Parliament.

The Minister's statement confirmed that subject to approval, the Regulations will increase the fixed tariff of compensation for whiplash injuries lasting up to two years which occur on or after 31 May 2025.

There was previously some speculation that the Regulations would have retrospective application. Yesterday's announcement clarifies our understanding that the increased tariff applies in cases where the accident is on or after 31 May 2025.

The draft Regulations amend the Whiplash Injury Regulations 2021 to now include:

(i)Table 1 where the cause of action accrues before 31st May 2025; and

(ii)Table 2 where the cause of action accrues on or after 31st May 2025.

Table 2 shows the tariff that will apply for accidents on or after 31 May 2025 and the figures in that table are unchanged from those set out in the statutory review from November 2024.

There are no other changes made to the Whiplash Injury Regulations 2021.

For more information or advice, please contact a member of our Strategic Advisory Team.