The fixed tariff for whiplash damages is set to see a 15% increase under the Whiplash Injury (Amendment) Regulations 2025, for injuries lasting up to 2 years where the cause of action accrues on or after 31 May 2025. The original Whiplash Injury Regulations 2021 will continue to apply to the relevant whiplash injuries that accrue before 31 May 2025. This increase is designed to account for inflation since 2021 and provide a buffer for expected inflation until 2027 and hopes to ensure that Claimants continue to receive appropriate compensation.

Whilst compensators and their representatives opposed an uplift as it would increase the likelihood of higher motor premiums, Claimant representatives do not believe that the increase is enough, and inflation, coupled with the cost of living, should have resulted in an above-inflation increase.

Although the Association of Personal Injury Lawyers welcomed the uplift, they do not agree that the 15% increase was enough. The Association’s president, Kim Harrison, notes that the increase would have been at 22% if the Lord Chancellor increased the tariff in line with inflation using the Consumer Price Index, as opposed to making predictions about future inflation. Harrison explains that “the outcome of this review has made an unjust situation even worse [where] increases in inflation have been eroding injured people’s damages since the tariff was introduced [as it was] set at an insulting, arbitrary level to begin with”.

Sue Brown, Chair of the Motor Accidents Solicitors Society, says that there remains a fundamental problem with the compensation system. While an annual review of the buffer for future inflation may assist in improving the system, this was rejected as it could lead to a cycle of delayed claims. Claimant advice would be to wait before settling to benefit from an annual increase.

It appears that Claimants are still far from being satisfied with the available compensation for whiplash injuries. However, a further review is set to take place by 22 May 2027, which may conclude with a further increase. 

Consequently, an increase to the tariff valuation together with the Judicial College Guideline increase for non-tariff injuries, may result in a significant number of claims being re-valued above £5,000, necessitating allocation to the fast track. Will the small claims track limit be increased to reflect this?