Millions of people every year are affected by personal injuries in the UK. If you’ve suffered a personal injury, you may be entitled to compensation — especially for serious injuries that affect your health, finances, and future well-being. But one key factor in determining your payout is the Personal Injury Discount Rate (PIDR), which changed in January 2025.
In this guide, we’ll explain what the PIDR is, how it impacts personal injury claims, and what the 2025 changes mean for your compensation.
What is the personal injury discount rate?
The Personal Injury Discount Rate is a percentage set by the UK government that is used to calculate lump sum payouts in personal injury claims. Under the Civil Liability Act 2018, the PIDR is reviewed every five years.
The rate is designed to ensure every claimant will receive the correct amount to cover their general damages and future financial needs, such as medical care, rehabilitation, and lost earnings.
How does it work?
- A higher PIDR means a lower compensation payout.
- A lower PIDR results in higher compensation for claimants.
Why does the PIDR matter for your compensation?
If you’re making a personal injury claim, your compensation should cover all financial losses related to your injury. That includes long-term future financial needs like medical care, lost earnings, and even home adaptations and equipment if the needs arise.
In January 2025, the PIDR changed to +0.5% reducing the amount awarded for future losses compared to previous claims. This means if you’re starting a claim now, your final settlement may be lower than it would have been under the previous rate.
How does the current PIDR affect personal injury claims?
The January 2025 +0.5% Personal Injury Discount Rate means:
- Lower payouts for future losses – Claimants receiving lump sum compensation will get reduced amounts for ongoing care, rehabilitation, and lost income.
- Impact on settlement offers – If your claim started before January 2025 and is still ongoing, any previous settlement offers may no longer apply.
- Effect on new claims – If you’re starting a new claim, the +0.5% rate means your payout may be lower than expected.
How does the PIDR affect different types of compensation?
Compensation in personal injury claims falls into two main categories:
General damages
These cover the pain, suffering, and impact of your injury, and the amount you receive is not affected by the PIDR. For an estimate of the amount you can expect to receive in general damages for a personal injury, use our helpful compensation calculator.
Special damages
Special damages cover financial losses resulting from your injury, including medical expenses, lost earnings, and home adaptations.
The PIDR affects future financial needs in a claim, which means it affects special damages rather than general damages. With the +0.5% rate, the amount awarded for special damages is lower than before, while general damages are unaffected.
What should you do if you’re making a claim?
The January 2025 PIDR changes might have you worried about whether your compensation is affected or not. To make sure you receive the maximum level of compensation possible, follow these steps:
- Check if your case is affected — If your claim was ongoing before January 2025, ask your solicitor whether the new PIDR affects your settlement.
- Get in touch — An experienced personal injury solicitor from Injury Lawyers 4u can help you understand how the PIDR applies to your case.
- Start financial planning — If you receive a lump sum payout, consult with a financial advisor to ensure your compensation lasts and supports your long-term needs.
Making a personal injury claim?
The recent change in the PIDR means that many serious injury claimants could receive lower compensation than before. Because of this, it’s important to have expert legal support in your corner to secure the maximum level of compensation.
Making a claim? At Injury Lawyers 4u, we’ll treat you and your case with the utmost respect, as well as offer you our No-Win, No-Fee guarantee. That means we’ll only charge you for our services if your claim is successful. So, for a free consultation, get in touch today and see how we can help.
Frequently asked questions
Should I delay making a personal injury claim due to the PIDR change?
Delaying your claim could result in missing important deadlines. One of our solicitors can help you navigate the impact of the PIDR and get the most out of your compensation.
Can I challenge my compensation amount if the PIDR affects my claim?
Once a settlement is agreed upon, it is usually final. However, if you are in the negotiation stage, our solicitors could help ensure your claim is fairly assessed under the new PIDR.
How do I know if my ongoing claim is affected by the new PIDR?
If your case was already in progress before January 2025, your compensation calculations may have changed. Speak to one of our solicitors to understand how the new rate impacts your claim and whether previous settlement offers are still valid.