Catastrophic injury - market insights April 2025

Uplifted solicitor guideline hourly rates  

In December 2024 Sir Geoffrey Vos, the Master of the Rolls, announced a 3.65% increase to Guideline Hourly Rates, with effect from 1 January 2025. This follows a 6.66% increase in January 2024.  

New personal injury discount rate in Scotland, Northern Ireland and England and Wales   

On 2 December 2024 the Lord Chancellor, Shabana Mahmood, announced that PIDR in England and Wales will be adjusted from -0.25% to +0.5% as of 11 January 2025. 

The PIDR must be reviewed on a five-year cycle. 

This follows the Government Actuary’s reports on 26 September 2024 covering Scotland and Northern Ireland which confirmed that the PIDR of +0.5% will apply to both jurisdictions. Both rates came into effect on 27 September 2024. 

The previous rate of -1.5% in Northern Ireland was set in March 2022. The previous rate in Scotland was -0.75% and this was set in September 2019. 

The next planned reviews of the PIDR for Northern Ireland and Scotland will commence in July 2029. 

We have also identified PIDR as a key update in the Healthcare section.

The procedure for determining mental capacity in civil proceedings  

A final report following a Civil Justice Council (CJC) working group’s consultation on mental capacity was published on 11 November 2024. This proposes the creation of a ‘menu of options’ for the court to ensure an appropriate approach can be adopted in each case. 

In our response to the consultation we recommended that in personal injury and clinical negligence cases there should be clearer guidance on the role of legal representatives in raising an issue with the court regarding the litigation capacity of an unrepresented party and provide an avenue for them to do so. However, legal representatives should not owe a duty to those they do not represent. 

In the CJC’s final report, the group noted: “the strong view of the working group, and the almost unanimous view of the judges and practitioners whom it consulted, that there should be clear provision and guidance on the procedure for the determination of issues of litigation capacity”. 

Sir Geoffrey Vos, Master of the Rolls, Head of Civil Justice and Chair of the CJC acknowledged that the report “is only the beginning”. 

We have also identified mental capacity as a key topic in the Healthcare section.

Review of litigation funding 

In April 2024, a CJC working group published terms of reference for a review into third party litigation funding (TPLF). The group then launched a consultation and interim report on 31 October 2024, which closed on 31 January 2025. The report focused on: 

• The development of TPLF in England and Wales 
• The development of self-regulation of TPLF 
• The different approaches to regulation 
• The approaches to regulation in other jurisdictions 
• The relationship between costs and funding 
• Other litigation funding options available 

With the final report of CJC due in the summer of next year, this could mean legislation is not introduced until 2026, subject to the CJC’s recommendations. 

Changes to pre-action protocols 

The pre-action protocols (PAPs) in England and Wales are under review. 

An interim report was published by the CJC in November 2021. Phase one of the final report was published in August 2023. The phase two report was published on 20 November 2024. 

The most recent phase two final report sets out the CJC’s recommendations for reform of specific PAPs, including the personal injury protocol. The report notes “The Rehabilitation section needs to signpost to the Serious Injury Guide for claims in excess of £250k damages and should highlight that by agreement it can be applied to lower value injuries where there will be an element of continuing future loss.”  

In response to the report, Sir Geoffrey said: “This second phase of work provides important recommendations about specific subject-area protocols. I very much hope that their implementation will be prioritised.” 

Expert witness market developments 

The annual Bond Solon expert witness survey, published in November 2024, provides a snapshot into the current issues facing the expert witness market. We highlight the key points which will be of particular interest to you: 

• Improving standards – in response to the question: “have you experienced ‘hired gun’ experts in your field in the last year?”, 36.96% replied ‘yes’. 39.66% of the respondents had also come across an expert witness who they felt didn’t possessed the appropriate qualifications and experience. In our view, this reflects the judicial trend for properly qualified and balanced experts. Recent judgments indicate that the judiciary is ever more willing to impose sanctions for poorly chosen experts. 
• Relations with instructing solicitors – in the last 12 months, 23.28% of the respondents had faced undue pressure from instructing solicitors to change their expert opinion. When asked whether there should be a system for experts to notify the Solicitors Regulation Authority about problems between experts and solicitors, 91.25% answered ‘yes’. 
• Mentoring for experts - the majority of respondents thought a formal mentoring scheme for expert witnesses with an accredited provider would help improve standards. 
• New methods - 90.7% of experts have not used AI to assist in their work. 

Costs management – back in focus 

Could costs budgeting become the default position for civil claims, even those over £10m? A hot topic of the moment, reform of budgeting is on the CJC’s agenda for this year. 

Annual Survey for Hours and Earnings (ASHE) 2024 figures published  

In October 2024, the Office for National Statistics (ONS) published the 2024 ASHE first release data. At the 80th centile of ASHE 6115 (Table 26.5a) which is most commonly used for periodical payment order indexation, the percentage change was 4.09% compared to the 2023 revised figure, which is higher than inflation (measured by the RPI or CPI) over the same period. 

There was also a higher than usual adjustment between the 2023 first release and revised figures because, for the first time, the ONS has changed its methodology by counting more high earners in each profession, to improve sample size and data quality. 

Case developments   

Breaking down expert witness fees  

JXX v Archibald [17.01.25]

The costs judge considered whether the disputed medical expert fees of £120,000, where the expert was instructed through an agency, should be broken down.  

The judge held that the claimant’s firm had a choice: 1) either the invoices could be assessed on the basis of the expert’s evidence and agency’s work (by disclosing the breakdown of the agency’s fees); or 2) on the hypothetical basis there had been no agency involvement and that the fees claimed were solely for the expert’s evidence. With either option, the defendant would be entitled to produce any comparative evidence to challenge whether the fees were justified. 

Court orders parties to mediate  

DKH Retail and others v City Football Group [24.11.24] 

Shortly before the trial was due to start, the claimants applied for the court to order the parties to mediate following Churchill v Merthyr Tydfil County Borough Council [2023] and the subsequent amendments that have been made to the Civil Procedure Rules with effect from 1 October 2024. 

Although the defendant argued that there was not a realistic prospect of settlement by using mediation, the High Court judge disagreed, ordering the parties to mediate.  

In January 2025 the parties notified the court that they had settled their dispute. Reflecting the court’s attitude to ADR, the judgment notes: “mediation is capable of cracking even the hardest nuts”.