Today (Thursday 23 February) the government announced that it will increase the small claims limit for soft tissue injuries to £5,000 and increase the limit on all other injuries to £2,000. 

Stephen Cavalier, chief executive of Thompsons Solicitors said: “There is no justification for increasing the small claims limit to £5,000 for road traffic related personal injury claims.  The government cannot even pretend that there is any justification and has produced no evidence. This is a craven capitulation to the insurance industry.  

“The suggestion that this will lead to a reduction in insurance premiums is fanciful. The vast majority of insurers have not committed to reducing premiums and nor have they passed on an £8billion windfall from previous changes. 

“The government has also given in to insurers by doubling the small claims limit to £2,000 in other injury cases.  Even the insurers’ own spokesman conceded to the Justice Select Committee earlier this month that the increased small claims limit should not apply to workplace cases. Yet the government suggests that it is prepared to go further still for its insurance friends by holding out the prospect of applying the £5k limit to all personal injury claims. 

“There has never been any suggestion of fraud in workplace claims and they have nothing to do with any supposed ‘whiplash epidemic’. The government has shown its true colours by siding with the powerful and the privileged few against working people and consumers.”