Research shows 'compensation culture' is a myth
17th Apr 2008
Claims about compensation culture spiralling out of control have been contradicted by research carried out at Warwick University’s School of Law.
The research shows that the number of claims going through the courts has actually fallen rather than increased over recent years. This reinforces statements from both MPs and the Government that compensation culture is largely a myth.
The Warwick researchers wanted to see whether changes introduced in the Management of Health and Safety at Work regulations 2003 had any impact on the number of compensation claims in relation to workplace incidents and accidents.
They analysed the number of claims going through the courts between 1999 and 2003. Contrary to popular perception, they found there was dramatic fall in numbers. The number of personal injury actions in the Queen’s Bench Division of the High Court fell from 1187 in 1999 to 570 in 2003.
It was a similar story in the County Courts where the number of small claims recorded under the heading of, Negligence – personal injury, fell from 3560 in 1999 to 2210 in 2003.
The research only measures one area of course but the findings are backed up by other sources. The Constitutional Affairs Select Committee, which scrutinised the Compensation Bill as it made its way through Parliament, came to the conclusion that contrary to all the publicity, Britain is not moving towards a compensation culture driven by a significant increase in litigation.
The Select Committee also observed that alleged fears over health and safety issues have sometimes been used by organisations as an excuse to ban activities that they don’t want to provide for purely financial reasons.
The Government agreed and made it clear that one of its objectives in the Compensation Act was to tackle perceptions that can lead to a disproportionate fear of litigation and risk averse behaviour.
Hopefully, the Warwick University research together with statements such as those from the Select Committee and the Government will go some way to exploding the myth of compensation culture which has done so much damage.
Many genuine injury victims have been discouraged from making a claim and getting the damages they deserve because they have been made to feel they are somehow doing something wrong.
Nothing could be further from the truth. People who have been injured as a result of someone else’s negligence are entitled to compensation and they should not be made to feel uneasy about asserting their rights. Anyone is this position should seek legal advice from David Phillips and Partners as soon as possible. Call Stephen Higham, partner in the personal injury department, for free, confidential advice on 0800 027 7870.