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UK Government abandons whiplash reforms in Prisons and Courts bill

Government abandons Prisons and Courts Bill and whiplash reforms

Date published

Only a couple of months ago the Prisons and Courts Bill was published ready for debate in Parliament.  However the snap general election meant the bill was dropped as there was no chance to debate it before Parliament was dissolved.

The proposed whiplash reforms included in the bill were designed to limit fraudulent whiplash claims, and included an increase in the small claims limit to £5,000 for whiplash claims only.

The whiplash measures were expected to cut motor insurance premiums by about £40 per year. With a year that started with record high insurance premiums, due in part to the rise in Insurance Premium Tax and the Ogden rate reforms, this potential saving was a rare piece of good news for motorists.

However insurers are still hoping for good news. Cracking down on bogus insurance claims has been a government policy for a number of years and it could be that this setback will provide an opportunity to hone the reforms and get them right for consumers.