Adjournment debate, in Parliament, on Smalls Claims limit – 30th March 2006

On the 30th March 2006 a key adjournment debate took place in Parliament upon the potential increase in the small claims limit, for personal injury and housing disrepair cases, which has been in place at £1000 since 1991.

Alan Beith MP, Liberal Democrat spokesman, confirmed that his Select Committee felt that the limit needed to be reviewed and raised to £2500.

The Better Regulation Task Force is quoted, by James Brokenshire MP, as recommending an increase to £5000 and thus being in the pocket of the insurance industry.

Keith Vaz MP, a member of the Select Committee, said “ …I say this in no way to sound disloyal but we may have made a mistake in recommending that the limit be raised to £2500 ….and that raising the limit …… is much more unfair to represented litigants.”

Andrew Dismore, Labour MP for Hendon, and a personal injury lawyer, urged members to have regard for the fact that damages have manifestly failed to keep pace with inflation and James Brokenshire, MP, agreed saying there was a need to look at the limit and whether there is justification for increasing it given the rate of inflation since 1991 and the level of damages over that period.

Harriet Harman MP, Minister, said, “As today’s debate demonstrates there are strong views against, as well as for, an increase in the limit for personal injury claims. …The Government are considering all those arguments carefully….an increase in the limit to £2500 or even £5000 would affect tens of thousands of cases so before considering such an increase we must consider it’s impact fully and be sure that we are increasing, not reducing, access to justice.”

Watch this space!