The fiscal impact of the Jackson Proposals: the case of employers’ liability

Practice area: Justice and Legal Affairs | Legal reform | Public Policy
Client: Thompson Solicitors
Published: November, 2011
Keywords: quantitative analysis

The report estimates the fiscal impact of the Jackson Proposals for the reform of personal injury litigation funding arrangements on revenues and expenditures of government and public bodies. Based on survey data collected during Lord Justice Jackson’s investigation, we estimate the effect of the proposed measures on the volume of cases and the success fees charged in employers’ liability cases. In a second step, the effect of the reduction on the revenues of law firms and ATE insurers as well as reductions in recoveries related to personal injury cases by public bodies like the NHS is estimated and compared with savings achieved through the reduction in aggregate damages. The estimates suggest that the proposals will lead to a net loss for the Exchequer.