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'Compensation Culture': Government Forced to Reconsider ‘No Win No Fee’

Political conference season is about to kick off and one of the first bills under scrutiny could result in big changes to the ‘No Win, No Fee’ legal arrangements currently used for accidents.
Finance, Lifestyle - 25 August 2011   Download IconContent available for download:  
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  News Hooks:

With the start of the political conference season in two weeks time, the Legal Aid, Sentencing and Punishment of Offenders Bill will be considered at all party conferences in an attempt to change the current ‘No Win, No Fee’ legal arrangements commonly used for accidents at work or in a public place. Under the current system, the fee for the legal services provided is only payable on the condition there is a favourable result, with the fee recovered from the losing party.

The argument for amending conditional fee arrangements is to avoid rising insurance premiums which it is claimed must be put up because of a rise in accident claims, as well as the wider view that the UK is suffering from a ‘compensation culture’ brought on by the lack of financial risk for claimants. However, critics of the proposed Bill, led by the Access to Justice Campaign, argue 25% of accident victims never made a claim and the number of accident claims has not risen at all in the last 10 years.

Under the new Bill, accident victims will be expected to either pay the legal fees in advance or out of their compensation payments. This may mean some of the 727,000 who suffered an injury at work in one year will either be financial unable to pursue their case or the compensation awarded minus the legal costs render it worthless. This is particularly worrying as just under a third of these (233,000) were off work for at least four days.

. Introduction:

In two weeks time, a new Bill will be considered at all party conferences that, if turned to law, will see current ‘No Win, No Fee’ legal arrangements changed; a welcome outcome for those who believe we are living in a ‘compensation culture’. However with conditional fee arrangements amended, accident victims will be expected to either pay their legal fees up front or out of their compensation payment, leading many to argue that the Bill will marginalise a large portion of society.

So just what impact will this Bill have on our society?

Joining us to discuss this further is Rob Bhol, Senior Lawyer at DBS Law, an organisation active in the Access to Justice Campaign.

. Suggested Questions:

What does the research reveal about accidents at work/accident claims in our area?

What does the new Bill involve?

What is the justification for changing ‘No Win No Fee’ arrangements?

Why are people opposed to changing it?

Can you give an example of specific cases which, under the new bill, would be affected?
What is the Access to Justice Campaign?