Cameron pledges to curb injury lawyers' fees

David Cameron has pledged to extend the cap on the amount that lawyers can earn from low-value personal injury claims.

In a speech on health and safety this morning, the prime minister promised to “kill off damaging health and safety culture and boost business growth”.

He told an audience of small businesses in the Berkshire town of Maidenhead that health and safety legislation has become an “albatross around the neck of British businesses”, costing them billions of pounds a year and leaving entrepreneurs in fear of speculative claims.

Cameron said: “I want 2012 to go down in history not just as Olympics year or Diamond Jubilee year, but the year we get a lot of this pointless time-wasting out of the British economy and British life once and for all.”

The Ministry of Justice has recently consulted on whether to lift the cap from £10,000 on the value of personal injury cases that can be handled through its fixed-fees portal system.

Responding to the prime minister’s speech, ABI director-general Otto Thoresen said: ” The government is to be commended for grasping the need to tackle our compensation culture. We are pleased that the government will be extending the cap on the amount lawyers can earn from small-value personal injury claims.

“We have long campaigned for reforms to halt the compensation bandwagon to reduce frivolous claims and excessive legal costs. This is essential in reducing the cost of motor insurance.

“Insurers have a key role to play in helping firms manage health and safety. We have produced guidance for firms that dispels any myths around onerous insurance requirements so that they can manage their risks in a sensible and proportionate way, without the constant fear of being sued. We welcome the opportunity to meet with the government to discuss this important issue.”

The speech was also welcomed by RSA. A spokesman said: “We welcome the government’s announcement this morning. The success of SMEs is inextricably linked to the nation’s economic recovery and the sector has rightly been placed at the forefront of the government’s strategy for fuelling growth. We look forward to engaging with them on this.”