The Lord Chancellor has announced that the discount rate to be applied to lump sums arising from personal injury claims will be reduced from the current 2.5% to -0.75% from 20 March 2017.

The rate had remained unchanged since 2001.

While not directly applicable to most employment claims, such damages are sometimes awarded in discrimination and detriment claims. This change will have the effect of increasing any such awards.

The MoJ announcement can be found here and an official explanation of the reasons for the change can be found here.