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MPs call for halt to RTA reforms

14 March 2013
Issue: 7552 / Categories: Legal News
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"Pace & extent of change" causes concern in the Commons

Seven MPs have signed an early day motion (EDM) calling on the government to re-think its personal injury reforms.

The EDM, sponsored by Labour’s David Crausby MP, expresses concern for the “pace and extent of change” in the motor accident claims system, “in particular” the proposal to raise the small claims limit for road traffic accident (RTA) cases from £1,000 to £5,000.

It warns that raising the limit “will drastically reduce access to justice for the genuine victims of road accidents”, and notes that the vast number of changes to the claims process “will fundamentally change civil litigation in the UK and alter the balance between claimants and defendants”.

It urges the government not to proceed until a single impact assessment has been conducted of all the Jackson reforms, the referral fee ban, the introduction of ABSs and the proposed extension of the RTA portal to employers’ and public liability cases.

The EDM was signed by Labour MPs Ronnie Campbell, Martin Caton, Alan Meale and Linda Riordan, and Liberal Democrat MPs Andrew George and Bob Russell.

Justice Secretary Chris Grayling confirmed last week that the Portal scheme will be extended to include employers’ and public liability cases in July, while in April fixed costs for RTA portal cases worth less than £10,000 will be reduced from between £400-£1,200 to between £200-£500.

Overall, claimant solicitors are expected to lose £200m in income. About 750,000 claims valued at £10,000 or less were made last year, accounting for 90% of RTA claims.

Issue: 7552 / Categories: Legal News
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