The Department of Justice recently launched a consultation on how the discount rate or “real rate of return”, used by the courts to determine the size of personal injury awards, should be set.

In its response to the consultation, the Bar Council acknowledged that the legal framework in Northern Ireland should be updated, as it already has been in the rest of the UK.

It said there is “urgent need to take action on the rate given that the current situation is directly detrimental to the interests of citizens in Northern Ireland, particularly those who have very serious injuries with long-term effects”.

The Bar said it “[regards] the work in setting the rate as largely an expert actuarial exercise and therefore consider that the framework used in Scotland lends itself best to this”.

As the setting of the rate is “primarily an actuarial exercise which should involve independent expertise”, it said it would be appropriate for the Government Actuary to set the rate, as per the Scottish model, rather than the Department of Justice, as per the England and Wales model.

The Bar also agreed that the personal injury discount rate should be reviewed on a regular basis, proposing a review every five years, in line with the rest of the UK.