The standard rate of interest on general damages for pain and suffering and loss of amenities in personal injury cases was fixed at 2% per annum by the House of Lords in Birkett v Hayes [1982] 1 WLR 816; [1982] 2 All ER 70. This was confirmed as appropriate by the Court of Appeal in Lawrence v Chief Constable of Staffordshire [2000] the Times, 25 July.

The appropriate rate of interest for special damages is the rate, over the period for which the interest is awarded, which is payable on the court special account. After seven years at 6%, this rate was reduced to 3% per annum on 1 February 2009, to 1.5% on 1 June 2009 and to 0.5% on 1 July 2009. Interest since June 1987 has been paid daily on a 1/365th basis, even in a leap year such as 1992.

In cases of continuing special damages, half the appropriate rate from the date of injury to the date of trial is awarded. In cases where the special damages have ceased and are thus limited to a finite period, there are conflicting Court of Appeal decisions as to whether the award should be half the appropriate rate from injury to trial (Dexter v Courtaulds [1984] 1 All ER 70) or the full special account rate from a date within the period to which the special damages are limited (Prokop v DHSS [1985] CLY 1037). The House of Lords has confirmed that Department for Work and Pensions benefit should be disregarded when calculating interest on special damages (Wadey v Surrey County Council [2000] 1 WLR 820 (HL)).

The relevant rates since 1965, which are conveniently set out in the White Book at note 7.0.9, are reproduced in table three. Table one records the total of these rates from January 1989. In the left-hand column is shown the month from the first day of which interest is assumed to run. The right-hand column shows the percentage interest accumulated from the first day of each month to 1 October 2009.

Continued use can be made of this table by adding to the figures therein 1/365th of the special account rate from 1 October 2009 onwards. Precision may easily be attained through table two, which records the accumulated total of days at the end of each of the next six months.

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1989 1990 1991 1992 1993 1994 1995
January 163.53 150.32 136.07 123.95 113.68 105.48 97.48
February 162.42 149.11 134.86 123.08 112.81 104.81 96.81
March 161.43 148.01 133.76 122.27 112.19 104.19 96.19
April 160.32 146.80 132.55 121.40 111.51 103.51 95.51
May 159.25 145.63 131.57 120.56 110.85 102.85 94.85
June 158.15 144.42 130.55 119.69 110.18 102.18 94.18
July 157.08 143.25 129.56 118.84 109.52 101.52 93.52
August 155.98 142.04 128.54 117.97 108.84 100.84 92.84
September 154.87 140.83 127.52 117.10 108.16 100.16 92.16
October 153.80 139.66 126.54 116.26 107.50 99.50 91.50
November 152.70 138.45 125.67 115.39 106.82 98.82 90.82
December 151.53 137.28 124.82 114.55 106.16 98.16 90.16

1996 1997 1998 1999 2000 2001 2002
January 89.48 81.46 73.46 65.46 57.88 50.86 43.86
February 88.81 80.76 72.78 64.78 57.29 50.27 43.27
March 88.17 80.17 72.17 64.17 56.73 49.73 42.81
April 87.49 79.49 71.49 63.49 56.14 49.14 42.30
May 86.83 78.83 70.83 62.83 55.56 48.56 41.81
June 86.15 78.15 70.15 62.15 54.97 47.97 41.30
July 85.50 77.50 69.50 61.50 54.39 47.39 40.80
August 84.82 76.82 68.82 60.82 53.80 46.80 40.29
September 84.14 76.14 68.14 60.22 53.20 46.80 39.78
October 83.48 75.48 67.48 59.65 52.63 45.63 39.29
November 82.80 74.80 66.80 59.05 52.03 45.03 38.78
December 82.14 74.14 66.14 58.48 51.46 44.46 38.29

2003 2004 2005 2006 2007 2008 2009
January 37.78 31.78 25.76 19.76 13.76 7.76 1.75
February 37.27 31.27 25.25 19.25 13.25 7.25 1.24

March 36.81 30.79 24.79 18.79 12.79 6.78 1.01 April 36.30 30.28 24.28 18.28 12.28 6.27 0.75 May 35.81 29.79 23.79 17.79 11.79 5.77 0.50 June 35.30 29.28 23.28 17.28 11.28 5.26 0.25 July 34.80 28.79 22.79 16.79 10.79 4.77 0.13 August 34.29 28.28 22.28 16.28 10.28 4.26 0.08 September 33.78 27.77 21.77 15.77 9.77 3.75 0.04 October 33.29 27.27 21.27 15.27 9.27 3.26 November 32.78 26.76 20.76 14.76 8.76 2.75 December 32.29 26.27 20.27 14.27 8.27 2.25

Table two – accumulated total of days

Explanatory note: suppose that interest runs from 1 June 2003 to 13 December 2009. The total to the end of September 2009 is 35.30%. If the rate remains at 0.5% pa, the addition from 1 October 2009 to 13 December 2009 will be 0.50%x(73/365) =0.10%. Thus the grand total from 1 June 2003 to 13 December 2009 will be 35.30+0.10=35.40%.

These tables should assist all those concerned with interest since 1985 to make calculations fluently. The listed rates provide the base for a calculation from 1965. Although the tables’ primary application is to interest on special damages in personal injury cases, they are equally applicable to any other case in which the special account is used in calculating interest.

Table three – rates of interest on special account since 1965

31 October 2009 31
30 November 2009 61
31 December 2009 92
31 January 2010 123
28 February 2010 151
31 March 2010 182
From
1 October 1965 5%
1 September 1966 5.5%
1 March 1968 6%
1 March 1969 6.5%
1 March 1970 7%
1 April 1971 7.5%
1 March 1973 8%
1 March 1974 9%
1 February 1977 10%
1 March 1979 12.5%
1 January 1980 15%
1 January 1981 12.5%
1 December 1981 15%
1 March 1982 14%
1 July 1982 13%
1 April 1983 12.5%
1 April 1984 12%
1 August 1986 11.5%
1 January 1987 12.25%
1 April 1987 11.75%
1 November 1987 11.25%
1 December 1987 11%
1 May 1988 9.5%
1 August 1988 11%
1 November 1988 12.25%
1 January 1989 13%
1 November 1989 14.25%
1 April 1991 12%
1 October 1991 10.25%
1 February 1993 8%
1 August 1999 7%
1 February 2002 6%
1 February 2009 3%
1 June 2009 1.5%
1 July 2009 0.5%

Rodney Nelson-Jones is a partner at Field Fisher Waterhouse