The standard rate of interest on general damages for pain and suffering and loss of amenities in personal injury cases was fixed at 2% a year 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% a year 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 1 records the percentage total of these rates from January 1991. 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 December 2011.
Continued use can be made of this table by adding to the figures therein 1/365th of the special account rate from 1 December 2011 onwards. Precision may easily be attained through table 2, which records the accumulated total of days at the end of each of the next six months.
Suppose that interest runs from 1 June 2003 to 13 February 2012. The total to the end of November 2011 is 36.38%. If the rate remains at 0.5% a year, the addition from 1 December 2011 to 13 February 2012 will be 0.5% x 75/365 = 0.10%. Thus the grand total from 1 June 2003 to 13 February 2012 will be 36.38 + 0.10 = 36.48%. These tables should assist all those concerned with interest since 1991 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.
Andrew Morgan is a partner at Field Fisher Waterhouse
Table 1 - rates of interest on special account since 1991 (%) clear="all">
1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | |
---|---|---|---|---|---|---|---|
January | 137.15 | 125.04 | 114.76 | 106.57 | 98.57 | 90.57 | 82.55 |
February | 135.94 | 124.17 | 113.89 | 105.89 | 97.89 | 89.89 | 81.87 |
March | 134.85 | 123.35 | 113.28 | 105.28 | 97.28 | 89.25 | 81.25 |
April | 133.64 | 122.48 | 112.6 | 104.6 | 96.6 | 88.57 | 80.57 |
May | 132.65 | 121.64 | 111.94 | 103.94 | 95.94 | 87.92 | 79.92 |
June | 131.63 | 120.77 | 111.26 | 103.26 | 95.26 | 87.24 | 79.24 |
July | 130.65 | 119.93 | 110.6 | 102.6 | 94.6 | 86.58 | 78.58 |
August | 129.63 | 119.06 | 109.92 | 101.92 | 93.92 | 85.9 | 77.9 |
September | 128.61 | 118.19 | 109.24 | 101.24 | 93.24 | 85.22 | 77.22 |
October | 127.62 | 117.34 | 108.58 | 100.58 | 92.58 | 84.56 | 76.56 |
November | 126.75 | 116.47 | 107.91 | 99.91 | 91.91 | 83.88 | 75.88 |
December | 125.91 | 115.63 | 107.25 | 99.25 | 91.25 | 83.23 | 75.23 |
1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | |
---|---|---|---|---|---|---|---|
January | 74.55 | 66.55 | 58.97 | 51.95 | 44.95 | 38.86 | 32.86 |
February | 73.87 | 65.87 | 58.37 | 51.35 | 44.35 | 38.35 | 32.35 |
March | 73.25 | 65.25 | 57.82 | 50.82 | 43.89 | 37.89 | 31.88 |
April | 72.57 | 64.57 | 57.22 | 50.22 | 43.38 | 37.38 | 31.37 |
May | 71.92 | 63.92 | 56.65 | 49.65 | 42.89 | 36.89 | 30.87 |
June | 71.24 | 63.24 | 56.05 | 49.05 | 42.38 | 36.38 | 30.36 |
July | 70.58 | 62.58 | 55.48 | 48.48 | 41.89 | 35.89 | 29.87 |
August | 69.9 | 61.9 | 54.88 | 47.88 | 41.38 | 35.38 | 29.36 |
September | 69.22 | 61.31 | 54.29 | 47.29 | 40.87 | 34.87 | 28.85 |
October | 68.56 | 60.73 | 53.71 | 46.71 | 40.37 | 34.37 | 28.36 |
November | 67.88 | 60.14 | 53.12 | 46.12 | 39.86 | 33.86 | 27.85 |
December | 67.23 | 59.56 | 52.54 | 45.54 | 39.37 | 33.37 | 27.35 |
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
---|---|---|---|---|---|---|---|
January | 26.85 | 20.85 | 14.85 | 8.85 | 2.83 | 0.96 | 0.46 |
February | 26.34 | 20.34 | 14.34 | 8.34 | 2.32 | 0.92 | 0.42 |
March 25.88 19.88 13.88 7.86 2.09 0.88 0.38 April 25.37 19.37 13.37 7.35 1.83 0.83 0.33 May 24.87 18.87 12.87 6.86 1.59 0.79 0.29 June 24.36 18.36 12.36 6.35 1.33 0.75 0.25 July 23.87 17.87 11.87 5.85 1.21 0.71 0.21 August 23.36 17.36 11.36 5.34 1.17 0.67 0.17 September 22.85 16.85 10.85 4.83 1.12 0.62 0.12 October 22.36 16.36 10.36 4.34 1.08 0.58 0.08 November 21.85 15.85 9.85 3.83 1.04 0.54 0.04 December 21.35 15.35 9.35 3.34 1 0.5
Table two - accumulated total of days
Table three - rates of interest on special account since 1965
31 December 2011 | 31 |
31 January 2012 | 62 |
29 February 2012 | 91 |
31 March 2012 | 122 |
30 April 2012 | 152 |
31 May 2012 | 183 |
30 June 2012 | 213 |
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% |
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