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Last Updated: Friday, 27 January 2006, 15:05 GMT
Compensation Bill
AIM
This bill will tackle the problems associated with the perception of a 'compensation culture' to ensure that invalid claims are discouraged and resisted.

MAIN PROVISIONS
TIMETABLE
Responsible department: Dept for Constitutional Affairs
Origin: House of Lords
Introduced: 2 Nov 2005
Second reading: 28 Nov 2005
Committee stage: 15 & 20 Dec 2005, 16, 23 & 25 Jan 2006
Report stage: 7 March 2006
Third reading: 27 March 2006
Consideration of Commons amendments: 19 July 2006
COMMONS:
First reading: 27 March 2006
Second reading: 8 June 2006
Committee stage: 20, 22, 27 & 29 June 2006
Report stage: 17 July 2006

ROYAL ASSENT: 25 July 2006
Proposals are likely to include:

  • Strict regulation of companies which encourage accident victims to make claims

  • Clarification of the existing common law on negligence

    BACKGROUND
    The recent increase in litigation arose partly from the introduction of "no win, no fee" deals with lawyers in the late 1990s, and the birth of claims-management firms.

    Before the election, the Government established an Action Group within the Department for Constitutional Affairs, comprising around thirty public, private and Government bodies. Their task was to resolve the compensation culture, but also to make improvements to the system for the genuine claimant.

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