House of Lords challenge expected

The Court of Appeal has decided to uphold the a landmark decision relating to the use of periodic payments for calculating payouts for personal injury cases.

The case Thompstone v Thameside & Glossop Acute Services NHS Trust ruled that an alternative index to the retail price index should be used to calculate future costs of care.

The use of a different index would entail significantly increased costs for compensators. Bond Pearce has estimated that, if another index were to be adopted on a large scale, it could cost the NHS up to £1.7bn.

It is expected that a further appeal will be mounted, which will see the case being referred to the House of Lords.

Last month, claimant solicitors said that the appeal, regardless of its outcome, would inevitably lead to an increased uptake of periodic payments.