How Are Compensation Payouts Calculated?

By Stephen Anderson. Last Updated 15th October 2024. In this guide, we will answer the question ‘How are compensation payout amounts calculated in personal injury claims?’. If you suffer an injury due to a relevant third party breaching their duty of care, you may be due compensation. In this guide, we’ll discuss how compensation is calculated and what you could claim compensation for. Generally, compensation can be split into two heads; we’ll discuss these heads and what each could cover. We will also discuss how the Judicial College Guidelines (JCG) could help legal professionals with valuing your claim.

While we can’t offer a list of compensation payouts for the UK in 2023, we can offer some of the guideline amounts shown in the 2022 edition of the JCG, which is the latest release. We’ll also explore how a No Win No Fee solicitor could give you more information on your potential compensation payout and guide you through the personal injury claim process.

Read on to learn more about compensation in personal injury claims, or contact one of our advisors to get started:

Compensation payout amounts being calculated

Select A Section

  1. How Are Compensation Payout Amounts Calculated?
  2. What Are General And Special Damages?
  3. Does The Type Of Accident Affect Your Compensation Payout Amount?
  4. Could Anything Be Deducted From My Payout Amount?
  5. Could Anything Be Added To Your Compensation Payout?
  6. Compensation Payouts For Personal Injury Claims
  7. Can I Claim Compensation Payouts On A No Win No Fee Basis?
  8. Read More Claims Guides

How Are Compensation Payout Amounts Calculated?

You might be eligible to claim compensation if you were injured due to negligence. However, you may be wondering, ‘how is compensation calculated?’. The personal injury claim payout you might receive is determined by a number of factors:

  • The severity of your injury
  • The impact of the injury on your life in the long term
  • How long it takes you to heal or if you are likely to heal at all
  • If you are left unable to work

Additionally, solicitors are guided by a list of compensation payouts from the Judicial College when valuing claims. However, the personal injury claim payout you might receive may not match the amounts shown in this publication as it is only a guide.

Using legal assistance may be beneficial to support you and help you gather the evidence you may need for your claim. Our panel of solicitors have years of experience in personal injury claims and are able to help you pursue a personal injury claim payout.

What Are General And Special Damages?

When calculating compensation payout amounts, solicitors use two different Heads of Loss. These are:

  • General damages. This element aims to compensate you for any pain, suffering or loss of amenity. To determine the severity of your injuries, you’ll require a medical assessment during your claim. Loss of amenity is where a financial value is placed onto something you enjoy doing but can’t participate in because of your injuries.
  • Special damages. In this element, any expenses, losses or costs could be claimed back. As an example, if you pay for fuel or parking linked to hospital visits, this cost could be added to the value of your claim.

Does The Type Of Accident Affect Your Compensation Payout Amount?

Generally, if your personal injury claim is successful, then the amount you receive will not be affected by the kind of claim you make. This is because in most cases compensation amounts are awarded on a case by case basis, with the individual circumstances of each case being taken into account.

However, there are some exceptions to this in the form of criminal and whiplash injuries. Criminal injury claims are made through the Criminal Injuries Compensation Authority (CICA), which has its own tariff. Payments are made in line with these tariffs.

Similarly, since May 31st 2021, drivers or passengers aged over 18 with injuries valued at £5,000 or under receive compensation in line with the tariffs set out by the Whiplash Injury Regulations 2021. In most of these cases, the government’s Official Injury Claim Portal will handle your compensation claim. Amounts can still vary, so it can be beneficial to work with a solicitor to ensure that all aspects of your claim are considered.

Contact our team to find out if either of these tariffs will affect your claim.

Compensation Payout Guide – How Long Do I Have To Claim?

The time limit for making a personal injury claim is set out by the Limitation Act 1980. This legislation states that you will have three years from the date of your accident to start your claim. Generally, no compensation amounts are paid out to those who attempt to claim outside the time limit that is relevant to them.

However, there are some exceptions to the limit mentioned above. For example, the time limit is frozen for those under the age of eighteen, and they cannot claim for themselves until their eighteenth birthday. While the time limit is frozen, a litigation friend can make a claim for them.

The time limit is also suspended for those who lack the mental capacity to claim for themselves. In these cases, it will only be reinstated if they regain the needed capacity. Otherwise, their claim can be made by a litigation friend.

For more information on time limits and compensation calculation in personal injury claims, keep reading our compensation payout guide. Or, contact our team of advisors to find out if you could be eligible to claim.

Could Anything Be Deducted From My Payout Amount?

Let’s look at what might be deducted from any compensation you receive when making a personal injury claim. They include:

  • Success fees. When using a No Win No Fee solicitor, you won’t pay them any fees if your claim is lost. However, if they win your claim, they can charge a success fee. This is capped at 25% of your compensation under Conditional Fee Agreements.
  • Insurance premiums. Many personal injury solicitors will require you to have  After The Event (ATE) insurance. The insurance policy should mean you don’t have to pay any costs out of your own pocket. This type of insurance will be arranged by your solicitor.
  • Split liability deductions. There are times when you might be found to be partly to blame for the accident. If your solicitor agrees that you were 25% to blame, for instance, then your compensation payment would be reduced accordingly.
  • Potential Costs – If you are pursuing your claim alone you may find that you may need to pay for medical expert reports, police reports and any administration reports.

Also if you are in receipt of state benefits, receiving compensation may affect your payments.

If you decide to work with a solicitor from our panel, their service will be funded by a Conditional Fee Agreement (CFA). This will clearly explain any deductions that might be made. Generally, personal injury solicitors charge the full 25% success fee when using a CFA. However, our panel are sometimes able to reduce this percentage.

Could Anything Be Added To Your Compensation Payout?

So is there anything that could be added to compensation payment amounts? Well, yes and they include:

  • Future Losses – When you make a successful personal injury claim you can be awarded two heads of claim. These are general damages and special damages. General damages look to compensate for the pain and suffering caused by the injury. However, they also include any future pain and suffering that could be caused. Special damages look at reimbursing for any expenses and losses incurred. However, they also include predicted losses and expenses you may face in the future.
  • Settlements in multiple injury cases. Where your claim is based on multiple injuries, your compensation could be increased to reflect the additional suffering you’ve endured.

If you’d like to know what factors could affect your compensation payout amount, please contact our team today.

Compensation Payouts For Personal Injury Claims

You may be asking, “How are compensation payout amounts calculated?” Personal injury compensation can include general damages and special damages.

General damages compensation relates to the pain, suffering and loss of amenity caused by the injuries you’re claiming for. Those who value personal injury claims may consult the Judicial College Guidelines (JCG). These guidelines provide compensation brackets for many different kinds of physical and psychological injuries.

You can view the list of compensation payouts, which are based on JCG entries, in the table below for guidance. Please note that the first entry is not taken from the JCG, and the payout for each claim is ultimately determined on a case-by-case basis.

Type of ClaimSeverityCompensation Guidelines
Multiple Serious Injuries And Special DamagesSeriousUp to £1,000,000+
Head or Brain InjuryVery Severe£344,150 to £493,000
Leg InjuryAbove-Knee Amputation of One Leg£127,930 to £167,760
Arm Injuries Severe Injuries£117,360 to £159,770
Facial ScarringVery Severe£36,340 to £118,790
Chest InjuriesDamage to Chest and Lungs (c)£38,210 to £66,920
Psychiatric InjuryModerately Severe£23,270 to £66,920
Facial DisfigurementLess Severe Scarring£21,920 to £59,090
Post Traumatic Stress Disorder Moderate£9,980 to £28,250

Your personal injury compensation may additionally include special damages. This covers any financial losses directly caused by your injuries. For instance, you may need to take an extended period of leave from work. If this has caused a loss of earnings, you could potentially claim these back under special damages.

Other related expenses, such as the cost of prescriptions or mobility aids, may also be covered under special damages. You’ll need to provide certain documents as evidence to claim special damages. Examples can include bank statements and wage slips.

To learn how is compensation calculated, contact our advisors today.

Can I Claim Compensation Payouts On A No Win No Fee Basis?

Personal injury claims could be supported by No Win No Fee solicitors. If you decide to hire a solicitor to support your claim, their services could be provided under the terms of a Conditional Fee Agreement (CFA). A CFA is a type of No Win No Fee arrangement.

When using the support of No Win No Fee solicitors for personal injury claims, you usually won’t be asked to pay an upfront solicitor’s fee or cover any ongoing costs.

If a personal injury claim is successful, a success fee is taken from the compensation payouts. This is taken directly from the compensation claim amounts awarded. The law caps what can be taken from compensation amounts.

However, when No Win No Fee solicitors fail to secure compensation payouts, claimants are usually not expected to pay for their solicitor’s services.

We hope that this article has explained how compensation payout amounts are determined.  Also, we hope you’d like us to check if your case might be taken on. If that’s the case, you can:

  • Call our team for free legal advice on 0800 408 7825.
  • Use our online form to arrange a call back when it’s convenient.
  • Connect to live chat and speak with an online advisor.

A solicitor explaining how are compensation payout amounts calculated to a client

Read More Claims Guides

This is the final part of our guide about compensation payment amounts. To support you further, we’ve linked to some additional information that might prove useful.

NHS England – This site contains lots of useful health advice and guidance on when to seek treatment.

Whiplash Reforms – Government advice on claiming for whiplash when compensation payout amounts are less than £5,000.

Solicitor Standards – The regulations and standards expected of law firms by the Solicitors Regulation Authority.

Passenger Injury Claims – Advice for passengers who’ve been injured in a car accident.

Cycling Accident Claims – This guide looks at claiming if you’ve been knocked off of your bike.

Council Trips And Slips – Free advice on when you could claim if you fall because of council negligence.

We also have some other guides you may find useful:

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