Category: Gov Press Releases

Tracey Crouch, Minister for Sport and Civil Society, today unveiled the first Mental Health Action Plan for Elite Sport, which has been developed with mental health and sports organisations to improve awareness and training in top-level sport.

A new mental health strategy will be implemented across all elite sports to promote good mental wellbeing and give athletes and National Governing Bodies better information about accessing sports and clinical psychologists.

By 2024, elite sport must have mental health procedures embedded in their performance plans, and provide clear pathways for athletes to help them access professional mental health support.

National Lottery Funded athletes will also be encouraged to visit mental health units to improve discussions and help break down the stigma around mental health.

Good mental health practise will also be embedded at a grassroots level as part of the plan.

Sport England will ingrain mental wellbeing into its Talent Strategy and teach holistic athlete development, and mental health welfare alongside physical training.

The Action Plan was developed after the Minister hosted two roundtables last year one with elite athletes from across British sport to hear firsthand the pressures they face and the other for sports and mental health organisations to discuss how the sector can improve support, and share best practice.

Tracey Crouch, Minister for Sport and Civil Society, said:

We know that sport has a very positive impact on people’s mental health and can help in their recovery. But when sport is your job, the immense pressure to succeed can become too much.

This Action Plan sets out how Government, sports and mental health organisations can work together to give athletes the right support before they reach crisis point.

Progress has been made to break down the stigma around mental health and this plan underlines our commitment to tackling this important issue in sport. It will help create a stronger industry where our elite sports men and women can continue to thrive and inspire future generations.

Emma Boggis, chief executive of the Sport Recreation Alliance, added:

I am very pleased to have worked together with the Sports Minister and Mind to develop this Action Plan which is committed to making a real change for elite sportspeople.

We know that there is good practice in the sector through our work on the Mental Health Charter for Sport and Recreation and working closely with our wider membership. But we also recognise that this needs to become common practice so that athletes and their support teams feel that their mental wellbeing is a priority.

We believe that by working together we can collectively help to create a positive environment, with greater understanding and knowledge, that helps our athletes and the wider population to engage in sport and physical activity.

The government will now establish a small group to oversee progress in delivering the plan and will report on progress as part of the Sporting Future annual report to Parliament.

ENDS

NOTES TO EDITORS

Read the full Mental Health Action Plan for Elite Sport

Education Secretary Damian Hinds today (20 March) marked World Social Work Day by setting out a series of measures to raise the status of the profession and praising social workers for the difference they make in supporting children and families in their care.

The Department for Education has announced two new appointments to work closely with the social work profession and share best practice across the social care system.

Lord Patel of Bradford, a former social worker, will chair the new dedicated social work regulator, Social Work England, which will set professional, education and training standards for social workers.

Former Children’s Minister Edward Timpson will chair the independent Child Safeguarding Practice Review Panel to consider and share the learnings from the most serious child safeguarding cases.

Education Secretary Damian Hinds said:

The job social workers do couldn’t be more important and yet they are often the unsung heroes of our society.

World Social Work Day is about recognising the real difference they make to children and families who find themselves in some of the most difficult circumstances, providing life-changing care and support.

This Government wants to carry on raising the status of the social work profession which is why we are helping them improve their skills and develop their careers in the interests of the children who need them.

As chair of Social Work England, the new dedicated regulator, Lord Patel of Bradford will bring his experience as a former social worker to make sure the workforce’s views are put at the heart of its development.

The new regulator, jointly set up by the Department for Education and the Department of Health and Social Care, will also make sure all registered child, family and adult social workers have the correct qualifications and meet the standards required for the job and remain fit to practise.

Lord Patel of Bradford, chair of Social Work England, said:

I am honoured and excited to have been appointed as the chair of Social Work England. As a former social worker I am passionate about our profession and truly believe that social workers do and can help to transform lives for the better. However, I know that our profession currently faces unique pressures and challenges.

Supporting and sustaining good social workers requires a strong, confident and effective regulator, so I want Social Work England to not only lead the way in driving up standards, but also to work collaboratively with the profession to ensure that all standards are evidence-based, rooted in real experience and values, and are fit for the 21st Century.

The Child Safeguarding Practice Review Panel, chaired by Edward Timpson, is responsible for overseeing reviews of serious child safeguarding cases which the panel believe include complex or nationally-important issues. It will make sure the findings are shared nationally to inform safeguarding policy and best practice.

Edward Timpson, chair of the Child Safeguarding Practice Review Panel, said:

Nothing is more important than keeping children safe. That’s why I’m delighted to chair the first ever legally-established national panel, working with its members and others to ensure that reviews of serious cases involving children lead to real, meaningful and enduring improvements to child safeguarding practice across the country.

Today the department also announced a number of measures setting out further improvements to children’s social care, including:

• New standards for qualified child and family social workers to follow, set out in the Knowledge and Skills Statements, which clearly define what social workers should know and be able to do. This follows a consultation through a series of roundtable discussions around the country.
• Confirming grants worth £3.5 million for the remaining eight of 21 sites taking part in phases one and two of the National Assessment and Accreditation System for children and family social workers. The scheme aims to establish career paths, helping to develop good managers and leaders of the future.
• Setting up a board for the What Works Centre for Children’s Social Care, announced in December, and the testing of innovative approaches to the development, sharing and adoption of evidence with a small number of pioneer councils.
• Encouraging local areas to apply for a role as ‘early adopters’ of the new, stronger safeguarding arrangements, which place equal responsibility for keeping children safe on councils, police and health workers.

Isabelle Trowler, Chief Social Worker for Children and Families, said:

Today, on World Social Work Day, we celebrate our vital public service contribution as we continue to build a stronger, more intelligent and responsive practice system across England. Announcements today that Lord Patel of Bradford and Edward Timpson will respectively lead Social Work England the national Child Safeguarding Practice Review Panel is indicative of the continuous progress we are making. I am delighted they are joining us in this inspiring journey.

These new institutions, alongside the expansion of Partners in Practice, the launch of the What Works Centre and the introduction of post qualification accreditation all demonstrate that Government is investing in social work.

A Downing Street spokesperson said:

This morning the Prime Minister spoke to Prime Minister Abe of Japan.

The Prime Minister updated Prime Minister Abe on the investigation into the attack on Sergei Skripal and his daughter and the reckless endangerment of the British public through the use of a military grade nerve agent developed by Russia.

The Prime Minister noted that the incident was a grave violation of international law and also state sovereignty.

Prime Minister Abe condemned the incident, and said Japan shared our strong conviction that the use of chemical weapons should never be tolerated. He expressed heartfelt sympathy for the victims, and said Japan shared our outrage.

They agreed that those responsible must be brought to justice and that Russia must respond in a serious manner, including by cooperating fully with the Organisation for the Prohibition of Chemical Weapons (OPCW) investigation.

Following extensive engagement with businesses across the country, Baroness Fairhead, Minister of State for Trade and Export Promotion, today issued a final call for businesses to come forward and input into the government’s forthcoming Export Strategy.

Publishing the Terms of Reference today, the Baroness emphasised the importance of business driving the content of the Strategy, with the Department for International Trade estimating that more than 300,000 UK companies produce products that could be exported but currently have no overseas sales. Ministers have already conducted a series of roundtables with businesses of all sizes and across a number of sectors. These have been convened in conjunction with a number of key stakeholders, including the Federation of Small Business and the British Chambers of Commerce, to understand the barriers preventing companies from exporting.

The minister also set out that the Export Strategy will build on the recent Industrial Strategy, as well as complementing future British trade policy, by helping firms to increase their capacity to export their goods and services overseas.

Businesses are being asked to reflect on the challenges they face that currently prevent them from exporting to foreign markets. They will also be asked about the specific needs of their sectors, as well as the current offer of support available to them.

Baroness Fairhead, Minister of State for Trade and Export Promotion, said:

Export support is a key way that the government can help businesses succeed and grow. The aim of the Export Strategy is to provide assistance which is effective, high quality and timely, allowing companies to achieve sustainable growth on the world stage.

Building on the foundations laid by the Industrial Strategy and our future trade policy, I am confident that with the vital contribution of British businesses – we can help take UK exports to the next level.

The latest figures from the Office of National Statistics show that demand for British goods and services rose to the end of January 2018. UK exports rose grew 11.5% (£64.5 billion) in the month window to £625.9 billion, with the overall trade deficit narrowing by £12.8 billion in the process.

The minister is today travelling to Hong Kong for the GREAT Festival of Innovation which is showcasing the best of British creativity to potential partners and investors from around the world.

From this week, British businesses of all sizes will also be able to showcase their products in front of millions of potential new customers as a new campaign launches between the Department for International Trade and some of Asia’s top e-commerce platforms and mobile shopping apps.

Over 160 British brands will have their goods promoted across 3 China and Hong Kong based e-tailers – ttHigo, Goxip and MyMM.

The Export Strategy is expected to report in the coming months. The Terms of Reference are included in today’s announcement.

Further information

Businesses are being asked to submit answers to the following questions:

1. how should government differentiate its support for different sizes of firm?
2. how should government prioritise its support across different business sectors and overseas markets?
3. how should government change its mix of products and services to help businesses achieve a sustained increase in exports?
4. how should government work with regional and private sector export support to deliver a more joined-up offer for businesses?
5. what should government do to increase capacity and capability in the private sector, particularly at a UK regional level?
6. how should government charge for the services it offers?
7. do you have any other comments that you would like DIT to take into account?

Evidence will be taken until 18 April 2018 and should be submitted to: DITExportStrategy@trade.gov.uk

About the E-Exporting Programme

DIT’s E-Exporting Programme helps UK companies to accelerate their global growth through e-commerce. The programme provides access to the Selling Online Overseas Tool on great.gov.uk, a free-to-use, online service that allows businesses to click, connect, prepare and sell on global marketplaces such as Amazon, eBay and ttHigo. The tool provides access to discounts and benefits, including reduced commissions and special marketing packages.

About the GREAT Festival of Innovation

The Great Festival of Innovation Hong Kong will be the third of its kind, following successful events in Istanbul (2014) and Shanghai (2015). Its vision is to create long-term partnerships that drive the future of free trade and prosperity between the UK and Asia. Several hundred invited delegates will attend the Hong Kong event, which takes place at the Asia Society Hong Kong Centre and will feature more than 60 panels and events over its 4 days.

For more information, please visit great.gov.uk/innovation or follow the hashtag #GREATinnovation.

Hundreds of disabled employees are to benefit from a £15,000 rise in Access to Work grants to assist them at work, following new measures introduced in Parliament today (20 March 2018).

From April 2018, people will be able to claim up to £57,200 annually to help pay for additional support that they may need in the workplace – approximately £15,000 more than the current cap of £42,100.

Access to Work provides financial support to ensure someone’s disability or health condition doesn’t hold them back at work, and can cover workplace adaptations, assistive technology, transport and interpreters.

Increasing the amount people can receive annually will ensure that more disabled people, particularly from the deaf community, are able to benefit from the grant and achieve their career aspirations.

The Secretary of State for Work and Pensions, Esther McVey, said:

We believe that disabled people should have every opportunity to thrive in the workplace, and the tailored support of Access to Work caters to every individual’s unique needs.

By extending this grant we’re ensuring that many more disabled people can reach their career potential, which is a key part of our commitment to getting one million more disabled people in work by 2027.

The UK Council on Deafness said:

We are pleased to see that the Department for Work and Pensions has decided to significantly raise the Access to Work cap.

This will help deaf people whose first language is British Sign Language (BSL) to access the communication support so vital to enabling them to thrive and succeed in the workplace.

Access to Work is part of a range of support available to ensure that disabled people can enter, and thrive in, the workplace. This includes supported work experience placements, the government’s Disability Confident scheme and personalised support package. These are all part of the government’s ambitious plan to see a million more disabled people in work by 2027.

More information

The new cap will take effect from 1 April 2018.

As we continually seek to improve Access to Work, we will introduce the following measures:

• discretion in exceptional cases of multiple disability, to consider award limits averaged over a longer period – for example, where a customer’s ongoing need for a support worker may be below the cap but when coupled with a periodic need for say a wheelchair, would exceed the cap in that year
• introduction of managed personal budgets to enable greater choice and control for customers in the way grants are spent
• taking applications 12 weeks ahead of a job start date rather than the current 6 weeks to allow more time for support to be agreed and put in place
• continuing to invest in our digital improvements such as developing the facility to submit invoices online
• allowing more flexibility in how people can use Access to Work to support short periods of work experience where there is a likelihood of a paid job in the near future

Contact Press Office

Follow DWP on:

• Twitter – www.twitter.com/dwppressoffice
• Facebook – www.facebook.com/dwp
• LinkedIn – www.linkedin.com/company/dwp
• YouTube – www.youtube.com/dwp

This is ahead of the fast-approaching annual cyclone and monsoon season which has the potential to cause significant devastation and loss of life.

Almost a million persecuted Rohingya people, who have fled neighbouring Burma, live in the fragile and cramped camps.

The UN estimates 102,000 of them are living in areas at risk of flooding and 12,000 people are at risk from landslides.

Alongside international aid organisations International Organisation for Migration and UNHCR (United Nations High Commissioner for Refugees), the UK has helped to ensure more than 158,000 people have received reinforced shelter and sandbags to protect them from winds and flood water.

Work has also begun on the reinforcement of pathways through camps needed to deliver supplies and services.

Plans to cope with the aftermath of flooding and landslides are also being stepped up.

Water-borne diseases are common in the aftermath of a flood, and UK aid is ensuring that more than 250,000 people will continue to have access to safe drinking water throughout the rainy season.

More than 5,000 new latrines have been constructed and have been strategically placed throughout the camps and plans to move more than 6,700 latrines to safe grounds have already begun.

UK-supported cholera, measles and diphtheria vaccination campaigns have also taken place in readiness for the monsoons.

These will provide protection against some of the most common diseases in the camps, which can be more widespread during the rainy season.

So far, 391,000 children under the age of seven have been vaccinated, with a further 400,000 children due to receive the vaccinations planned by the end of March.

Healthcare workers are also being trained to prevent, identify and treat common illnesses likely during the rainy season and to manage higher caseloads.

International Development Secretary Penny Mordaunt said:

With the cyclone and monsoon season in Bangladesh imminent it is time to firmly focus our efforts on Cox’s Bazar where nearly a million persecuted and displaced Rohingya people now live.

The Rohingya people have suffered so much already and now they are living in constant fear of the imminent floods causing utter devastation and destruction.

Our swift response can save lives. Right now UK aid is strengthening roads and pathways to ensure vital medication and food can reach the very centre of the camps. UK aid is also reinforcing shelters to protect vulnerable families at risk of flood water and landslides.

England

The data for England shows:

• house prices have fallen by 0.5% since December 2017
• an annual price rise of 4.6% takes the average property value to £242,286

The regional data for England indicates that:

• the South West experienced the greatest monthly price rise, up by 1.4%
• the North East saw the most significant monthly price fall, down by 5.5% and
• London experienced a monthly price rise, up by 1%

Price change by region for England

Region	Average price January 2018	Monthly change % since December 2017
East Midlands	£185,568	-0.1
East of England	£289,729	-0.7
London	£485,830	1.0
North East	£122,870	-5.5
North West	£155,788	-1.5
South East	£323,435	0.2
South West	£255,307	1.4
West Midlands	£187,905	-2.0
Yorkshire and the Humber	£156,484	-0.7

Repossession sales by volume for England

The lowest number of repossession sales in November 2017 was in the East of England.

The highest number of repossession sales in November 2017 was in the North West.

Repossession sales	November 2017
East Midlands	64
East of England	18
London	36
North East	85
North West	162
South East	56
South West	35
West Midlands	62
Yorkshire and the Humber	115
England	633

Average price by property type for England

Property type	January 2018	January 2017	Difference %
Detached	£365,697	£349,733	4.6
Semi-detached	£225,674	£213,611	5.6
Terraced	£194,167	£185,996	4.4
Flat/maisonette	£228,099	£220,139	3.6
All	£242,286	£231,593	4.6

Funding and buyer status for England

Transaction type	Average price January 2018	Annual price change % since January 2017	Monthly price change % since December 2017
Cash	£227,783	4.6	-0.5
Mortgage	£249,593	4.6	-0.5
First-time buyer	£203,152	4.4	-0.7
Former owner occupier	£275,127	4.8	-0.3

Building status for England

Building status*	Average price November 2017	Annual price change % since November 2016	Monthly price change % since October 2017
New build	£320,489	13.5	3.6
Existing resold property	£237,791	4.5	-0.2

*Figures for the two most recent months are not being published because there are not enough new build transactions to give a meaningful result.

Sales volumes for England

The most up-to-date HM Land Registry sales figures available for England show that the number of completed house sales in November 2017 fell by 13% to 64,454 compared with 74,097 in November 2016

Month	Sales 2017	Sales 2016	Difference %
October	69,133	70,825	-2.4
November	64,454	74,097	-13.0

London

The data for London shows:

• house prices have risen by 1% since December 2017
• an annual price rise of 2.1% takes the average property value to £485,830

Average price by property type for London

Property type	January 2018	January 2017	Difference %
Detached	£887,700	£893,279	-0.6
Semi-detached	£578,716	£568,911	1.7
Terraced	£499,645	£487,710	2.4
Flat/maisonette	£431,756	£421,834	2.4
All	£485,830	£475,619	2.1

Funding and buyer status for London

Transaction type	Average price January 2018	Annual price change % since January 2017	Monthly price change % since December 2017
Cash	£514,490	2.5	1.8
Mortgage	£477,088	2.1	0.8
First-time buyer	£425,253	2.1	1.1
Former owner occupier	£547,733	2.2	0.9

Building status for London

Building status*	Average price November 2017	Annual price change % since November 2016	Monthly price change % since October 2017
New build	£523,481	9.2	1.3
Existing resold property	£474,681	1.0	-1.1

*Figures for the two most recent months are not being published because there are not enough new build transactions to give a meaningful result.

Sales volumes for London

The most up-to-date HM Land Registry sales figures available for London show that the number of completed house sales in November 2017 fell by 24.6% to 6,165 compared with 8,178 in November 2016

Month	Sales 2017	Sales 2016	Difference %
October	7,054	8,100	-12.9
November	6,165	8,178	-24.6

Wales

The data for Wales shows:

• house prices have fallen by 0.5% since December 2017
• an annual price rise of 4.5% takes the average property value to £153,034

Average price by property type for Wales

Property type	January 2018	January 2017	Difference %
Detached	£232,526	£221,555	5.0
Semi-detached	£148,715	£140,503	5.8
Terraced	£116,573	£113,087	3.1
Flat/maisonette	£110,479	£105,921	4.3
All	£153,034	£146,395	4.5

Funding and buyer status for Wales

Transaction type	Average price January 2018	Annual price change % since January 2017	Monthly price change % since December 2017
Cash	£148,756	4.3	-0.7
Mortgage	£155,572	4.6	-0.3
First-time buyer	£131,595	4.0	-0.9
Former owner occupier	£178,201	5.1	0.0

Building status for Wales

Building status	Average price November 2017	Annual price change % since November 2016	Monthly price change % since October 2017
New build	£216,604	14.4	3.3
Existing resold property	£149,835	4.3	-0.9

*Figures for the two most recent months are not being published because there are not enough new build transactions to give a meaningful result.

Sales volumes for Wales

The most up-to-date HM Land Registry sales figures available for Wales show:

• the number of completed house sales in November 2017 fell by 5.2% to 3,871 compared with 4,084 in November 2016; and
• there were 66 repossession sales in November 2017

Month	Sales 2017	Sales 2016	Difference %
October	4,103	3,957	3.7
November	3,871	4,084	-5.2

Access the full UK HPI.

UK house prices grew by 4.9% in the year to January 2018, down from 5.0% in the year to December 2017.

The UK Property Transaction Statistics for January 2018 showed that on a seasonally adjusted basis, the number of transactions on residential properties with a value of £40,000 or greater has fallen by 0.1% in the year to January 2018. Between December 2017 and January 2018, transactions increased by 1.3%.

Looking at the country and regional level, the largest annual price growth was recorded in Scotland and the East Midlands at 7.3%. The lowest annual growth was in the North East, where prices increased by 0.7% over the year, followed by London at 2.1%. This is the 14th consecutive month where the annual growth in London has remained below the UK average.

See the economic statement.

Notes to editors

1. The UK House Price Index (HPI) is published on the second or third Tuesday of each month with Northern Ireland figures updated quarterly. The February 2018 UK HPI will be published at 9.30am on 18 April 2018. See calendar of release dates.
2. As from April 2018, this release will be published on Wednesdays.
3. We have made some changes to improve the accuracy of the UK HPI. We are not publishing average price and percentage change for new builds and existing resold property as done previously because there are not currently enough new build transactions to provide a reliable result. This means that in this month’s UK HPI reports, new builds and existing resold property are reported in line with the sales volumes currently available.
4. The UK HPI revision period has been extended to 13 months, following a review of the revision policy (see calculating the UK HPI section 4.4. This ensures the data used is more comprehensive.
5. Sales volume data is also available by property status (new build and existing property) and funding status (cash and mortgage) in our downloadable data tables. Transactions involving the creation of a new register, such as new builds, are more complex and require more time to process. Read revisions to the UK HPI data.
6. Revision tables have been introduced for England and Wales within the downloadable data. Tables will be available in csv format. See about the UK HPI for more information.
7. Data for the UK HPI is provided by HM Land Registry, Registers of Scotland, Land & Property Services/Northern Ireland Statistics and Research Agency and the Valuation Office Agency.
8. The UK HPI is calculated by the Office for National Statistics (ONS) andLand & Property Services/Northern Ireland Statistics and Research Agency. It applies a hedonic regression model that uses the various sources of data on property price, in particular HM Land Registry’s Price Paid Dataset, and attributes to produce estimates of the change in house prices each month. Find out more about the methodology used from the ONS and Northern Ireland Statistics & Research Agency.
9. The UK Property Transaction statistics are taken from HM Revenue and Customs (HMRC) monthly estimates of the number of residential and non-residential property transactions in the UK and its constituent countries. The number of property transactions in the UK is highly seasonal, with more activity in the summer months and less in the winter. This regular annual pattern can sometimes mask the underlying movements and trends in the data series so HMRC also presents the UK aggregate transaction figures on a seasonally adjusted basis. Adjustments are made for both the time of year and the construction of the calendar, including corrections for the position of Easter and the number of trading days in a particular month.
10. UK HPI seasonally adjusted series are calculated at regional and national levels only. See data tables.
11. The first estimate for new build average price (April 2016 report) was based on a small sample which can cause volatility. A three-month moving average has been applied to the latest estimate to remove some of this volatility.
12. Work has been taking place since 2014 to develop a single, official HPI that reflects the final transaction price for sales of residential property in the UK. Using the geometric mean, it covers purchases at market value for owner-occupation and buy-to-let, excluding those purchases not at market value (such as re-mortgages), where the ‘price’ represents a valuation.
13. Information on residential property transactions for England and Wales, collected as part of the official registration process, is provided by HM Land Registry for properties that are sold for full market value.
14. The HM Land Registry dataset contains the sale price of the property, the date when the sale was completed, full address details, the type of property (detached, semi-detached, terraced or flat), if it is a newly built property or an established residential building and a variable to indicate if the property has been purchased as a financed transaction (using a mortgage) or as a non-financed transaction (cash purchase).
15. Repossession sales data is based on the number of transactions lodged with HM Land Registry by lenders exercising their power of sale.
16. For England, this is shown as volumes of repossession sales recorded by Government Office Region. For Wales, there is a headline figure for the number of repossession sales recorded in Wales.
17. The data can be downloaded as a .csv file. Repossession sales data prior to April 2016 is not available. Find out more information about repossession sales.
18. Background tables of the raw and cleansed aggregated data, in Excel and CSV formats, are also published monthly although Northern Ireland is on a quarterly basis. They are available for free use and re-use under the Open Government Licence.
19. HM Land Registry’s mission is to guarantee and protect property rights in England and Wales.
20. HM Land Registry is a government department created in 1862. It operates as an executive agency and a trading fund and its running costs are covered by the fees paid by the users of its services. Its ambition is to become the world’s leading land registry for speed, simplicity and an open approach to data.
21. HM Land Registry safeguards land and property ownership worth in excess of £4 trillion, including around £1 trillion of mortgages. The Land Register contains more than 25 million titles showing evidence of ownership for some 85% of the land mass of England and Wales.
22. For further information about HM Land Registry visit www.gov.uk/land-registry
23. Follow us on Twitter @HMLandRegistry, our blog, LinkedIn and Facebook

Contact

• Clampdown on whiplash claims to save motorists about £35 per year
• The whiplash changes are part of government’s wider programme to tackle the compensation culture which is driving up costs to consumers and taxpayers
• Bill includes changes to the way the personal injury discount rate is calculated to bring certainty and transparency to the system, and savings for the NHS

The legislation sets in law measures which will reduce the unacceptably high number of whiplash claims and allow insurers to cut premiums, with motorists anticipated to save on average about £35 per year.

The whiplash measures form a major plank of the Government’s wider work to tackle the country’s compensation culture, ensuring a more balanced and fair system for all concerned. They follow earlier reforms including the forthcoming ban on cold calling, tougher regulation of claims management companies, and a clampdown on spiralling holiday sickness claims.

The high number of whiplash claims has contributed to increased insurance premiums but these measures will mean about £1 billion in savings which insurers have pledged to pass on to drivers.

Justice Secretary David Gauke said:

The number of whiplash claims has been too high for too long, and is symptomatic of a wider compensation culture.

We are putting this right through this important legislation, ensuring whiplash claims are no longer an easy payday and that money can be put back in the pockets of millions of law-abiding motorists.

Road traffic accident related personal injury claims are 50% higher than a decade ago, despite the fall in the number of reported accidents and the UK having some of the safest roads in Europe.

This rise has been fuelled by predatory parts of the claims industry that encourage minor, exaggerated and fraudulent claims, driving up the costs of insurance premiums for ordinary motorists.

The whiplash measures are aimed at cracking down on these claims. The measures will ensure fairness to both motorists and claimants by:

• setting fixed amounts of compensation for whiplash claims; and
• banning the practice of seeking or offering to settle whiplash claims without medical evidence

Also contained in the Bill are changes to the way the personal injury discount rate for serious injuries is calculated.

The changes, first mooted in September, will provide a more balanced approach to compensation that fully compensates victims of catastrophic accidents, including the most vulnerable, while addressing issues around overpayment which could have a knock-on effect on public services with large personal injury liabilities – particularly the NHS.

The discount rate is the percentage used to adjust compensation awards for victims of serious personal injury, according to the amount they could expect to earn by investing it. Its application is an important part of the calculation of awards. It only relates to compensation for future loss.

The adjusted awards should put claimants in the same financial position they would have been in had they not been injured – they should receive neither more nor less than full compensation.

In February last year the discount rate was reviewed as required by the law and reduced from 2.5% to minus 0.75%. This dramatically increased the size of awards of damages to individuals.

At the time, the government acknowledged that this move was likely to have a significant impact, launching a consultation on the way the discount rate is calculated in March, followed by the publication of draft legislation in September.

We have also carefully considered the report of the Justice Committee on the draft legislation and accepted the majority of its recommendations.

The changes to the discount rate now being introduced through the Civil Liability Bill will create a fairer and better system of setting the discount rate, which will still provide full compensation. To ensure this happens we will:

• set the rate with reference to ‘low risk’ rather than ‘very low risk’ investments as at present, better reflecting evidence of the actual investment habits of claimants;
• establish a regular review of the rate, the first within 90 days of the legislation coming into force and at least every three years thereafter;
• establish an independent expert panel Chaired by the Government Actuary to advise the Lord Chancellor on the setting of the rate.

Notes to editors

The Government’s commitment to tackle the whiplash epidemic has previously been welcomed by the Association of British Insurers (ABI), with leading insurance firms including Aviva and LV= pledging to pass 100% of savings onto motorists.

In February 2017 the discount rate was reduced from 2.5% to minus 0.75%, which has led to larger awards and concerns in some quarters that the current law provides more compensation than needed to claimants. The consultation, launched in March, sought to address those concerns by collecting views on how to make the system better and fairer.

It is a well-established principle of law that individuals should receive full compensation for losses suffered as a result of personal injuries that are not their fault. The personal injury discount rate is a percentage used to adjust the lump sum awards for future losses, costs and expenses received by victims of life-changing injuries to account for the amount victims can expect to earn by investing their awards. The discount rate applied to the compensation for future financial loss (such as loss of future earnings and care costs) should ensure that people receive the full compensation that they were awarded – no more or less – by taking into account what they are likely to earn on that money before they are expected to have spent it.

The current framework for setting the discount rate uses real yields from Index Linked Gilts as a proxy for the returns that can be expected from a very low risk investment strategy. However, drawing on expertise from financial advisers, the Government has found strong evidence that in practice claimants are advised to and invest in low risk diversified portfolios.

At the time the discount rate was lowered, a number of pledges were made, including a consultation to consider whether there is a better and fairer way of setting the rate in future. That framework is contained in the legislation published today.

The government today (Tuesday 20 March) will launch a consultation to improve the UK’s corporate governance framework and ensure the highest standards of behaviour in those who lead and control companies in, or approaching, insolvency.

The vast majority of UK companies are run fairly and responsibly, but a small number of recent corporate governance failures have raised concerns that company directors can unfairly shield themselves from the effects of insolvency and – in the worst cases – profit from business failures while workers and small suppliers lose out.

Following last year’s corporate governance reforms to increase boardroom accountability and transparency of big business, the government will today raise standards even further by setting out proposals to crack down on directors and employers behaving irresponsibly. These include:

• clawing back money for creditors including workers and small suppliers by reversing inappropriate asset stripping of companies on the verge of insolvency
• disqualifying and or holding directors personally liable when found to have sold a struggling company or subsidiary recklessly or knowing it would fail
• giving the Insolvency Service new powers to investigate directors of dissolved companies
• consideration of the legal and technical framework within which decisions are made on payment of dividends, and how it could be improved and made more transparent
• strengthening the role and responsibilities of shareholders in stewarding the companies in which they have investments.

These reforms seek to respond in a balanced and proportionate way to help reinforce public trust and confidence in businesses and further strengthen the UK’s business environment which is a key part of the UK’s Industrial Strategy, the government’s long-term plan to build a Britain fit for the future. They will also help to ensure the UK remains one of the best places to start and grow a business and is an attractive place to invest.

Business Secretary Greg Clark said:

Britain has a good reputation internationally for being a dependable place to do business, based on required high standards. This framework has been regularly upgraded and in the light of some recent corporate failures I believe the lessons should be learned and applied.

These reforms will give the regulatory authorities much stronger powers to come down hard on abuse and to make irresponsible directors bear the consequences of their actions.

The government will publish the Insolvency and Corporate Governance consultation later today setting out some of these proposals in more detail. It will also seek views on new ways to protect payments to smaller firms in a supply chain which can be hit hardest when large companies become insolvent.

The government is already taking action on this issue by:

• considering whether further action is needed to prevent the misuse of contract clauses, typically in the construction sector, allowing large firms to withhold payments as a surety against defects
• committing to launch a call for evidence on how to eliminate unfair payment practices to small businesses.

This package of reforms follows last year’s corporate governance reforms which sought to increase boardroom accountability.

The government has already:

• supported the Investment Association’s world-first public register of FTSE-listed companies where more than one fifth of shareholders have opposed resolutions on executive pay packages and other issues
• appointed James Wates to chair a new group drawing up the UK’s first-ever set of corporate governance principles for large private companies
• ensuring that employee and other stakeholder voices are heard and taken into account in boardroom decision-making

In the coming months the government will introduce new laws requiring:

• listed companies to reveal the pay ratio between bosses and employees
• all companies of a significant size to publicly explain how their directors take employees’ and other stakeholders’ interests into account
• all companies of a significant size to make their corporate governance arrangements public

Notes to editors

1. Whenever a corporate insolvency occurs the conduct of the directors of the company is considered. Directors can be disqualified for up to 15 years if their conduct is found to make them unfit to be involved in the management of a company.
2. Insolvency Service is a government agency, helping to deliver economic confidence by supporting those in financial distress, tackling financial wrongdoing and maximising returns to creditors.
3. The Insolvency Service disqualifies around 1,200 irresponsible directors a year, protecting creditors from an estimated total £137 million in losses.