Recommendation IR2-11: Interest on Past Losses
From Second Interim Report, published 5 April 2023.
Recommendation
I recommend that interest be payable on awards for past financial losses and past provision of care, from the date of infection to the date of the award, in accordance with the practice in personal injury damages claims; alternatively, that such awards are uplifted for inflation during that period.
In brief (written by this site)
The UK Government stated in December 2024 that the compensation scheme "aligns with the spirit of the recommendation regarding interest payable on past financial loss" by applying the current median annual salary plus 5% to all past working years rather than historical rates, meaning interest is not payable (Cabinet Office response, Dec 2024). The record holds no update since the UK Government's response of December 2024 (Cabinet Office response, Dec 2024).
Sources
AI-generated summary of the record on this page, checked by a second model and automatic checks, 26 Sep 2026. The record below is the sources' own words.
Government response
With respect to recommendation 11 of the Second Interim Report, the compensation scheme aligns with the spirit of the recommendation regarding interest payable on past financial loss. The Scheme uses the rate of current median +5% annual salary netted for tax and NI, which is then applied to all years for the working period (age of infection to retirement age) and 50% of this rate from retirement age to life expectancy age. As the Scheme uses the current median salary, as opposed to rates from previous years, interest is not payable.
Delivery
No statement on delivery from UK Government has been found in the sources searched (last checked 11 June 2026). This is separate from the response above.
Responsible bodies
Themes and tags
Who has spoken
- UK Government
Response