UK not a compensation culture

Task Force welcomes government response to compensation report

News, 10 November 2004

David Arculus, Chairman of the Better Regulation Task Force, has welcomed the publication of the government's response to its report, "Better Routes to Redress".

The report, published earlier this year, dismissed fears that the UK is heading towards a United States-style compensation culture as an 'urban myth'.

Mr Arculus said: "Tabloid tales of people suing one another for vast sums of money for apparently trival reasons have fuelled a commonly-held belief that the UK is heading towards a United States-style compensation culture. In fact, our report found that registered accident claims actually fell last year and most county court awards were for less than £3,000.

"Nevertheless, the very perception of a compensation culture causes its own problems. Fear of litigation holds back drug companies from launching new products, doctors practice defensive medicine, schools cancel field trips and local authorities spend their budgets investigating claims instead of mending roads.

"Such risk-averse behaviour harms the economy and imposes real costs on society. It also stops people saying sorry and delays the all-important process of rehabilitation.

"That is why I am very pleased that the government's response supports our argument that, while there are many people prepared to have a go, there are, in reality, no great wodges of cash to reward trivial claims."

Among other measures, the government will consider how to regulate claims management companies if the sector fails to clean up its own act.