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Compensation

Volume 448: debated on Tuesday 4 July 2006

To ask the Minister of State, Department for Constitutional Affairs what assessment she has made of the extent to which a compensation culture exists. (75833)

The Better Regulation Task Force (BRTF) report: “Better Routes to Redress” published in May 2004 found that the “compensation culture” is a myth, because the number of claims and litigation is not in fact rising. But that it is a damaging myth that needs to be tackled, because the widespread belief that claims are rising, leads to a disproportionate fear of litigation and risk averse behaviour.

The Government are therefore taking forward a wide- ranging programme of work, with the core objectives of preventing a compensation culture from developing; tackling perceptions that can lead to a disproportionate fear of litigation and risk averse behaviour; finding ways to discourage and resist bad claims; and improving the system for those with a valid claim for compensation.