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Last Updated: Friday, 27 January 2006, 15:05 GMT

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Compensation Bill

AIM

This bill will tackle the problems associated with the perception of a 'compensation culture' to ensure that invalid claims are discouraged and resisted.

MAIN PROVISIONS

TIMETABLE

Responsible department: Dept for Constitutional Affairs

Origin: House of Lords

Introduced: 2 Nov 2005

Second reading: 28 Nov 2005

Committee stage: 15 & 20 Dec 2005, 16, 23 & 25 Jan 2006

Report stage: 7 March 2006

Third reading: 27 March 2006

Consideration of Commons amendments: 19 July 2006

COMMONS:

First reading: 27 March 2006

Second reading: 8 June 2006

Committee stage: 20, 22, 27 & 29 June 2006

Report stage: 17 July 2006

ROYAL ASSENT: 25 July 2006

Proposals are likely to include:

Strict regulation of companies which encourage accident victims to make claims

Clarification of the existing common law on negligence

BACKGROUND

The recent increase in litigation arose partly from the introduction of "no win, no fee" deals with lawyers in the late 1990s, and the birth of claims-management firms.

Before the election, the Government established an Action Group within the Department for Constitutional Affairs, comprising around thirty public, private and Government bodies. Their task was to resolve the compensation culture, but also to make improvements to the system for the genuine claimant.