The Government will not make any reforms to the way whiplash claims are dealt with until the impact of new laws begin to show.
A Transport Select Committee wants to establish whether the Government is correct in describing the UK as the ‘whiplash capital of the world’ and what proportion of claims are exaggerated or fabricated.
The Ministry of Justice has already consulted on increasing the small-claims court threshold from £1,000 to £5,000 and a decision had been expected this spring.
But justice minister Helen Grant announced further evidence is needed before a formal response to the consultation is published.
Ms Grant said: “The Government believes that, prior to taking any final decisions on whiplash reform, it should give due consideration to the views of the transport committee.
“The government also believes that the impact of its recent civil reform programme on the price of motor insurance premiums needs to be assessed. Consumers should be rewarded with the lower litigation
costs being reflected in lower insurance premiums.
“For these reasons the Government has decided to defer publication of its formal response to the consultation until after the committee has reported.”
The select committee will now start taking oral evidence as part of its investigation.
The Chartered Society of Physiotherapy, the head of the bioengineering research group and Nottingham University and a lecturer in anatomy and behaviour at Nottingham’s school of veterinary medicine and science will give evidence.
Louise Ellman MP, chair of the transport committee, said: “There are strong views on all sides of the debate on whiplash claims.
“We will hear oral evidence from different groups on the Government’s proposals for reducing the number and cost of whiplash claims. We will discuss with witnesses the impact these proposals might have on reducing motor insurance premiums and on access to justice for injured people.”