Ministry of Justice press release

On 16 September 2008, the government published its response to the Law Commission’s 2004 report on pre-judgment interest on debts and damages. In its response, the government has agreed to change the current rules on pre-judgment interest so that, in future, it can be aligned to the Bank of England base rate. However, the government has rejected the Law Commission’s recommendation that compound interest should be awarded on judgments that exceed £15,000, so that simple interest will continue to be awarded in the vast majority of cases. For more information go to http://www.justice.gov.uk/publications/pre-judgment-interest.htm.