Regulation 4 Amendments relating to determining the “past amount” and “future amount” of certain awards

after paragraph (1) insert—

“(1A)

In relation to an award mentioned in paragraph (1)(a), (b), (j) or (k)—

(a)

the “past amount” is the greater of—

(i)

the annual past amount;

(ii)

the averaged past amount;

(b)

the “future amount” is—

(i)

where the past amount is the annual past amount, the annual future amount;

(ii)

otherwise, the averaged future amount.

(1B)

In relation to an award mentioned in paragraph (1)(c) to (i)—

(a)

the “past amount” is the averaged past amount;

(b)

the “future amount” is the averaged future amount.”;

in paragraph (2)—

in paragraph (3)—

omit paragraph (4)(b);

after paragraph (4) insert—

“(4A)

For the purposes of calculating the “past amount” and “future amount” of a care (core) award which includes an amount under regulation 21(3)(b)(ia), (4)(b)(ia) or (6)(aa)—

(a)

paragraph (4)(a) is to be read as if at the end there were inserted “, other than any amount under regulation 21(3)(b)(ia)(bb), (4)(b)(ia)(bb) or (6)(aa)(i)”;

(b)

the “averaged past amount” of the award is A + B, where “A” is the amount calculated in accordance with paragraph (2) and “B” is any amount under regulation 21(3)(b)(ia)(bb), (4)(b)(ia)(bb) or (6)(aa)(i).”;

omit paragraph (5);

at the end insert—

“(6)

Subject to paragraphs (7) to (11)—

(a)

the “annual past amount” of an award is C + (D × 0.25), where—

(i)

“C” is the sum of the annual amounts calculated for the purpose of the award for each year in the period beginning with P’s first year of infection and ending with 2024, and

(ii)

“D” is the annual amount calculated for the purpose of the award for 2025;

(b)

the “annual future amount” of an award is E + (D × 0.75), where—

(i)

“E” is the sum of the annual amounts calculated for the purpose of the award for each year in the period beginning with 2026 and ending with the year in which P attained, or is expected to attain, the age of their healthy life expectancy, and

(ii)

“D” is the annual amount calculated for the purpose of the award for 2025.

(7)

In relation to the financial loss (PAYE earnings) award, the “annual amount” is—

(a)

for a year of the reduced earnings period (within the meaning of regulation 37(2)), F - G, where—

(i)

“F” is the annual amount for that year determined in accordance with regulation 37(3), and

(ii)

“G” is the amount of the additional financial loss (core) award for that year;

(b)

for a year of the reduced pension period (within the meaning of regulation 37(2)), H - I, where—

(i)

“H” is the annual amount for that year determined in accordance with regulation 37(4), and

(ii)

“I” is the amount of the additional financial loss (core) award for that year.

(8)

In relation to the additional financial loss (further core) award—

(a)

the “annual past amount” is J - K, where—

(i)

“J” is the sum of the annual past amounts of all current financial loss awards (within the meaning of regulation 43(10)), and

(ii)

“K” is the sum of the annual past amounts of all previous financial loss awards (within the meaning of regulation 43(10));

(b)

the “annual future amount” is L - M, where—

(i)

“L” is the sum of the annual future amounts of all current financial loss awards (within the meaning of regulation 43(10)), and

(ii)

“M” is the sum of the annual future amounts of all previous financial loss awards (within the meaning of regulation 43(10)).

(9)

In relation to the financial loss (self-employment earnings) award—

(a)

the “annual past amount” is N - O, where—

(i)

“N” is the sum of the annual amounts in relation to each tax year of the period beginning with P’s first tax year of infection and ending with the 2024 tax year, determined in accordance with regulation 38(3), and

(ii)

“O” is the annual past amount of the additional financial loss (core) award calculated in accordance with paragraph (6);

(b)

the “annual future amount” is Q - R, where—

(i)

“Q” is the sum of the annual amounts in relation to each tax year of the period beginning with the 2025 tax year and ending with the year in which P attained, or is expected to attain, the age of their healthy life expectancy, and

(ii)

“R” is the annual future amount for the additional financial loss (core) award calculated in accordance with paragraph (6).

(10)

In paragraph (9)(a)(i), “first tax year of infection”, in relation to P, means—

(a)

where P has a single infection—

(i)

the tax year in which P contracted the infection, or

(ii)

if it is not possible to establish the tax year in which the infection was contracted, the earliest tax year in which P could have contracted the infection;

(b)

where P has a co-infection—

(i)

the earliest tax year in which P contracted one or more infections, or

(ii)

if it is not possible to establish the tax year in which the first infection was contracted, the earliest tax year in which P could have contracted one or more infections.

(11)

In relation to the financial loss (severe health condition) award—

(a)

the “annual past amount” is S + U, where—

(i)

“S” is the annual past amount, calculated in accordance with paragraph (6)(a), of such of the award as comes under regulation 32(1)(a), and

(ii)

“U” is the averaged past amount, calculated in accordance with paragraph (2), of such of the award as comes under regulation 32(1)(b);

(b)

the “annual future amount” is V + W, where—

(i)

“V” is the annual future amount, calculated in accordance with paragraph (6)(b), of such of the award as comes under regulation 32(1)(a), and

(ii)

“W” is the averaged future amount, calculated in accordance with paragraph (3), of such of the award as comes under regulation 32(1)(b).”.

omit paragraph (1)(b);

omit paragraph (5).