Government proposes increase to small claims bar

Unite, the UK’s largest union, is accusing the government of using a bill due to return to the House of Commons this week, to shield employers who play ‘fast and loose’ with the safety of workers from having to pay compensation to those they injure.

The proposals are covered by the Civil Liability bill which is due to have its second reading in the House of Commons. Although not formally part of the bill, the government has said there will be an increase in the small claims limit.

The small claims limit is currently set at £1,000, which means that very few workplace injury claims are caught by the limit. The government is proposing to increase this to £2,000 and £5,000 for all road traffic cases.

Injuries which are likely to fall below the proposed £2,000 limit include: minor brain damage, psychiatric damage, collapsed lung, food poisoning, broken nose and loss of some teeth.

Injuries which would be excluded by the £5,000 limit set for drivers include: being instantly killed, some forms of post-traumatic stress disorder, minor eye injuries, toxic fumes and smoke inhalation leading to some lung damage, broken wrist and some facial disfigurement.

The increase in the small claims limit would be undertaken through so-called secondary legislation, denying MPs a proper say on a devastating attack on workplace justice.

Unlike in road traffic accidents and the notorious high number of claims for whiplash injuries, which the bill is meant to tackle, there is no culture of fake compensation claims, with regards to workplace injuries.

If the changes are introduced it will become very difficult to hold unsafe employers to account. As a consequence, workers are more likely to consider industrial action to win compensation if workplace injuries occur.

Unite assistant general secretary, Howard Beckett, said: “The government is shielding dangerous bosses from justice. Bad bosses who play fast and loose with workers lives will be able to escape paying compensation on the majority of workplace injuries.

“The proposed changes will save the government’s friends in the insurance industry millions in compensation claims, which is nice work if you can get it, while making workplaces more dangerous.

“Drivers and other road workers are facing a double whammy with their limit being set at £5,000 meaning they could be killed and their loved ones denied any compensation. 

“Trade union personal injury cases are one small measure through which workers who are injured at work as a direct result of bosses’ actions can achieve justice. 

“If workers can’t receive compensation for their injuries, they will also be denied claiming compensation for loss of earnings. Bad bosses will know that even if they injure a worker they won’t have to pay them their wages while they recover.

“Previously in cases such as asbestos diseases it was only the sheer weight of claims for lower levels of damage which finally forced the government to act to ban the substance. 

“Developing areas of serious workplace dangers such as aerotoxic incidents and exposure to diesel fumes, are much less likely to be tackled if workers can’t claim compensation for damage to their health.”