The advantages of periodical payments

16 April 2019

How you receive any compensation settlement does, in part, depend on the type of claim made. In some cases, the court can make an order that means the damages will be paid in the form of regular annual payments, known as PPOs (Periodical Payment Orders). The consent of the two parties is usually sought, but this is not essential and the court may decide that such a payment scheme is in the claimant’s best interests.

Periodical payments are normally made only in higher value claims, such as brain or spinal cord injury, where finance is required to cover care costs and other expenses for the rest of an injured person’s life.

There are several advantages to receiving any settlement in the form of periodical payments rather than a lump sum. Periodical payments are not taxable, whereas an invested lump sum would be. However, the main benefit of periodical payments is that the injured person and their family do not have the worry of investing and managing a lump sum to make sure it lasts.

There is therefore no need to fear that the money might run out as periodical payments are designed to fund whatever support is needed for life. The injured person has a predictable and regular ‘income’, which will usually increase in line with inflation and as care needs expand, upon which they can rely for the rest of their life.

You can find more information in this guide to periodical payments on our website.

Our specialist solicitors have a wealth of experience in catastrophic and complex serious injury cases such as brain and spinal cord injury compensation claims. We can ensure that you receive the necessary expert advice in handling your claim so that you receive the maximum amount of compensation in the most appropriate form, whether that be a lump sum or periodical payments.



This information is for educational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. © Shoosmiths LLP 2024

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