Analysis shows compensation for victims has not kept pace with inflation since 1996
Victims of violent crime are receiving significantly less financial support in real terms than they did three decades ago, according to new analysis highlighting long-standing concerns about the UK’s compensation framework.
The Association of Personal Injury Lawyers (APIL) has reported that payments under the Criminal Injuries Compensation Scheme (CICS) have not kept pace with inflation since the mid-1990s. The maximum award available under the scheme was set at £500,000 in April 1996 and has remained unchanged since that time.
APIL’s analysis indicates that, if adjusted in line with the Consumer Price Index (CPI), the maximum payment would now exceed £1 million, reaching approximately £1,015,284. This suggests that the real value of compensation for the most seriously injured victims has fallen by more than half over the period.
The cap applies to individuals who have suffered the most severe and life-changing injuries, including brain damage and paralysis. These cases often require long-term care, specialist equipment, and ongoing support, placing significant financial demands on those affected.
Kim Harrison, immediate past president of APIL, said the current level of compensation does not reflect present-day costs. She stated that the scheme has not been adequately reviewed and that its provisions no longer align with the needs of victims.
She also noted that, while compensation caps may be necessary, the failure to adjust them over time has reduced their effectiveness. According to APIL, other forms of government support are routinely reviewed and updated, whereas the CICS has remained largely unchanged.
The organisation has called for a comprehensive review of the scheme, highlighting additional concerns beyond payment levels. These include eligibility criteria, time limits for making claims, and the scheme’s ability to respond to modern forms of crime such as online offences.
The compensation cap was introduced under the Criminal Injuries Compensation Act 1995 and came into force on 1 April 1996. Since then, no inflation-based adjustments have been applied to the maximum award.
APIL argues that the current situation raises broader questions about the effectiveness of the scheme in meeting its intended purpose. It maintains that without reform, the system risks failing those who have suffered the most serious harm as a result of violent crime.
The findings add to ongoing discussions about the adequacy of support available to victims and whether existing frameworks remain fit for purpose in the current economic environment.