19.8.13

Compensation Culture

The following has been supplied by the TUC:

TUC hits back after new compo attacks
The TUC has criticised a new push by insurers and the government to limit access to compensation. Axa chief Paul Evans told the Daily Telegraph on 4 August that 'compensation culture is becoming a real issue for society', adding: 'We are seeing more claims for stress coming through, and deafness or loss of hearing through noise in the workplace, more claims on employer liability. Again like whiplash these are things that at the time are nearly impossible to prove.' In reality, noise-induced deafness is extremely easy to prove, using a simple diagnostic audiometric test. And a TUC-backed Hazards report last week revealed fewer than 1 in every 750 workers suffering from health problems related to stress at work get a payout. On 31 July, the government introduced a system to channel employers' liability claims worth less than £25,000 through a 'claims portal', a move it says is intended to 'reduce the amount defendants, or their insurers, have to pay in legal fees.' It does this by reducing payments to claimants' lawyers, meaning it will be difficult to get law firms to take on all but the most straightforward claims. Justice minister Helen Grant said: 'We are turning the tide on the compensation culture which has pushed up the cost of insurance for drivers, schools and business - and taking another important step to reducing the cost of living for ordinary people.' Commenting on the clampdown on workplace claims, TUC's Hugh Robertson said: 'There is not one single shred of evidence that there is any kind of compensation culture. The number of claims has fallen by 60 per cent in the past decade and only a small percentage of injured and ill workers even make a claim.' He added: 'The government, at the behest of the insurance industry, is trying to stop workers getting justice by making it even harder to claim with changes to the way costs are worked out and removing employers' liability when they break the law. While workers face reduced protection in the workplace and cuts to their compensation when they do get injured (if they are ever able to claim), the government will continue their 'blame the victim' blitz egged on by their cheerleaders in the insurance industry.'

Government dishonesty over 'compensation culture'
The government is being dishonest about the UK's 'compensation culture' in order to justify cutting basic health and safety protections at work, according to a TUC-backed report. It warns that thousands of workers suffering deadly occupational diseases are being denied payouts as a result of these cutbacks. The report, by the workers' health journal Hazards, shows that far from being a compensation free-for-all, as ministers claim, the number of people actually receiving awards for work-related injuries or diseases has fallen by 60 per cent over the last decade - down from 219,183 in 2000/01 to 87,655 in 2011/12. The report, based on official government figures, shows even the families of those dying from occupational diseases have little chance of securing a payout. For most occupational cancers the chances of getting any compensation is below 1 in 50. While more than 4,000 workers a year die of work-related chronic bronchitis and emphysema, just 59 received compensation in 2011/12. For those suffering from work-related stress, anxiety and depression the chances of getting compensation are even smaller. Of the 221,000 cases in 2011/12, just 293 resulted in a payout. TUC general secretary Frances O'Grady said: 'The government is trying to brainwash people into thinking the UK has a rife compensation culture. However, the facts tell a very different story. Even those dying from work-related diseases have precious little chance of getting a payout.' She added: 'The true government motive here is to weaken health and safety laws and make it harder to for victims to pursue claims. Unfortunately the end result is likely to be a much higher rate of workplace accidents, injuries and illnesses in the future.' Commenting on the findings, Labour MP Jim Sheridan, who chairs the All Party Parliamentary Group on Occupational Health and Safety, said the government 'is simply undermining the important issue of health and safety at work. The government's approach to health and safety encourages bad employers.' A government spokesperson said it was 'ensuring workers get the protections they need by making sure health and safety rules are easier to understand, administer and enforce. The burden of health and safety red tape had become too great.'