Bid to end compensation culture

THE Government has pledged to tackle the UK's "damaging" compensation culture in a dramatic shake-up of health and safety measures.

Lord Young's report Common Sense, Common Safety calls for a series of far-reaching reforms to end "senseless" rules and regulations and tackle the UK's "compensation culture".

David Cameron is backing all the proposals and hopes the report will prove to be a "turning point", with a new system being introduced to replace "unnecessary bureaucracy".

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Key recommendations include simplifying claims procedures for personal injuries, reviewing the way businesses have to report accidents in the workplace and simplifying the risk assessment procedure for low-hazard workplaces such as offices, classrooms and shops.

And the Prime Minister also pledged to curtail the promotional activities of claims and management companies he said had helped fuel the compensation culture. The changes proposed would, he said, "help stop the creep of unnecessary health and safety culture" in the UK.

Lord Young warned there was a "growing fear" among business owners of having to pay out for even the most unreasonable claims.

"Businesses now operate their health and safety policies in a climate of fear. The advent of no-win, no-fee claims and the all-pervasive advertising by claims management companies have significantly added to the belief that there is a nationwide compensation culture," he said.

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"The no-win, no-fee system gives rise to the perception that there is no financial risk to starting litigation. Indeed, some individuals are given financial enticements to make claims by claims management companies who are in turn paid ever-increasing fees by solicitors.

"Ultimately, all these costs are met by insurance companies who then increase premiums."

The proposals were welcomed by business leaders but sparked an angry response from unions.

TUC general secretary Brendan Barber said: "Instead of looking for ways of preventing people being killed and injured, the report uncritically accepts the myths and preconceptions surrounding health and safety, and focuses on dealing with a compensation culture which the Government accepts does not exist.

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"This report is a missed opportunity to improve the UK's workplace safety record and by failing to challenge the myths around health and safety it could actually make things much worse."

Dr Adam Marshall of the British Chambers of Commerce, said Lord Young's recommendations were "sensible" and "long overdue."

John Cridland, deputy director general of the CBI, also gave his support to the reforms.

"Lord Young is right," he said. "We need a can-do, not a can-sue culture. This report rightly criticises the tick-box approach to health and safety for drowning people in red tape."

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Christine Blower, general secretary of the National Union of Teachers, criticised the proposals.

"It will be Lord Young's proposals, not the current health and safety rules, that will discourage school trips. It is just not true to say risk assessments prevent trips taking place. To say that teachers shouldn't consider risks before taking children and young people out on trips just seems absurd."