Pre-judgment interest on debts and damages
Date: 16 September 2008
'Pre-judgment interest' refers to the interest awarded from the day when payment fell due until judgment is entered or payment made (whichever is earlier).
In its response to the Law Commission's report, the government has agreed to change the current rules on pre-judgment interest so that in future it can be aligned to the Bank of England base rate. However, the government has no plans to take forward the recommendation to allow the courts to award compound (rather than simple) interest.