New official figures reveal that motor-related personal injury claims across the UK have fallen to their lowest level on record, continuing a long-term downward trend in claims activity.
Data obtained from the Compensation Recovery Unit, which is administered by the Department for Work and Pensions, shows that motor injury claims dropped sharply in the final quarter of 2025. During this period, claims fell by approximately 24%, marking the lowest quarterly figure since records began.
On an annual basis, total motor injury claims decreased by around 14%, while overall personal injury claims fell by approximately 12%. By comparison, figures from 2018 show that personal injury claims have reduced by more than half, highlighting the scale of the decline over recent years.
Impact of Whiplash Reforms and Fixed Costs
The sustained fall in claims has been widely attributed to legislative and procedural reforms introduced in recent years. These include the Civil Liability Act and the introduction of an online claims portal for lower-value road traffic accident claims, alongside a fixed tariff system for whiplash injuries.
Industry bodies, including the Association of Consumer Support Organisations, have stated that while road safety levels have not significantly improved, the claims process itself has become more complex and restrictive for injured individuals.
As a result, many law firms have reduced or exited personal injury work, leading to a more concentrated market dominated by a smaller number of firms.
Ongoing Government Review
The UK government is currently reviewing the whiplash reform programme, including:
- The statutory definition of whiplash injuries
- Fixed compensation tariffs for injuries lasting up to two years
- Restrictions on settling claims without supporting medical evidence
The review will also consider changes to small claims track limits and the broader impact of extended fixed recoverable costs across civil litigation.
Legal practitioners have raised concerns that uncertainty around cost recovery and case allocation is making it increasingly difficult for injured individuals to obtain clear advice and effective representation.
A Changing Landscape for Personal Injury Claims
The latest data challenges long-standing narratives around a so-called “compensation culture” and instead points to structural barriers within the current claims system. As regulatory reviews continue, further changes to the personal injury landscape may follow in 2026 and beyond.
