By Marlon Wilkinson. Last Updated 2nd November 2022. You may know that if you’re injured in an accident caused by somebody else, you could be entitled to claim compensation. Not only could you claim for your injuries, but you could also ask for compensation for any financial losses caused by the accident. A common problem following a serious accident is that the injured party loses some or all of their income because they need to take time off work to recover. Therefore, in this guide, we are going to look at when you could claim loss of earnings compensation. In addition, we’ll look at other losses linked to your income too.
In this guide, we’ll provide some example figures to show what compensation could be paid for a range of injuries. As you are only allowed to make one claim, it’s important to strengthen your case as much as possible, so we will show you what evidence you’ll need to prove loss of earnings.
Advice.co.uk are happy to support anybody who is thinking of starting a claim. Our team of specialists provide a no-obligation telephone consultation to review your claim. During the call, they will listen to what happened, consider any evidence and supply free legal advice on your options. If the case appears to feasible, you could be partnered with a personal injury lawyer from our panel. Importantly, all cases taken on are managed on a No Win No Fee basis.
We can start the ball rolling if you call our team on 0161 696 9685 today. Alternatively, for more information on starting a loss of earnings compensation claim, please carry on reading.
Select A Section
- A Guide To Loss Of Earnings Compensation Claims
- Calculating Compensation For Loss Of Earnings
- Do Loss Of Earnings Count As Special Damages?
- What Is Loss Of Earnings Compensation?
- Loss Of Earnings Claim – What Evidence Do I Need?
- Could I Claim For Future Lost Earnings?
- Compensation For Loss Of Overtime And Other Benefits
- Compensation For Loss Of Pension Contributions
- Could I Claim For Lost Self-Employed Earnings?
- No Win No Fee Loss Of Earnings Compensation
- Contact Us
- More Information
If being off work results in reduced income, you may struggle to manage day-to-day. You might struggle to pay important bills, buy groceries, or pay for your family’s usual activities. If the fact that you were off work was because somebody caused you to be injured, then it seems only right that you should seek compensation from them.
Loss of earnings compensation could be possible in any personal injury or medical negligence claim. It could result from a road traffic accident, a fall at work, or a botched operation. Essentially, you could claim if your injuries mean you can’t work while you recover or if you lose income because you need time off for medical appointments.
As we progress, we’ll look at how loss of earnings is calculated. We’ll also look at when you might claim for future lost income too. In addition, we’ll consider whether you could claim other losses like pension contributions, overtime, benefits and sick pay as well. Finally, we will check if self-employed workers could claim loss of earnings as part of a personal injury claim.
If you are going to start a claim, we should inform you of the time limit. In most claims, you’ll have 3 years from the date of the accident. However, in certain circumstances, your 3-year limitation period might begin from the date of knowledge that negligence caused your injuries.
We know that nobody wants to risk losing money when taking on legal representation. That’s why our panel of personal injury lawyers work on a No Win No Fee basis. We’ll explain this service later in the guide.
Calculating Compensation For Loss Of Earnings
Before we start looking at loss of earnings compensation, we thought it would be a good idea to look at general damages. This is the compensation used to cover any pain, suffering and loss of amenity caused by your injuries.
It is important to mention that every claim is unique. Therefore, even though we have supplied example figures, we’ll only be able to estimate your compensation amount once your case has been reviewed.
We have used figures from the Judicial College Guidelines (JCG) to populate the compensation table below. Legal professionals use the JCG to help set the compensation amount. Importantly, we should say that personal injury claims can cover both physical and psychological injuries.
|Type of Injury
|Severity of Injury
|For the most severe cases that involve damage to the spinal cord and nerve roots.
|£91,090 to £160,980
|Where people recover from their injuries (such as sprains and strains) without surgery within about two to five years.
|£7,890 to £12,510
|For serious injuries which lead to considerably severe disabilities, though there is still some mobility of the neck.
|Where people recover from their injuries (such as soft tissue) within one to two years.
|For cases where the injured person has difficulty coping with life and the prognosis is very poor.
|£54,830 to £115,730
|For cases where the person may have suffered problems such as above but the outlook for recovery is more positive
|£5,860 to £19,070
|Cosmetic and functional damage to both hands
|£55,820 to £84,570
|Dislocated shoulder that could cause pain to the neck and affect a person’s arm and hand
|£12,770 to £19,200
|Frozen shoulder with limited movement and discomfort
|£7,890 to £12,770
In all claims, you need evidence to prove your injuries were caused by the accident. Therefore, you would need to have a medical assessment as part of your claim. When working with a specialist lawyer from our panel, they book you in for an appointment.
Your assessment would be conducted by an independent medical expert. During the meeting, they would discuss how you’ve been affected by your injuries. They would also examine you and might refer to your medical records.
After your appointment finishes, they report their findings back to your lawyer. They would then use this report to help them value your injuries. Please call today if you’d like to know more about what could be included in your claim.
Do Loss Of Earnings Count As Special Damages?
Special damages is the term used when claiming compensation for costs and financial losses caused by your injuries. They are not designed as a fine or punishment for the defendant. The idea is to get you back to the same financial state you were in before the accident happened.
Loss of earnings and future loss of earnings could both be included in a special damages claim. We will cover these in more detail later in this guide. For now, we’ll look at other elements that could be included. Each claim will vary, but you could ask to be compensated for:
- Care costs. If you need support with daily tasks while recovering from your injuries, the cost of a carer could be claimed. This might be an hourly rate calculated to recover the time a family member spent looking after you.
- Travel costs. Making visits to a hospital or doctor could mean you have to pay for fuel, public transport or parking. If that’s the case, these costs could be added to your claim.
- Medical expenses. The cost of prescription medication, over the counter treatments, and non-NHS services might prove costly. Therefore, they could be submitted with your special damages claim.
- Adaptations to your home. In cases where the claimant is left disabled following an accident, changes in and around the home might be required to help them cope. If that’s true, the cost of those changes could be claimable.
We advise that keeping a log of your spending can help explain what you are claiming for. Additionally, receipts, bank statements, pension statements and benefits documents should all be retained and submitted with your claim.
What Is Loss Of Earnings Compensation?
Quite simply, if you make a loss of earnings claim, the amount you’ll seek will be the amount of income you lost because of your injuries. To be entitled to make a claim, you will need to show that:
- You were owed a duty of care by the defendant.
- They caused an accident to take place through a breach of duty of care.
- You sustained at least one injury in the accident.
A legal duty of care comes from various pieces of legislation and rules. For example, The Highway Code gives all road users duties to use the roads with standard skill and to avoid accidents. Don’t worry too much about this though. If your case is taken on by a lawyer from our panel, they’ll explain which legislation applies.
To prove the other criteria, you can supply evidence yourself. For instance, accident reports, photographs, CCTV footage, medical reports and witness contact details could all help prove who was to blame for your injuries.
If you are claiming for a loss of earnings you should not just take into account earnings that you have already lost, but also earnings that you are predicted to lose due to long-term injuries.
This section looks at the evidence you may need when requesting compensation for loss of earnings in a claim.
This could include:
- Medical report: That could show that your injury has affected your ability to work, and how long this may last
- Wage slips/bank statements: That could act as evidence of your current earnings
If your injury has led to a loss of income and affected you financially, please reach out to one of our advisers for personalised information on how to make a claim, and what could be included in your compensation.
Some long-term injuries can have a serious impact on your ability to work. If that’s the case, you may be able to claim for future lost earnings. Let’s take a look at an example:
An electrician was injured because a scaffolding pole fell from a height and struck her wrist. After months of treatment, the wrist was fixed but the claimant needed metal pins and plates inserted to hold bones in place. Unfortunately, this resulted in residual symptoms that left her with reduced grip and dexterity. After an independent medical assessment, it was concluded that this injury would never get any better.
After treatment, the claimant was not able to complete many of the tasks required in her trade and had to look for work in other industries.
In this example, the claimant may have been able to claim for future lost income if the work she took on was paid at a lower level than her old job.
Even the likes of toe injuries could prevent you from returning to your same job role, so it’s important to consider the impact in full.
Future loss of earnings claims are based on a number of criteria. These include:
- The age of the claimant. This is because the figure could be based on the number of years until the relevant retirement age.
- Job prospects. This would be needed to calculate any potential for increased salary had the claimant not been injured.
- Current salary level.
Getting this type of claim right is really important as it can have an impact on the rest of your life. Therefore, why not call us for a free assessment of your case? If a lawyer from our panel takes on your claim, they’ll work hard to try and ensure you receive the maximum compensation payment.
Compensation For Loss Overtime And Other Benefits
The reason you don’t just supply your current salary level when claiming for loss of earnings is that you might have a higher level of pay if you work regular overtime. That’s why you’ll usually supply evidence of your last 3 months of earnings. However, if you work in a seasonal industry where you can get more overtime at certain times of the year, you may need to explain this to your personal injury lawyer if you choose to use one.
For example, if you work for a boat hire company, and you had your accident just before peak season, you may not have had any overtime in the 3 months before the accident. However, if you’re able to show that you would’ve been given overtime had you not been off work injured, you could still be entitled to claim for lost overtime payments.
Similarly, if you can prove that you’ve lost out on any benefits or potential benefits such as attendance bonuses, you could claim them back. Retain as much documentation as you can.
Please let us know how your income has been affected by your injuries and we’ll investigate your options for free. Our team provides free legal advice and will review your case even if you decide not to make a claim.
Compensation For Loss Of Pension Contributions
Similar to losses of future earnings, losing pension contributions can have a large impact on your future. If your injuries mean you are unable to achieve the same income as before for a long period, your pension contributions could be substantially reduced.
If that’s the case, you may be able to claim this as a loss. The calculations for this type of claim can be quite complex. For this reason, we would advise having specialist legal representation.
After your claim has been assessed by one of our advisors, we could appoint a lawyer from our panel. If they agree to work with you, they’ll use their experience to try and ensure all of your losses are claimed for. Please call today and let us look at your options with you.
Could I Claim For Lost Self-Employed Earnings?
If you are self-employed, claiming loss of earnings is still possible. The process might be more complex, but you are still entitled to make a claim. The main issue is that your income might fluctuate from month to month. In some cases, the fluctuation can be quite large.
Therefore, you’ll need evidence to back up your claim. This can include:
- Business accounts from previous years.
- Self-assessment returns.
- Copies of invoices.
- Copies of contracts.
- Evidence of work you’d agreed to take on but had to forgo because of your injuries.
If you work with a personal injury lawyer from our panel, they will assess your potential losses before submitting your claim. If the defendant argues over how much you have lost, your lawyer will discuss this with you. They could then counter those arguments using their legal expertise and additional evidence where needed.
If you’re not sure what level of income you’ve lost due to an accident that wasn’t your fault, why not call our team today? We’ll advise you of your options for free during your no-obligation telephone consultation.
No Win No Fee Loss Of Earnings Compensation
It is quite common to hear people delay starting a claim because they are worried about losing money when paying for legal representation. We believe it’s important to have a legal specialist on your side, so our panel of lawyers offer a No Win No Fee service for all claims that are taken on. That way, the claims process can become a lot less stressful because it is less financially risky to hire a solicitor.
The lawyer will need to conduct an assessment of your case before agreeing to work for you. If they decide to proceed, you’ll be given a Conditional Fee Agreement (CFA) to review. This is the contract between you and your lawyer. It explains what needs to happen for the lawyer to earn their fee. Additionally, it will show that:
- Your case can begin straight away as there are no upfront costs.
- There will be no lawyer’s fees payable during the course of your claim.
- If the claim is not won, you don’t have to pay lawyer’s fees at all.
The CFA will explain that the lawyer will only be paid if your case succeeds. If that happens, a fee will be deducted from the settlement amount. This called a success fee and is a small sum. So that you know the fee before you agree to work with the lawyer, it is detailed in the CFA. Also, by law, success fees are capped.
You are nearly at the end of this guide about loss of earnings compensation claims. If you are now in a position where you’re thinking about claiming, we can help. To discuss your case with us, you can:
- Call our free legal advice centre on 0161 696 9685 and talk to a specialist.
- Ask for a call back by submitting your details online.
- Use our live chat option to ask an online advisor questions about your case.
The claims line is available 24-hours a day. When you contact us, we’ll keep things as straightforward as possible. Importantly, we won’t overestimate your chances of receiving compensation. During your call, an advisor will run through your case with you and look at any supporting evidence. If the claim has some chance of success, you could be connected with a personal injury lawyer from our panel. Any claim they accept will be funded by a No Win No Fee agreement.
Thank you for reading our article on claiming compensation for loss of earnings. Hopefully, you have found the information useful. In this last part of the guide, we’ve listed some external resources that may help you. Please ask a member of our team if you need any further information.
Statutory Sick Pay (SSP) – a government page about when you’ll receive SSP and how much you should receive.
Holiday, Leave And Sickness – Acas advice on when you are allowed to take time off from work.
Find NHS Services – a tool to lookup NHS addresses which could prove helpful if you need to request medical records.
As we are able to support other types of compensation claims, we’ve added some more of our guides below:
Soft Tissue Injury Claims – Details on how much compensation might be paid to cover soft tissue injuries.
Medical Negligence – This article explains how you could be compensated for harm caused by medical mistakes.
Industrial Injury Claims – Information about claiming for industrial illnesses and diseases.
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