Future Loss of Earnings & Ogden Table Reports

What This Covers

• Multiplicand calculation reflecting residual and but-for earning capacity
• Ogden Table multiplier selection with employment contingency reductions where applicable
• Application of the Lord Chancellor’s personal injury discount rate
• Career trajectory modelling for promotion and sector progression
• Smith v Manchester / Blamire-style approach where Ogden Tables are not suitable
• Full disclosure of table, multiplier, multiplicand, and reasoning in the report

When You Need This

• Future loss of earnings is a material head of claim in PI or clinical negligence
• Young claimants with long residual working lives
• Residual earning capacity is contested between the parties
• Discount rate and Ogden edition choices need expert explanation
• Court directions require expert evidence on future earnings quantum

Our Approach

• Ground every calculation in the current Ogden Tables edition
• State employment contingency and reduction factor choices with reasons
• Model alternative career trajectories where evidence supports ranges
• Distinguish Ogden Table quantification from Smith v Manchester awards
• Present figures the court can test under cross-examination

Loss of Earnings — Common Questions

Q.01

What are the Ogden Tables in personal injury claims?

The Ogden Tables (Government Actuary's Department actuarial tables) are the standard tool for calculating the present value of future loss of earnings in UK personal injury and clinical negligence proceedings. They provide multipliers — actuarially calculated figures that, when applied to an annual multiplicand (the net annual loss), produce a lump sum representing the present value of future loss over the claimant's working life.

Q.02

What is the multiplier and multiplicand in a loss of earnings claim?

In a future loss of earnings claim, the multiplicand is the annual net loss of earnings — the claimant's annual earnings but for the injury, less actual post-injury earnings. The multiplier is an actuarially calculated figure from the Ogden Tables that reflects the period of loss and the discount rate. Future loss is calculated by multiplying the multiplicand by the multiplier.

Q.03

What is a Smith v Manchester award?

A Smith v Manchester award is a lump sum award for handicap on the open labour market — used where a claimant has returned to work but their injury places them at a disadvantage in the job market. It is used as an alternative to full Ogden Table future loss calculation where the claimant is working but at a competitive disadvantage. It is typically expressed as a multiplier of annual earnings (commonly between 0.5 and 2 years' net earnings), assessed by the court or agreed in settlement.

Q.04

What is the Blamire approach to pension loss?

The Blamire approach to pension loss (from Blamire v South Cumbria Health Authority) is used where it is not possible to calculate pension loss with precision — typically for defined contribution schemes or where the claimant's pension position is uncertain. The court awards a lump sum representing a broad assessment of pension loss. An expert forensic accountant can model the range of pension loss and advise on an appropriate Blamire award figure.

Q.05

What must a CPR Part 35 loss of earnings expert report contain?

Under CPR Part 35 and Practice Direction 35, a loss of earnings expert report must include: the expert's qualifications, a summary of instructions received, the facts and materials relied upon, the methodology applied (including the Ogden Table edition, multiplier, multiplicand, and discount rate where applicable), the expert's opinion and reasoning, a summary of conclusions, and a statement of truth confirming the expert's duty to the court.