This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Comprehensive guide to interim settlements in public liability claims in England and Wales. Explains interim payments, legal framework under the Civil Procedure Rules and pre‑action protocols, eligibility, evidence requirements, benefits, risks, and practical steps for claimants and defendants.
In public liability claims, a claimant seeks compensation for injury or loss caused by another party's negligence. These claims may take months or years to resolve fully, particularly when liability or the extent of injuries is contested. An interim settlement, also known as an interim payment, can provide part of the compensation before the final settlement or judgment. Interim payments help claimants manage urgent costs - such as medical treatment or loss of earnings - during the ongoing claims process. This article explains how interim settlements operate in public liability cases, the legal framework, conditions for payment, procedural steps, and practical considerations for claimants and defendants.
What Is an Interim Settlement or Interim Payment?
An interim settlement - often called an interim payment - is a partial payment made to a claimant before the full compensation for a public liability claim is agreed or ordered. It is designed to provide financial support early in the claims process, for example to cover treatment costs, rehabilitation, or immediate financial hardship arising from injury. Interim payments are not additional compensation; any amount paid early is deducted from the final award once the claim is fully resolved.
Legal Framework for Interim Payments
Civil Procedure Rules (CPR) – Rule 25
Interim payments in civil litigation - including public liability claims - are governed by Part 25 of the Civil Procedure Rules 1998. Under CPR 25.7, the court may make an interim payment order to a claimant if certain conditions are met:
- The defendant has admitted liability for damages.
- The claimant has obtained judgment for damages to be assessed.
- The court is satisfied that, if the claim went to trial, the claimant would probably win a substantial amount of money.
- In cases with multiple defendants, the court can order interim payments if it believes liability would be established against at least one defendant and each is insured.
The court must not order more than a reasonable proportion of the likely final judgment and must take into account contributory negligence and any counterclaims.
Restriction on Disclosure
Once an interim payment is made, the fact of that payment is generally not disclosed to the trial judge when liability and final compensation are decided unless the defendant agrees. This rule helps ensure that interim financial support does not influence the substantive resolution of the case.
Pre‑Action Protocol Requirements
In lower‑value claims governed by the Pre‑Action Protocol for Low Value Personal Injury (Employers' Liability and Public Liability), claimants can request interim payments during the pre‑action phase. The protocol sets out specific procedures, including an Interim Settlement Pack with initial medical reports and evidence of financial loss. Some provisions require a minimum interim payment of £1,000, and larger amounts can be requested with justification. The defendant must respond within specified timescales and may pay an interim amount if agreed.
Conditions for an Interim Settlement
To obtain an interim payment, certain conditions must be satisfied:
Admission of Liability or Strong Prospects of Success
The defendant must admit liability or the court must be satisfied that the claimant is likely to succeed if the case goes to trial. This reduces risk that an interim payment is made in a claim with weak prospects.
Evidence of Need and Likely Compensation
Evidence must demonstrate that the interim payment is needed - for example, evidence of medical costs, loss of earnings or rehabilitation expenses - and that the amount requested is a reasonable proportion of the likely final compensation. Courts balance the claimant's needs with the risk of overpayment.
Insurance or Public Body Status
For personal injury claims, the defendant must typically be insured, or their insurer must cover the claim, or the defendant must be a public body. This condition helps ensure funds will be available to meet the interim payment.
How Interim Settlements Work in Practice
When Interim Payments Are Requested
Claimants or their solicitors submit a request for an interim payment either in the pre‑action phase (under the protocol) or later during court proceedings. This request is accompanied by evidence documents such as medical reports, financial loss details, and reasons for the sum requested.
Defendant's Response
In the low‑value protocol, the defendant must make the interim payment or explain why a full amount is not agreed within specified timeframes (usually 10–15 days), providing reasons for any shortfall.
Court Orders if Dispute Arises
If the defendant refuses or disputes the request for an interim payment in court proceedings, the claimant can apply to the court under CPR Part 25. The court will then decide whether the statutory conditions are met and, if so, order an interim payment.
Deduction from Final Award
Any interim payment received is deducted from the final compensation award once the claim concludes. For example, if interim payments total £30,000 and the final award is £150,000, the claimant would receive £120,000 on final settlement.
Benefits of Interim Settlements
Financial Support During the Claim Process
Interim payments can be crucial when claimants have immediate needs such as medical treatment, rehabilitation or income loss. They reduce financial pressure and allow claimants to pursue appropriate care without delay.
Reduced Stress and Better Recovery Outcomes
Access to interim funds often helps claimants focus on recovery without the urgency of financial concerns. Rehabilitation and ongoing support can be secured sooner, potentially improving long‑term outcomes.
Risks and Considerations
Reduction of Final Compensation
Because interim payments are deducted from the final award, claimants must consider whether the immediate financial benefit outweighs the reduction in later payments. Strategic planning with legal advisors can help ensure the right interim application is made.
Evidence Requirements
Strong, up‑to‑date medical evidence and financial documentation are needed to justify the sum requested. Without adequate evidence, applications may be refused or reduced by the court.
Potential Repayment Order
In some pre‑action protocol rules, certain interim payments may be considered ‘general' interim payments and could, in limited circumstances, be ordered to be repaid if the court later decides on different allocation of damages - although this is exceptional and depends on detailed rules of the protocol.
Practical Steps for Claimants
1. Gather Comprehensive Evidence
Collect detailed medical reports, financial records and expert evidence to support the need and quantum of an interim payment.
2. Submit a Clear Request
Ensure interim payment requests clearly specify why the funds are needed, which heads of loss they relate to, and include all supporting documents.
3. Engage Legal Representation
A solicitor experienced in public liability claims can advise on timing, evidence, and the best forum for requesting an interim payment, whether within protocol or through court.
4. Plan for Final Compensation
Understand how interim payments affect the final award and ensure that legal strategy balances short‑term financial need with long‑term compensation goals.
Common Questions
Can I get more than one interim payment?
Yes. Parties may agree to more than one interim payment, and claimants can apply for further interim payments if financial need and liability prospects continue.
Does an interim payment mean liability is conceded?
No. An interim payment - especially a general interim payment - may be made ‘without prejudice' to liability. Its purpose is to assist the claimant, and it does not necessarily represent an admission of fault.
What if the defendant refuses to pay?
If a defendant refuses to make a voluntary interim payment, the claimant can issue court proceedings and apply for a court‑ordered interim payment under CPR Part 25.
Key Takeaways
Interim settlements play a valuable role in public liability claims by providing financial support before full compensation is finalised. Governed by the Civil Procedure Rules and specific pre‑action protocols, interim payments require clear evidence of liability prospects, financial need, and reasonable proportion of likely final damages. While interim payments help manage immediate costs such as treatment and lost earnings, they are deducted from the final award and must be carefully managed. Understanding the conditions, procedural steps and practical implications helps claimants and their advisers secure early financial support while preserving overall compensation interests.
