What is an interim payment?
An interim payment is an advance payment of part of your compensation. It is paid before your claim is fully settled, while the case is still ongoing.
Why are interim payments helpful?
Interim payments are most common in cases involving serious or long-term injuries, where ongoing support is needed.
Medical negligence claims can take years to conclude. During this time, you may need money to pay for treatment, rehabilitation, care, or specialist equipment. An interim payment could be used to cover these costs to try to allow you to regain some independence.
Interim payments also help the legal team better understand your needs and the real cost of care and support.
In some high-value cases involving life-changing injuries, an interim payment may even be used to help fund the purchase of suitably adapted accommodation.
Do I have to use an interim payment for something related to my claim?
Not necessarily. While interim payments are often used to cover injury-related costs, they can be used for other purposes if needed.
For example, an interim payment could be used to pay off debts while your case is ongoing. However, interim payments are more likely to be agreed where there is a clear and reasonable need.
When can an interim payment be requested?
An interim payment can usually only be requested once:
- The Defendant has admitted liability (fault), or
- The Court has made a Judgment (decision) in the Claimant’s favour.
Even if liability is admitted, the Defendant is not automatically required to make an interim payment.
If an interim payment is being requested on behalf of a Child Claimant or “Protected Party” (someone who lacks mental capacity), the permission of the Court must be obtained before a payment can be made.
How can I request an interim payment?
Your solicitor can request a voluntary interim payment by writing to the Defendant’s representatives.
They will likely consider:
- The amount requested
- The likely overall value of the claim
- Whether the payment is a reasonable proportion of the final compensation
There is no guarantee that an informal request will be agreed, and there is no fixed timeframe for a response.
If an agreement cannot be reached, it may be necessary to apply to the Court for an interim payment. The application process and issues the Court will consider is set out in Part 25 of the Civil Procedure Rules.
How many interim payments can I receive?
There is no set limit on the number of interim payments you can receive. However, the total amount must be a reasonable proportion of your final compensation.
Will an interim payment affect my benefits?
If you receive means-tested benefits, an interim payment could affect your entitlement, depending on the amount received.
However, this can often be avoided by setting up a Personal Injury Trust, which can protect your benefits while allowing you to use your compensation.
Alpa Rana, Legal Director and Specialist Medical Negligence Solicitor from MDS, said “Interim payments can be incredibly helpful for clients, providing much-needed financial support while a claim is still ongoing. Where possible, we will always strive to request interim payments to help ease financial pressures and support our clients’ recovery and independence.”
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