A senior Whitehall figure has indicated that the Ministry of Justice (MoJ) appears to have succumbed to pressure from the Unions to abandon the proposed Personal Injury claims reform. A response by the MoJ was due in October 2007 but they were inundated with some 300 response documents, most of which objected to some aspect of the proposed changes.

The Department of Constitutional Affairs (now part of the MoJ) originally drew up the proposal which included limiting costs in order to remove referral fees and binding insurers to admissions in order to do away with After the Event insurance on the straight forward claims.

Trade Unions were concerned with the proposals as they believed that they would directly affect their funding and so they lobbied the Government accordingly. This pressure appears to have worked with the Government appearing to decide not to rock an already unsteady boat.