Interim payments explained
Last updated · By Mustafa Bilgic
Why interim payments exist
Serious-injury claims can take two to three years or more to settle, because the injury must stabilise before it can be valued. That delay would be cruel if it meant a badly injured person had to wait years for any money while bills mounted and rehabilitation stalled. Interim payments solve this: where liability is clear, the injured person receives part of their likely compensation up front, and it is set against the final figure.
What interim payments are typically used for
- Private treatment and rehabilitation that speeds recovery beyond what is otherwise available.
- Lost income while the claimant cannot work.
- Home and vehicle adaptations for a newly disabled claimant.
- Care and support costs that cannot wait for settlement.
- Specialist equipment such as a wheelchair or prosthetics.
When can you get an interim payment?
In England & Wales, the court's power comes from the Civil Procedure Rules (Part 25). An interim payment can be ordered where, broadly, the defendant has admitted liability, or judgment has been entered, or the court is satisfied the claimant would obtain a substantial sum at trial. The defendant's insurer often agrees interim payments voluntarily once liability is accepted, without a contested hearing.
| Question | Answer |
|---|---|
| Who pays? | The defendant (in practice, their insurer) |
| When? | Usually after liability is admitted, before final settlement |
| How much? | A reasonable proportion of the likely final award |
| Is it extra money? | No — it is deducted from the final settlement |
| More than one? | Yes — several interim payments can be made over time |
How much can be paid?
The court will not order more than a reasonable proportion of the final award, and it takes care not to over-pay — partly because some serious claims end in a periodical payments order (an annual payment for life) rather than a single lump sum, and an over-generous interim payment could disrupt that. The figure is judged conservatively against the part of the claim that is effectively certain.
Interim payments and benefits
An interim payment is still compensation, so the same considerations apply as for a final award — including the recovery of certain state benefits under the Compensation Recovery Unit scheme, and the potential effect on means-tested benefits unless the money is held in an appropriate way (such as a personal injury trust). Anyone receiving a substantial interim payment should take advice on protecting it. For the bigger picture, see how compensation is calculated and future loss of earnings.
How to request an interim payment
In practice, most interim payments are agreed voluntarily once the defendant has admitted liability — your solicitor sets out the need (for example, a rehabilitation plan or evidence of lost income) and the insurer pays a sum on account. If the insurer refuses or offers too little, an application to the court under Part 25 of the Civil Procedure Rules can follow, supported by evidence of the likely value of the claim and the immediate need.
- Evidence of need — treatment quotes, a care or occupational-therapy report, proof of lost earnings.
- Evidence of value — enough to show you will recover a substantial sum, so the payment is a reasonable proportion of it.
- Liability position — usually an admission, or judgment already entered.
Rehabilitation and the early-intervention approach
Interim payments often work hand in hand with rehabilitation. Under the Rehabilitation Code, claimant and insurer are encouraged to fund treatment early — physiotherapy, psychological support, or workplace adaptations — rather than waiting years for settlement. Early intervention can improve recovery and reduce the eventual cost of the claim, so it is frequently in both sides' interests. For the bigger financial picture see future loss of earnings and care and assistance.
Frequently asked questions
What is an interim payment in a personal injury claim?
It is part of your compensation paid early, before the claim settles, to cover urgent needs such as treatment, home adaptations and lost income. It is most common in serious-injury claims once liability has been admitted, and it is deducted from your final settlement — so it brings money forward rather than adding to the total.
Can I get an interim payment before liability is admitted?
Usually not. The court generally needs the defendant to have admitted liability (or judgment to have been entered, or to be satisfied you would recover a substantial sum at trial) before ordering an interim payment. In practice most interim payments follow an admission of liability and are often agreed voluntarily by the insurer.
Will an interim payment reduce my final compensation?
It does not reduce the total value of your claim — but it is deducted from the final settlement because it is an advance on that settlement. If you received £50,000 in interim payments and the claim is worth £400,000, you receive the remaining £350,000 at the end. It must also be managed carefully to protect any means-tested benefits.