Compensation in discrimination claims set to increase
New “bands” for calculating compensation to Claimants for “injury to feelings” in discrimination claims have been published, which come into effect for claims brought on or after today, 11 September 2017.
Compensation in Discrimination Claims set to Increase
New “bands” for calculating compensation to Claimants for “injury to feelings” in discrimination claims have been published, which come into effect for claims brought on or after today, 11 September 2017.
For claims issued from today, compensation for “injury to feelings” will be at the following rates:
- Lower band: £800 - £8,400
- Middle band: £8,400 - £25,200
- Upper band: £25,200 - £42,000
- Exceptional cases: £42,000 +
What is injury to feelings?
Injury to feelings is compensation awarded in discrimination claims. It is compensation to a Claimant for “injured feelings” – i.e. the hurt, upset, anxiety or distress that they have suffered as a result of discriminatory acts.
A Claimant does not usually need to show medical evidence or a diagnosis of any psychiatric injury arising from the discrimination in order to claim injury to feelings. Where a Tribunal is satisfied that a Claimant has been subject to unlawful discrimination, it then assesses how much upset a Claimant has suffered, looking at all of the circumstances of the case before it, to decide how much compensation should be awarded for injured feelings. The Tribunal does that by categorising treatment into “bands”:
- The lower band.
This band is used in less serious cases of discrimination, for example where the act of discrimination is an isolated or one off occurrence.
- The middle band.
This band is helpfully described by the Tribunal as being for "serious cases, which do not merit an award in the highest band".
- The upper band.
The Tribunal will find that an award in the upper band is appropriate in the most serious cases, for instance whether there has been a lengthy campaign of discriminatory treatment. Only in the most exceptional cases will an award for injury to feelings exceed the upper band limits.
Once the Tribunal has determined which band the matter falls into, it then looks to the set compensation levels for that band in order to determine how much compensation the Claimant should receive. So, if the Tribunal determines that the compensation awarded should be in the lower band, the Claimant will receive between £800 - £8,400 compensation for injury to feelings. The Tribunal also has the power to award a Claimant other compensation on top of that, including for any financial loss suffered, and for being unfairly dismissed (if applicable).
Why the change?
Earlier this year, the Court of Appeal made clear that it felt that compensation for injury to feelings had fallen behind inflation and was therefore in need of adjustment. That prompted the increase.
What does this mean?
The increase in the compensation bands is dramatic. Previously, the limits were £600 - £6,000 for the lower band; £6,000 - £18,000 for the middle band; and £18,000 - £30,000 for the upper band. As a result, the potential exposure to employers in discrimination claims has markedly increased.
For discrimination claims brought on or after 11 September 2017, the position is simple; a Claimant can now recover more than they would have done had they issued the claim last week. That said, it is important to take this uplift against the backdrop that awards in the upper and exceptional bands are rare, with the current average award for discrimination claims being just under £14,000. Whilst that average may increase, it is unlikely that many will ever face the upper band awards above.
For ongoing claims, the position is less clear. The Tribunal may exercise its discretion to apply a percentage increase on the previous bands (likely a 10% increase), though it is unlikely it would apply the new bands absolutely to any existing claims. What happens in practice we will wait and see…
So, the advice to employers does not change: tread carefully and try not to unlawfully discriminate against employees…whilst it was potentially costly before, it is even more so now! If you are facing any allegations of discrimination, or are faced with the task of managing employees who you believe are likely to allege discrimination, please do not hesitate to get in touch with one of the team for advice.
If you would like more information on the content of this article please contact our Employment Team on 01603 281153.
Note: The content of this article is for general information only and does not constitute legal advice. Specific legal advice should be taken in any particular circumstance.
Autumn Budget 2025: Agricultural Property Relief & Business Property Relief Changes
It was announced in the 2025 Budget that from 6 April 2026, changes will be made to agricultural property relief and business property relief. These changes bring APR and BPR in line with the nil-rate band rules, meaning unused allowances can be transferred to a surviving spouse or civil partner. This is a significant step towards making estate planning easier for families who own farms or businesses.
The Employment Rights Act 2025 is expected to come into force tomorrow (18 December 2025)
After an extended period of back-and-forth amendments between Parliament and the House of Lords, on 16 December 2025, the ERB finally received approval from the House of Lords, with the formality of Royal Assent due to take place tomorrow (18 December 2025). Head of LP Employment, Dan Chapman, explains...
Autumn Budget 2025: Agricultural Property Relief & Business Property Relief Changes
It was announced in the 2025 Budget that from 6 April 2026, changes will be made to agricultural property relief and business property relief. These changes bring APR and BPR in line with the nil-rate band rules, meaning unused allowances can be transferred to a surviving spouse or civil partner. This is a significant step towards making estate planning easier for families who own farms or businesses.
The Employment Rights Act 2025 is expected to come into force tomorrow (18 December 2025)
After an extended period of back-and-forth amendments between Parliament and the House of Lords, on 16 December 2025, the ERB finally received approval from the House of Lords, with the formality of Royal Assent due to take place tomorrow (18 December 2025). Head of LP Employment, Dan Chapman, explains...
Charity of the Month: The Matthew Project
Leathes Prior is delighted to be supporting The Matthew Project as our Charity of the Month for December 2025. The Matthew Project supports young people and adults across Norfolk, Suffolk, and Essex to overcome issues around drugs, alcohol, and mental health, empowering them to rebuild confidence and lead fulfilling lives.
Leathes Prior’s Milan Pandit appointed President of the Norfolk & Norwich Law Society
Leathes Prior Solicitors is proud to announce that Milan Pandit, Solicitor in our Corporate & Commercial Team, has been appointed President of the Norfolk & Norwich Law Society (NNLS) for 2025/26.
Commercial Lease Renewals: A guide for Landlords & Tenants
Commercial lease renewals are a topic that every commercial landlord and business that rents commercial premises should have at the forefront of their minds. It is essential for good succession planning, though it is often neglected until the expiry of an existing lease term is looming or once the existing term has come to an end and the tenant is holding over. In this article, our newly qualified solicitor, Maggie Berry explores the process that landlords and tenants can expect when navigating this complex area of law.
Our Guidance, Your Legacy: What is a Will, and why should I make one?
Not only is a Will one of the most important steps you can take to protect your loved ones and ensure your wishes are respected, but it also limits the likelihood of a claim/dispute following your death. To ensure your loved ones and the causes you care about benefit from your estate, a Will is essential to ensuring this happens. Find out more in this article.
Lease extensions: The essentials to getting started
Extending your lease can seem complex, but taking the right steps early can make the process much smoother. Jake Mowatt, Associate and Harry Smith, Trainee Solicitor in our Residential Property Team outlines the key essentials every leaseholder should understand prior to extending their lease.
Upcoming changes to bringing employment law claims: What these mean for you
The highly anticipated Employment Rights Bill (ERB) is set to increase the time limits in which employees can bring an employment tribunal claim. Gareth Stevens & Rose Woolterton explain what this means for employers & employees.
Service Charges in Residential Leases: FAQs
Service charges are forever a hot topic in the world of property disputes, and it remains one of the most contentious areas between freeholders and leaseholders, particularly in long residential leases. Danny Turpin, Associate, discusses frequently asked questions regarding service charges on long residential leases.
Leathes Prior winners in nine categories in the prestigious Legal 500 Future Laywer Survey
We are thrilled to announce that the firm has placed once again in the Legal 500 Future Lawyer survey as No.1 in the UK for our Social Life; a ranking we have held in the survey for seven years out of the past nine years.
Jess’s Rule – New Guidelines for GPs
A new initiative is being rolled out across GP practices across England in the hope of preventing serious illnesses being missed by GPs where patients present with the same, or deteriorating, symptoms on multiple occasions. Kimberley Nelson in our Personal Injury & Clinical Negligence Team discusses new guidelines for GPs.
Leathes Prior are excited to announce that four Trainee Solicitors qualify at the firm
Leathes Prior is excited to announce that four of our amazing trainees, Eleanor Chapman, Maggie Berry, Alex Robinson, and Georgia Sartin, have successfully completed their training contracts and are now qualifying as Solicitors at the firm.
