Loss Of Earnings Claims Guide – How Much Can You Claim?

If you’ve suffered a loss of earnings due to an accident or injury, you may be entitled to claim loss of earnings with the help of a claims management firm. This guide explains how loss of earnings claims work, the evidence required, and how to ensure you recover financial losses caused by reduced earning capacity. Read on to understand the process, legal considerations, and how to claim. Fentons could be able to help you claim—contact us today for more advice.

Key Facts

• Loss Of Earnings Claims allow individuals to recover wages lost due to an accident, including future loss of earnings if their injury affects long-term employment prospects.
• A loss of earnings claim requires strong evidence for loss of earnings, such as payslips, tax records, and employer confirmation of missed work.
• Claimants may be able to recover both past and future loss of earnings, as well as additional financial losses linked to their injury.
• Many claims are handled on a No Win No Fee basis, meaning there is no upfront cost for pursuing compensation.
• Regulations such as the Civil Liability Act 2018 and the Limitation Act 1980 govern personal injury claims, ensuring a structured process for seeking accident compensation.

What Constitutes a Loss of Earnings Claim?

 

A loss of earnings claim arises when an individual is unable to work due to an accident or injury, leading to financial hardship. If someone is injured through no fault of their own and their ability to earn a wage is impacted, they may be entitled to recover financial losses. These claims fall under personal injury claim laws and allow individuals to seek reimbursement for lost wages and future income reductions.

To make a claim for loss of earnings, the following factors are considered:

• Past Loss of Earnings – Covers wages lost from the date of the accident until the claim is settled.
• Future Loss of Earnings – If the injury affects long-term or permanent workability, this calculates potential income loss.
• Bonuses and Overtime – If regularly earned, these can be included in the claim.
• Promotional Prospects – If the injury prevents career progression, this may factor into the compensation.
• Pension Contributions – Loss of employer contributions due to work absence may also be included.

A loss of earnings claim is essential to ensure financial stability after an accident. Fentons could be able to help you claim by assessing your case and guiding you through the process.

Eligibility Criteria for Loss Of Earnings Claims

To be eligible to claim loss of earnings, individuals must prove that an accident or injury directly prevented them from working and earning as usual. UK law, including the Civil Liability Act 2018, sets out strict criteria for personal injury claims, ensuring that only valid cases proceed.

The key eligibility requirements include:

• Employment Status – You must have been employed or self-employed at the time of the accident.
• Loss Directly Linked to the Accident – Medical records and employer verification must confirm the injury prevented you from working.
• Evidential Proof – Payslips, tax returns, bank statements, and other records demonstrating lost income must be provided.
• Time Limits – The Limitation Act 1980 enforces a three-year time limit from the date of injury to make a claim.
• Workplace Protections – If the injury happened at work, compliance with the Health and Safety at Work Act 1974 may support your claim.

Meeting these criteria is crucial to ensuring a successful loss of earnings claim. If you’re unsure whether you qualify, contact Fentons for more advice.

Are Self-Employed Individuals Eligible for Loss Of Earnings Claims?

Yes, self-employed individuals can also seek loss of earnings compensation, although proving the financial impact can be more complex. Since self-employed workers do not receive fixed salaries, they must provide detailed evidence of their usual income and how the accident affected it.

Key considerations when claiming loss of earnings as a self-employed individual include:

• Tax Returns – HMRC records can help demonstrate previous earnings before the accident.
• Invoices and Contracts – Proof of expected income from work that could not be completed due to injury.
• Bank Statements – Evidence of business revenue before and after the accident.
• Accountant Reports – A financial professional can verify lost earnings.
• Loss Of Earnings Insurance – If covered, self-employed individuals may receive compensation through their policy.

Although more documentation is required, self-employed individuals have the same right to accident compensation as employees. Fentons could be able to help you claim by assessing your case and guiding you through the evidence-gathering process.

Can I Claim for Future Loss of Earnings?

If an injury affects your ability to work long-term, you may be entitled to claim for future loss of earnings. This type of compensation is crucial for individuals who cannot return to their previous role or whose career prospects have been impacted. Courts and claims management firms assess the severity of the injury, medical evidence, and financial projections to determine the extent of future loss of earnings.

Factors considered in future loss of earnings claims include:

• Loss of Career Progression – If you were on track for promotions, this may be factored into the claim.
• Reduced Working Capacity – If you can only return to part-time work, compensation may cover the difference.
• Early Retirement – If the injury forces you to stop working sooner than planned, financial losses may be claimed.
• Inflation and Wage Growth – Future financial losses are adjusted to account for expected earnings increases.
• Medical Evidence – Reports from healthcare professionals confirm the long-term impact of the injury on your ability to work.

Proving future loss of earnings requires expert financial calculations and strong evidence. Fentons could be able to help you claim by ensuring your future income losses are properly accounted for.

Can I Claim for Loss of Bonuses and Overtime?

Yes, you may be able to claim for loss of bonuses and overtime if they formed a regular and expected part of your income. If your injury prevented you from working overtime shifts or meeting performance targets necessary for bonuses, you could seek compensation. However, these losses must be proven with documentation showing they were not one-off payments.

Types of lost earnings that may be claimed include:

• Performance-Related Bonuses – If you consistently earned bonuses before your injury, they may be factored into your claim.
• Commission-Based Income – Sales professionals and other commission-based roles may be able to recover lost earnings.
• Guaranteed Overtime – If overtime was a routine part of your pay, these losses may be included.
• Irregular Overtime – If overtime was not guaranteed, you may need additional evidence of regular earnings from previous months.

A loss of earnings claim can include more than just your basic salary. If you believe you’ve lost bonuses or overtime pay due to an injury, contact Fentons for more advice.

How Is Loss of Earnings Compensation Calculated?

Loss of earnings compensation is calculated using financial records and expert assessments to determine the income lost due to an accident. This includes both past loss of earnings and future loss of earnings, ensuring a fair settlement for the claimant. Courts and claims management firms often use a loss of earnings calculator to assess total financial losses.

Key steps in calculating loss of earnings include:

1. Assessing Pre-Accident Earnings – Payslips, tax records, and contracts establish the claimant’s usual income.
2. Calculating Time Off Work – The number of days, weeks, or months missed due to the injury is determined.
3. Adjusting for Wage Growth – Future salary increases are factored into the claim.
4. Including Additional Losses – Bonuses, overtime, pension contributions, and other financial losses are considered.
5. Deducting Benefits or Sick Pay – Any payments received from an employer, insurance, or the government may be subtracted from the total claim.

A loss of earnings compensation calculator can estimate potential payouts, but professional guidance ensures accuracy. Fentons could be able to help you claim and calculate the full extent of your financial losses. Below, are some examples of UK compensation payouts:

Whiplash (£4,215 to £4,345) – Lasts between 18 and 24 months.

Head injury (minor) (£2,690 to £15,580) – Minimal brain damage, if any. Award depends on severity, recovery time, ongoing symptoms, and headaches. Full recovery in weeks gets lower amounts; up to three years falls in the mid-range.

Psychiatric damage (less severe) (£1,880 to £7,150) – Based on disability duration and impact on daily life and sleep.

Loss of smell (£30,500 to £40,150) – Total loss of the sense of smell.

Back injury (moderate (ii)) (£15,260 to £33,880) – Ligament/muscle damage, prolapsed discs, or soft tissue injury causing chronic pain and limited mobility, often requiring extensive treatment.

What Is the Process for Claiming Loss of Earnings in the UK?

The process for claiming loss of earnings in the UK follows structured legal steps to ensure fairness and accuracy. A claims management firm can assist in gathering evidence, submitting the claim, and negotiating a settlement.

The key steps in the loss of earnings claim process are:

1. Assessing Eligibility – Ensure that your claim meets legal criteria, including proving the injury directly caused financial losses.
2. Gathering Evidence – Collect payslips, tax records, medical reports, and employer statements to support the claim.
3. Calculating Losses – Use a loss of earnings calculator or financial expert to determine past and future income loss.
4. Submitting the Claim – A claims management firm can handle submission to the responsible party’s insurer or legal team.
5. Negotiating a Settlement – Compensation offers are reviewed to ensure they cover the full extent of lost earnings, some claims may go to court.
6. Receiving Compensation – If successful, funds are awarded, often on a No Win No Fee basis, meaning no upfront legal costs.

Navigating a loss of earnings claim can be complex, but professional assistance ensures the best outcome. Fentons could be able to help you claim—contact us today for more advice.

What Role Do the Ogden Tables Play in Calculating Loss of Earnings?

The Ogden Tables are a key tool used in the UK to calculate future loss of earnings in personal injury claims. These actuarial tables help determine the compensation a claimant should receive based on various factors, including life expectancy, retirement age, and disability impact. Courts and claims management firms rely on the Ogden Tables to ensure accurate, fair calculations when awarding loss of earnings compensation.

Key factors considered when using the Ogden Tables include:

• Age at the Time of Injury – Younger claimants may receive higher compensation due to longer working years lost.
• Expected Retirement Age – Determines the length of time earnings are lost.
• Disability Impact – If the injury reduces the claimant’s working ability, the calculation adjusts for reduced earning capacity.
• Multipliers and Discounts – The tables apply adjustments based on economic and statistical trends.
• Inflation Adjustments – Ensures future earnings reflect expected changes in salary value over time.

The Ogden Tables play a crucial role in ensuring loss of earnings claims are calculated fairly and consistently. A claims management firm can help interpret these calculations to secure the correct level of compensation.

How Long Do I Have to Make a Loss of Earnings Claim?

In the UK, claimants generally have three years from the date of their accident to make a loss of earnings claim, as set out in the Limitation Act 1980. Failing to begin legal action within this period could result in losing the right to claim, though there are exceptions.

Key exceptions to the three-year rule include:

• Children (Under 18) – The three-year period starts from their 18th birthday.
• Lack of Mental Capacity – No time limit applies if the claimant cannot manage their legal affairs due to their condition.
• Date of Knowledge Rule – If the injury’s impact on earnings is not immediately clear, the three-year period may start from the date the impact was discovered.
• Criminal Injuries Compensation – Claims related to violent crimes must be made within two years.

It is crucial to begin a claim for loss of earnings as soon as possible to ensure all evidence is gathered and the case is handled efficiently. Fentons could be able to help you claim—contact us today for more advice, and to learn how to claim.

How Do I Prove Loss of Earnings After an Accident?

To successfully claim loss of earnings, strong evidence for loss of earnings is required. The burden of proof rests with the claimant, meaning you must demonstrate exactly how the accident affected your ability to work and earn an income. Without solid documentation, insurers may dispute the claim.

Essential evidence includes:

• Payslips – A record of pre-accident earnings to compare against lost income.
• Bank Statements – Proof of income before and after the injury.
• Tax Returns – For self-employed claimants, HMRC records confirm past earnings.
• Employer Confirmation – A letter from your employer detailing missed workdays and lost wages.
• Medical Records – Documentation linking the injury to your inability to work.
• Contracts and Work Schedules – Evidence of future work you were unable to complete.

Gathering and presenting evidence correctly is crucial for a successful loss of earnings claim. A claims management firm can assist in compiling and presenting this information to strengthen your case.

Can I Make a No Win No Fee Claim for Loss of Earnings?

Yes, many loss of earnings claims can be pursued on a No Win No Fee basis. This means claimants do not need to pay upfront legal fees, and they only pay if their case is successful. This arrangement makes it easier for individuals to seek compensation without financial risk.

Key benefits of a No Win No Fee claim include:

• No Upfront Costs – Legal fees are only paid if the case is successful.
• Lower Financial Risk – If the claim is unsuccessful, you do not have to pay legal fees.
• Access to Legal Support – Ensures everyone has the opportunity to claim, regardless of financial status.
• Stronger Case Review – Claims management firms take on cases with a high chance of success, ensuring claimants have solid evidence.

Pursuing a loss of earnings claim on a No Win No Fee basis makes compensation more accessible for those struggling financially. Fentons could be able to help you claim—contact us today for more advice.