PPF wins cap appeal but DWP challenge rejected

In a court ruling on the compensation scheme's cap, delivered today (19 July), the higher court allowed a PPF appeal and agreed it could adopt a value test for calculating compensation on a one-off basis, as long as it corresponds to at least 50% of a members' pre-insolvency entitlement. This compares to an a ‘lifetime payments test', which would have required the PPF to continually calculate whether someone's given compensation had fallen below the 50% threshold, particularly if they lived for longer than assumed. It did not, however, give any view on the underlying assumptions used ...