What is an Interim Payment?

Sophie Davies

When you’re injured in an accident that wasn’t your fault, the financial impact can be immediate and severe. Medical bills pile up, you may be unable to work, and essential care costs mount while you wait for your personal injury or medical negligence claim to settle. This is where interim payments can provide crucial financial relief during what can be a lengthy claims process.

An interim payment is an advance payment of compensation made before your personal injury case fully settles or goes to trial. It allows you to access funds for urgent expenses—such as medical treatment, rehabilitation, or lost earnings—without waiting months or years for your case to conclude.

In this guide, we’ll explain how interim payments work, when you can apply for one, and how they can help you focus on recovery instead of financial worry.

What is an interim payment?

An interim payment is a partial payment of compensation made to you before your compensation claim has been fully resolved. Rather than waiting for a final settlement or court judgment, you receive money in advance to cover urgent financial needs arising from your injury.

Interim payments are particularly important in serious injury claims where the final settlement may take years to negotiate. They ensure you can access essential treatment, care, and support immediately, rather than being forced to wait or go into debt.

The defendant or their insurance company makes the payment, and the amount is deducted from your final compensation award. If your claim is unsuccessful (which is rare once an interim payment has been agreed), you may be required to repay the money.

When can you claim an interim payment?

You can apply for an interim payment in a personal injury claim if certain conditions are met. The key requirements are:

• Liability is admitted or clear: The defendant (or their insurer) has accepted responsibility for the accident, or it’s obvious they will be found liable at trial.
• You have urgent financial needs: You require funds immediately for medical treatment, rehabilitation, care costs, adaptations to your home, loss of earnings, or other accident-related expenses.
• Your claim has significant value: Interim payments are typically made in moderate to high-value claims, particularly catastrophic injury claims involving brain injuries, spinal cord injuries, or amputations.

Interim payments are less common in smaller claims, such as minor whiplash injuries, because these cases typically settle quickly and the financial need is less urgent.

If you’ve been injured in a road traffic accident, workplace accident, or due to medical negligence, and you’re struggling financially while your claim progresses, an interim payment may be available to you.

How do interim payments work?

Once your solicitor has established that the defendant is liable (or likely to be found liable), they can request an interim payment on your behalf. Here’s how the process typically works:

1. Assessment of need : Your solicitor gathers evidence of your financial needs, such as medical reports, care cost estimates, proof of lost earnings, and receipts for accident-related expenses.

1. Request submitted : Your solicitor writes to the defendant or their insurer requesting an interim payment, setting out why it’s needed and providing supporting evidence.

1. Negotiation : In many cases, the insurer will agree to an interim payment without court involvement. The amount is negotiated based on your needs and the likely final compensation figure.

1. Court application (if needed) : If the insurer refuses or offers an unreasonably low amount, your solicitor can apply to the court for an interim payment order. The court will review the evidence and decide whether to grant the payment and how much should be paid.

1. Payment made : Once agreed or ordered, the defendant pays the interim amount directly to you or, in some cases, to a third party (such as a care provider or medical facility).

Interim payments can be made in a single lump sum or as periodic payments, depending on your circumstances. You may also receive multiple interim payments throughout the life of your claim as your needs evolve.

What can interim payments be used for?

Interim payments are designed to cover essential costs related to your injury. Common uses include:

• Private medical treatment: If NHS waiting times are long or you need specialist treatment not available on the NHS, an interim payment can fund private surgery, physiotherapy, or rehabilitation.
• Care and support: If you require professional care at home or in a facility, interim payments can cover carer costs while your claim progresses.
• Adaptations to your home: For serious injuries requiring wheelchair access, wet rooms, or stairlifts, an interim payment can fund these essential modifications.
• Specialist equipment: Wheelchairs, prosthetic limbs, mobility aids, or communication devices can be purchased with interim funds.
• Lost earnings: If you’re unable to work due to your injuries, an interim payment can replace lost income to keep you financially stable.
• Rehabilitation and therapy: Occupational therapy, speech therapy, psychological counseling, or other rehabilitation services can be funded.
• Immediate living expenses: Rent, mortgage payments, utility bills, and other essential costs can be covered if you’re struggling financially.

The key principle is that interim payments should be spent on needs directly arising from your injury. Your solicitor will help you justify the payment to the insurer and ensure it covers your most urgent requirements.

How much can you receive as an interim payment?

The amount you can receive as an interim payment depends on several factors:

• The likely final compensation: The interim payment must be a “reasonable proportion” of the compensation you’re expected to receive. Courts typically limit interim payments to around 80-90% of the estimated minimum damages to avoid overpayment.
• Your financial needs: The payment should reflect your immediate and essential needs. You’ll need to provide evidence of costs (medical reports, care assessments, receipts).
• The defendant’s liability: If liability is disputed or only partially admitted, the interim payment may be lower.

In high-value catastrophic injury cases, interim payments can reach hundreds of thousands of pounds. For example, someone paralyzed in a cycling accident who needs immediate home adaptations and 24-hour care may receive a substantial interim payment to cover these costs.

In more moderate claims—such as back injury claims requiring private surgery—the interim payment may be in the tens of thousands.

Your solicitor will calculate a realistic figure based on your circumstances and negotiate with the insurer to secure the maximum interim payment available.

How do you apply for an interim payment?

To apply for an interim payment, follow these steps:

• Instruct a specialist personal injury solicitor : An experienced personal injury solicitor in London will assess whether you’re eligible for an interim payment and guide you through the process.
• Gather evidence : Your solicitor will collect medical reports, care needs assessments, evidence of lost earnings, receipts for expenses, and estimates for future costs (e.g., home adaptations).
• Submit a request : Your solicitor writes to the defendant’s insurer outlining your need for an interim payment and providing supporting evidence.
• Negotiate with the insurer : Most insurers will engage in negotiations. Your solicitor will push for the maximum payment you’re entitled to.
• Court application (if necessary) : If the insurer refuses or makes an unreasonably low offer, your solicitor can apply to court under Civil Procedure Rule 25.7 for an interim payment order.
• Receive payment : Once agreed or ordered, the payment is made within a specified timeframe (usually 14-28 days)

The process can take several weeks, but in urgent cases—such as needing immediate surgery or care—your solicitor can expedite the request.

What happens if the defendant refuses?

If the defendant or their insurer refuses to make an interim payment voluntarily, your solicitor can apply to the court for an interim payment order.

The court will grant an interim payment if:

• The defendant has admitted liability, or
• You have obtained judgment against the defendant for damages to be assessed, or
• The court is satisfied that if the claim went to trial, you would obtain judgment for a substantial amount of damages (even if liability is not yet fully admitted).

The court will assess the evidence and decide whether an interim payment is appropriate and, if so, how much should be paid. The defendant must comply with the court order.

In practice, most insurers will agree to an interim payment rather than face court proceedings, as it’s often in their interest to settle claims efficiently and avoid additional legal costs.

Do interim payments affect your final settlement?

Interim payments are deducted from your final compensation award. They are not additional money on top of your settlement—they are an advance on the total amount you will eventually receive.

For example:

• If you receive an interim payment of £50,000 and your case settles for £200,000, you will receive £150,000 as the final payment (£200,000 minus £50,000 already paid).

If your final settlement is less than the interim payment (which is rare), you may be required to repay the difference. However, this is uncommon because interim payments are carefully calculated to avoid overpayment, and they’re typically only made in cases where liability is clear and the final award is expected to be substantial.

If your claim is unsuccessful (for example, if it’s later found that the defendant was not liable), you will generally have to repay the interim payment. This is why interim payments are usually only made in cases where liability is admitted or overwhelmingly clear.

Your solicitor will ensure that any interim payment you receive is reasonable and unlikely to exceed your final award.

How we can help

At Osbornes Law, we understand that waiting for compensation while you’re dealing with mounting bills and recovery can be incredibly stressful. Our award-winning personal injury team has extensive experience securing interim payments for clients with serious injuries, ensuring they receive the financial support they need when they need it most.

We handle all types of personal injury claims, including road traffic accidents, workplace accidents, and public liability claims. We work on a no-win, no-fee basis, so you won’t pay any legal fees unless your claim is successful.

If you’re struggling financially while your claim is ongoing, contact us today to discuss whether an interim payment is available in your case. Call us on 020 7485 8811 or fill in our online enquiry form for a free, no-obligation consultation.

Frequently Asked Questions

How long does it take to get an interim payment?

If the defendant’s insurer agrees to the interim payment voluntarily, you can receive funds within 2-4 weeks of the request. If a court application is necessary, it may take 2-3 months, though urgent applications can be expedited.

Can I get more than one interim payment?

Yes, you can apply for multiple interim payments throughout your claim as your needs change. For example, you might receive one payment for immediate surgery and another later for home adaptations.

Do I have to repay an interim payment?

Interim payments are deducted from your final settlement, so you don’t repay them in the traditional sense—they’re simply an advance. However, if your claim fails or settles for less than the interim amount (rare), you may need to repay the difference.

What if my injury is still developing?

You can still apply for an interim payment even if your prognosis is uncertain. The payment will be based on your current needs and the minimum compensation you’re likely to receive. As your condition stabilises, you can request additional interim payments or wait for final settlement.

Are interim payments taxable?

No, personal injury compensation (including interim payments) is not subject to income tax or capital gains tax in the UK.

Can I use an interim payment for anything I want?

While there’s no legal restriction, interim payments should be used for expenses related to your injury. Insurers and courts expect the money to fund medical treatment, care, lost earnings, or other accident-related costs. Misusing funds could affect future payment requests.