Insurers not consumers will benefit if government plans to change the way people seek compensation for personal injury are implemented, despite attempts to portray the reforms as a bid to tackle questionable whiplash claims, a new economic study claims.

The findings of an economic study by Compass Lexecon show that gains from the proposed changes will boost insurers’ profits. At the same time the plans would curtail the number of people who can claim for soft tissue injury caused through no fault of their own.

The government is putting forward changes that would deprive people from being able to recover the cost of valuable legal advice for personal injury claims worth £5,000 and under.