The Court of Appeal has handed down a judgment which will lead to a 10% increase in general damages in most civil litigation cases from 1 April next year.

The changes, which form part of the measures recommended by Lord Justice Jackson in 2010, are intended to create a balanced package of measures in conjunction with the Government's Legal Aid, Sentencing and Punishment of Offenders Act 2012.

An integral part of the overall costs regime envisaged by Jackson is that general damages in most actions (where judgment is given after 1 April 2013) should rise by 10% – a clause which was not included because the Court of Appeal is deemed "the tribunal best qualified to set guidelines for judges trying such actions".

The Court of Appeal issues such guidelines to ensure consistency of approach in the assessment of damages, and case law provides for such guidance to set damages and to keep tariffs up to date.

The judgment in Simmons v Castle explains that early notice was being given of the 10% increase due to take effect in April 2013 to enable all parties engaged in or contemplating litigation to be aware of the impending change, and prepare accordingly.

It states: "This court has not merely the power, but a positive duty, to monitor and where appropriate to alter, the guideline rates for general damages."

Eversheds head of personal injury Brendan Padfield commented: "Damages have always been set by the courts. Since the creation of the Legal Aid bill, the intention has always been to tag on a 10% increase in damages."

He added: "This development is therefore marks the judiciary delivering on its part of the bargain to create a coherent package of reform. Giving all parties nine months' notice of a hike in damages creates a level playing field to ensure both claimants and defendants to get their house in order beforehand."

For more, see Under pressure – are the legal aid cuts tough love or political expediency?