This month sees big changes in the funding of personal injury litigation.

Legal aid has been withdrawn from personal injury claims, apart from medical negligence. New rules for no-win, no-fee deals will make them a much more attractive proposition for claimants, and trusts should brace themselves for a surge in claims from people who don't qualify for legal aid.

From this month, defendants who lose a case must pay not only the claimant's normal legal costs, but also the 'success fee' - up to 100 per cent on top of the normal costs - which rewards the lawyer for taking the risk of losing, and the premium the claimant paid to insure against losing.

Premiums for medical negligence claims are going down as insurers carry out strict risk assessment and back only lawyers who they know are expert in handling such cases.

Bank loans are available to fund the cost of the premium, repayable only if the case is won, so claims can be brought free of any financial risk.