A NEW crackdown on 'easy payday' whiplash claims unveiled by the Government has been welcomed by campaigning former Blackburn MP Jack Straw.

The measures announced on Tuesday aim to result in lower insurance premiums to millions of motorists who are expected to save at least £35 a year.

Mr Straw started his campaign in 2011 because of high insurance premiums in East Lancashire's BB postcode, largely caused by the high local level of bogus whiplash claims and 'cash for crash' frauds.

Since the former Labour cabinet minister retired from Parliament in 2015, Hyndburn MP Graham Jones has pursued the issue in the House of Commons.

The Civil Liability Bill was promised in the Queen's Speech setting out the government programme of legislation in June 2017.

It will set fixed amounts of compensation for whiplash claims and ban the practice of settling cases without medical evidence.

Justice Secretary David Gauke said: "The number of whiplash claims has been too high for too long.

"We are putting this right through this important legislation, ensuring whiplash claims are no longer an easy payday and that money can be put back in the pockets of millions of law-abiding motorists."

The new measures will yield around £1billion in savings which insurers have pledged to pass on to drivers.

Traffic accident-related personal injury claims are 50 per cent higher than a decade ago, despite a fall in the number of reported accidents.

Fixed compensation levels for whiplash claims will be set out later.

Mr Straw said: "This is very good news.

"I welcome these important steps by the government.

"They will hopefully result in motor insurance premiums in the BB1 postcode falling.

"This is what I have campaigned for since 2011.

"It would have been nice if it had happened sooner but it i good that action has finally been taken."

Mr Jones said: “Requiring the production of medical evidence is a big step forward in my view.

"Having fixed cash settlement bands is also to be welcomed.

"The important thing is that this legislation should discourage bogus and exaggerated whiplash claims."

Pendle Tory MP Andrew Stephenson joined the Labour politicians in welcoming the proposals.

He said: I am delighted the government is cracking down on fraudsters whose actions raise insurance premiums for careful, honest drivers especially in the BB post code area.”

Huw Evans, director general of the Association of British Insurers, said: "These proposals would be great news for motorists."