Yes. But the position is I am not aware of any research which suggests that in other areas where compensation is available, it inhibits the mediation process.
I mean, someone comes along and they say, "You have made an unfair statement in your newspaper. It's inaccurate. It's been very distressing to me," and the MSA in its mediation process says eventually, "Well, look, the newspaper will publish an apology, and they'll pay you GBP200 in the recognition of your distress". As might happen if you have complained against a bank for mistreating your account in some way, which caused you distress.
Such systems happen throughout the commercial world, and I don't see any reason why they shouldn't operate effectively in the context of the media as well.