Select Committee · Public Accounts Committee

Costs of clinical negligence

Status: Open Opened: 10 Jul 2025 18 recommendations 9 conclusions 1 report

The PAC in its 2025 scrutiny the Department of Health and Social Care’s (DHSC) annual report and accounts 2023-24 called on government to reduce tragic incidences of patient harm. The PAC found it unacceptable that DHSC had yet to develop a plan to deal with the cost of clinical negligence claims, with so much taxpayers’ …

Reports

1 report
Title HC No. Published Items Response
64th Report - Costs of clinical negligence HC 1234 30 Jan 2026 27 Responded

Recommendations & Conclusions

27 items
2 Recommendation 64th Report - Costs of clinical neglige… Accepted

Establish a national framework for patient safety with clear targets and improved complaints system.

The NHS has not done enough to tackle the underlying causes of harm to patients. The Department and NHS England’s approach to patient safety lacks coordination. Patients often pursue legal action to get answers and accountability due to a confusing and unresponsive complaints system. Neither the Department nor NHS England …

Government response. The government states it has already implemented a national patient safety framework (2a) and reviewed the complaints system (2b) through the NHS Patient Safety Strategy (2019). For estimating costs of avoidable harm (2c), it explains that comprehensive tracking is not …
HM Treasury
3 Recommendation 64th Report - Costs of clinical neglige… Accepted in Part

Establish a national system for sharing and analysing clinical negligence data to improve patient safety.

We are concerned there is far too little data on the factors behind clinical negligence, given its huge impact on people’s lives and NHS finances. Behind every clinical negligence claim is a tragic incident of patient harm. We were disappointed that neither the Department nor NHS England could adequately explain …

Government response. The government rejects establishing a new national data sharing system, citing existing arrangements. However, it agrees to explore using artificial intelligence to analyse live data, with NHS England assessing machine learning algorithms for patient safety events and the Federated Data …
HM Treasury
4 Recommendation 64th Report - Costs of clinical neglige… Accepted in Part

Publish the Amos Review and outline concrete plans to reduce maternity care harm and costs.

The Department’s failure to address problems with maternity care in England has led to avoidable harm and unnecessary costs. Over the last 20 years the cost of settling claims involving infants and children has increased significantly. In 2024–25, costs for claims involving brain injury at birth were £1,554 million, with …

Government response. The government agrees and has established a National Maternity and Neonatal Taskforce to develop a national action plan based on the Amos Review's recommendations, which will serve as its full response. A timeline for delivering this action plan will be …
HM Treasury
5 Recommendation 64th Report - Costs of clinical neglige… Deferred

Develop alternative dispute mechanisms to speed up decisions and reduce costs for less complex claims.

Legal costs in clinical negligence claims are disproportionate for medium and low volume claims. Legal costs in clinical negligence claims have risen sharply, with claimant legal fees increasing in real terms from £148 million in 2006–07 (in 2024–25 prices) to £538 million in 2024–25. At 19% of total settled claim …

Government response. The government states the recommendation is under consideration and it is exploring international examples and policy proposals for reducing legal costs in clinical negligence. It will write to the Committee by Autumn 2026 to provide further information on its intentions, …
HM Treasury
6 Recommendation 64th Report - Costs of clinical neglige… Deferred

Develop estimates and set out measures to prevent double payment for negligence care.

Clinical negligence claims are settled on the basis of costs of care in the private sector and yet there is nothing to stop the claimant using the NHS or publicly funded social care in the future, potentially inflating the costs of claims. It is not clear the extent to which …

Government response. The government acknowledges the concern of 'Double Recovery' and states it is under consideration. However, due to limited data, it cannot commit to providing estimates within the six-month timeframe and will provide further information on its intentions by Autumn 2026.
HM Treasury
1 Conclusion 64th Report - Costs of clinical neglige… Not Addressed

Past committees consistently raised concerns about rising clinical negligence costs.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department of Health and Social Care (the Department), NHS England and NHS Resolution on the costs of clinical negligence.1 Our predecessor committees reported on clinical negligence in 2002 and 2017, and both this …

Government response. The government's response broadly addresses the wider issue of rising clinical negligence costs and mentions David Lock KC's ongoing advisory role. However, it explicitly states it has no plans to publish a separate report of David Lock KC's work, and …
HM Treasury
7 Conclusion 64th Report - Costs of clinical neglige… Acknowledged

Clinical negligence costs have soared and are projected to rise further.

Clinical negligence is the second largest provision on the government balance sheet after nuclear decommissioning. Over the period 2006–07 to 2024–25, the total provision for clinical negligence increased by £45.6 billion in real terms, from £14.4 billion at 31 March 2007 to £60.0 billion at 31 March 2025. Since 2006–07, …

Government response. The government acknowledges the rising cost of clinical negligence and its impact on NHS finances, and will write to the Committee by Autumn 2026 to set out the case for change and its workplan.
HM Treasury
8 Conclusion 64th Report - Costs of clinical neglige… Acknowledged

High-value maternity brain injury claims drive significant clinical negligence costs.

NHS Resolution told us that clinical negligence is putting pressure on NHS budgets and is a significant cost to the public purse. The Department told us the reasons for the rising costs were complex. NHS Resolution explained that the increasing costs of compensation for claims of £1 million in damages …

Government response. The government will write to the Committee by Autumn 2026 to set out the case for change regarding rising clinical negligence costs and its workplan, including key milestones and likely areas of focus for reform.
HM Treasury
9 Recommendation 64th Report - Costs of clinical neglige… Deferred

Department unable to discuss policy due to ongoing clinical negligence review.

On multiple occasions the Department told us that it was unable to comment on many aspects of current policy as a recent review into clinical negligence by David Lock KC was still being considered by ministers.9 5 C&AG’s Report, paras 6, 7, 1.18 6 C&AG’s Report, para 14 7 Q …

Government response. The government will write to the Committee by Autumn 2026 to set out the case for change, its workplan including to describe key milestones, and the likely areas of focus for reform in clinical negligence.
HM Treasury
10 Recommendation 64th Report - Costs of clinical neglige… Accepted

Patient safety system suffers from duplication and minimal improvement amidst reforms.

The NHS reports around 2.4 million patient safety incidents annually, most of which (70%) cause no harm to patients, but around 0.5% of patient safety incidents result in severe harm or death. The 2025 Dash review identified considerable overlap and duplication in the current patient safety landscape with relatively little …

Government response. The government states that the NHS Patient Safety Strategy (2019) already provides a national framework. They will update this strategy in 2026.
HM Treasury
11 Recommendation 64th Report - Costs of clinical neglige… Accepted

Unknown but significant cost of avoidable patient harm to health services.

The cost to health services of treating cases involving clinical negligence specifically or cases of avoidable harm to patients is unknown. The Organisation for Economic Co-operation and Development estimates that treating cases where harm was avoidable costs developed countries 8.7% of their health expenditure each year, on which basis the …

Government response. The government agrees to set a national framework for improving patient safety, but claims the NHS Patient Safety Strategy (2019) already sets such a framework and is achieving significant impact.
HM Treasury
12 Recommendation 64th Report - Costs of clinical neglige… Accepted

Confusing and poorly handled patient complaints system hinders early resolution efforts.

The 2025 Dash review of patient safety found that the current system for raising complaints and concerns is confusing, with issues often poorly handled and patients subject to delays and poor-quality responses. Research commissioned by NHS Resolution found that improving the NHS’s initial response to harmful incidents could reduce the …

Government response. The government agrees to review the NHS complaints system and improve the number of cases resolved without litigation, aiming for implementation by Summer 2028, including updating complaints regulations and increasing use of AI.
HM Treasury
13 Recommendation 64th Report - Costs of clinical neglige… Accepted

Health system overwhelmed by patient safety recommendations, hindering affirmative action.

In 2024, the Health Services Safety Investigations Body reported that the broader health system was drowning in patient safety recommendations rather than taking affirmative actions to improve it.26 NHS England told us that there are over 1,500 recommendations in the system and that managing those centrally is a huge task. …

Government response. NHS England is required to collect information about what goes wrong in the health service and use this to provide advice and guidance and has introduced the Patient Safety Incident Response Framework (PSIRF) which is a contractual obligation for all …
HM Treasury
14 Recommendation 64th Report - Costs of clinical neglige… Rejected

Insufficient use of NHS data resources for patient safety insights and improvement.

It is generally accepted that learning from past incidents is fundamental to improving patient safety, but the 2025 Dash review found that insufficient use is made of the NHS’s data resources to generate insights and support improvement.28 NHS England told us that although it aims to learn from litigation and …

Government response. The government disagrees with establishing a national system for sharing data, stating that existing data sharing arrangements and patient safety data are already in place.
HM Treasury
15 Recommendation 64th Report - Costs of clinical neglige… Rejected

Lack of centralised learning causes repeated patient safety incidents across trusts.

Written evidence submitted to us raised concerns about a lack of centralised learning leading to incidents being repeated across multiple trusts.31 When asked what it was doing to improve systemic learning from patient safety incidents, NHS England told us it had a “variety of mechanisms” but did not provide any …

Government response. The government disagrees with establishing a national system for sharing data, stating that existing data sharing arrangements and patient safety data are already in place.
HM Treasury
16 Recommendation 64th Report - Costs of clinical neglige… Accepted

NHS Resolution exploring AI to analyse negligence claims data for insights.

Some clinical negligence firms are reportedly using artificial intelligence to triage claims more efficiently and effectively. NHS Resolution holds almost 30 years of experience and data concerning compensation claims.33 NHS Resolution told us it is starting to explore how technology can mine its database to learn more about how claims …

Government response. NHS England is developing and evaluating AI models on Learn from Patient Safety Events (LFPSE) data to identify discrepancies and emerging themes and is assessing the feasibility of enabling secure, real-time analytics via the Federated Data Platform (FDP) to underpin …
HM Treasury
17 Recommendation 64th Report - Costs of clinical neglige… Accepted

Costs for infant and child injury claims, particularly maternity brain injuries, significantly increased.

Over the last 20 years the cost of settling claims involving infants and children has increased significantly. The highest-value claims are typically those associated with brain injuries suffered in maternity care. In 2024–25, costs for these claims were £1,554 million, and costs for paediatric claims were £325 million.36

Government response. The government agrees to learn lessons from failures in maternity care and address systemic failings, aiming for implementation by Winter 2026-27, including a national investigation, the National Maternity and Neonatal Planning Framework, best practice resources, and the Maternity Outcomes Signal …
HM Treasury
18 Recommendation 64th Report - Costs of clinical neglige… Accepted

Increasing clinical negligence compensation for children driven by legal precedents and long-term care needs.

NHS Resolution told us that harmed children require care costs for decades into the future.37 Damages can include compensation for pain and suffering, care costs, future lost earnings, educational support and accommodation adaptations. They are calculated based on a claimant’s specific circumstances and to reflect differing needs throughout their remaining …

Government response. The Secretary of State announced a rapid, national, independent investigation into NHS maternity and neonatal care to help understand the systemic issues behind why so many women, babies and families experience unacceptable care and will bring together the findings of …
HM Treasury
19 Recommendation 64th Report - Costs of clinical neglige… Accepted

Long settlement times for child brain injury claims are being addressed by early notification scheme.

NHS Resolution told us it settles around 120 to 130 brain injury cases involving children every year, but historically it has taken an average of 11 or 12 years to settle each claim.43 We asked NHS Resolution what action it was taking to try to manage the cost of maternity …

Government response. The Secretary of State announced a rapid, national, independent investigation into NHS maternity and neonatal care to help understand the systemic issues behind why so many women, babies and families experience unacceptable care and will bring together the findings of …
HM Treasury
20 Conclusion 64th Report - Costs of clinical neglige… Accepted

Maternity workforce struggles and poor planning contribute to rising clinical negligence claims.

Evidence from the Royal College of Obstetricians and Gynaecologists suggested that the maternity workforce is struggling under the pressure of delivering increasingly complex care, with more than half of births involving medical intervention, such as a caesarean section or the use of instruments such as forceps.47 Similarly, evidence from Sands …

Government response. The government agrees to learn lessons from failures in maternity care and address systemic failings, aiming for implementation by Winter 2026-27, including a national investigation, the National Maternity and Neonatal Planning Framework, best practice resources, and the Maternity Outcomes Signal …
HM Treasury
21 Conclusion 64th Report - Costs of clinical neglige… Deferred

Claimant legal fees for clinical negligence have significantly increased as a proportion of total.

Claimant legal fees have increased in real terms from £148 million in 2006–07 (in 2024–25 prices) to £538 million in 2024–25 and now represent 15% of all settled costs. During the same period, NHS’s legal costs increased in real terms from £76 million to £159 million, but fell as a …

Government response. The government is considering alternative dispute resolution mechanisms to reduce legal costs, and will provide additional information by Autumn 2026.
HM Treasury
22 Conclusion 64th Report - Costs of clinical neglige… Deferred

Alternative dispute resolution successfully increases claims resolved without litigation, saving significant legal costs.

Over the last 10 years, NHS Resolution has introduced several new approaches to help keep claims out of court. These alternative dispute resolution initiatives are typically less adversarial and more collaborative than conventional litigation and provide greater opportunities for claimants seeking non-monetary redress such as an explanation or apology. The …

Government response. DHSC, working with David Lock KC, is considering alternative dispute resolution mechanisms. The government will write to the Committee by Autumn 2026 to set out the case for change.
HM Treasury
23 Recommendation 64th Report - Costs of clinical neglige… Deferred

Legal costs for low-value clinical negligence claims are disproportionately high compared to damages.

Around three-quarters of clinical negligence claims settle for £25,000 or less, but the legal costs for these claims vastly exceed the damages payable to claimants. In 2024–25, there was a 3.7:1 ratio of claimant and NHS legal costs compared with damages payable for low-value claims.58 NHS Resolution agreed that legal …

Government response. The government is considering alternative dispute resolution mechanisms to speed up decisions and reduce costs for less complex cases, but specific policy proposals remain under consideration and will be addressed in a letter by Autumn 2026.
HM Treasury
24 Recommendation 64th Report - Costs of clinical neglige… Deferred

Plans to limit lawyer fees for low-value clinical negligence claims are stalled.

The previous government announced plans to place limits on how much lawyers receive from lower damages clinical negligence claims of under £25,000 where 85% of cases fall within this category from April 2024, but 51 Q 50 52 C&AG’s Report, paras 2.12-2.13 53 Q 64 54 Q 67 55 C&AG’s …

Government response. The government will write to the Committee by Autumn 2026 to set out the case for change and provide additional information on the department’s intentions, including Fixed Recoverable Costs for lower-value clinical negligence cases.
HM Treasury
25 Conclusion 64th Report - Costs of clinical neglige… Deferred

Presumption of private care in clinical negligence awards leads to double public payments.

The government may effectively be paying twice in some instances of clinical negligence, once through the compensation given to claimants and once again through providing NHS treatment and publicly funded social care. Section 2(4) of the Law Reform (Personal Injuries) Act 1948 provides that defendants who pay for the future …

Government response. The government is keeping the issue of double recovery under consideration and will write to the Committee by Autumn 2026 on the case for change, after David Lock KC has focused on this in his work.
HM Treasury
26 Conclusion 64th Report - Costs of clinical neglige… Deferred

No clear data on clinical negligence claimants accessing public services post-compensation.

There is no estimate of the extent to which successful clinical negligence claimants then go on to use publicly funded health or social care services for their conditions.67 We asked NHS Resolution why there is no clear data on the number of people who are paid compensation and go on …

Government response. The government is keeping under consideration the issue of clinical negligence claimants using publicly funded services and will write to the Committee by Autumn 2026.
HM Treasury
27 Conclusion 64th Report - Costs of clinical neglige… Deferred

Debate over 1948 Act's private care presumption requires dedicated inquiry into double recovery.

Written evidence from the Medical Defence Union told us that Section 2(4) of the Law Reform (Personal Injuries) Act 1948 is based on a recommendation made in 1946, two years before the establishment of the NHS, which was caveated that it “might need to be radically altered if a comprehensive …

Government response. The government is keeping the matter of double recovery under consideration and will write to the Committee by Autumn 2026 on the case for change and provide additional information on the department’s intentions, including Double Recovery.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
20 Nov 2025 Elizabeth O'Mahony · Department of Health and Social Care, Helen Vernon · NHS Resolution, Professor Aidan Fowler · NHS England, Samantha Jones · Department of Health and Social Care View ↗

Correspondence

4 letters
DateDirectionTitle
21 May 2026 From cttee Letter to the Permanent Secretary at the Department for Health and Social Care …
12 Jan 2026 To cttee Letter from the Chief Financial Officer at NHS England relating to the Committe…
15 Dec 2025 To cttee Letter from the Permanent Secretary at the Department for Health and Social Car…
15 Dec 2025 To cttee Letter from the Permanent Secretary at the Department for Health and Social Car…