Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Acknowledged
Clinical negligence costs have soared and are projected to rise further.
Conclusion
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, the annual cost of settling claims has increased in real terms from £1.1 billion in 2006–07 to £3.6 billion in 2024–25.5 Forecasts suggest that the cost of clinical negligence will continue to rise substantially in coming years, with annual payments expected to exceed £4 billion by 2029–30.6
Government Response Summary
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.
Government Response
Acknowledged
HM Government
Acknowledged
The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2026 The rising cost of clinical negligence and experience of patients navigating the system are of great concern to government and ministers are committed to addressing this issue and to improving the experience of NHS patients who have been injured by negligent NHS care. Between 2006-07 and 2024-25, total payments for clinical negligence increased five-fold from approximately £0.6 billion to £3.1 billion (nominal) and are forecast to continue rising, putting further pressure on NHS finances. The government does not accept that ever increasing 19 levels of compensation is in the wider public interest and agrees that this issue should be tackled. The government will write to the Committee by this Autumn to set out the case for change, and its workplan including to describe key milestones, and the likely areas of focus for reform. There is no one “quick fix” but instead a series of complex issues which together bring an upward cost pressure on clinical negligence budgets. The department is urgently examining how to best act swiftly to address some of the problems. As the Department of Health and Social Care (DHSC) described in the Committee hearing in November, David Lock KC has been providing expert advice on addressing the rising costs and how to improve patients’ experience of clinical negligence claims.