Select committee: Public Accounts Committee
Conclusion 21
64th Report - Costs of clinical negligence
Published 30 Jan 2026
Addressed to HM Treasury
Public Accounts Committee Costs of clinical negligence All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
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 share of total settled costs (from 7% to 4%).52 NHS Resolution told us it had broadly kept the increase in defence costs level with inflation by using fixed and capped rates for its external legal support.53 It also claimed to have saved over £138 million in 2024 by challenging the bills presented by claimant lawyers.54
From: Public Accounts Committee, 64th Report - Costs of clinical negligence (HC 1234), 30 January 2026
Government response
The government responded to the whole report on 7 April 2026 (deadline 30 March 2026).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with the Committee's recommendation to set out an operational plan on clinical negligence, disagrees with others, and has some recommendations "under consideration".
- It agrees to write to the Committee "by this Autumn" with its workplan, key milestones and likely areas of focus for reform, but "disagrees" with publishing David Lock KC's review, saying it has "no current plans" to publish a separate report.
- It "disagrees" with estimating and tracking the costs of treating avoidable harm, stating it "would not be financially or logistically feasible", and "disagrees" with a new national data-sharing system, saying "there is already data sharing arrangements in place".
- On maternity, it agrees with the recommendation to learn lessons. Baroness Amos has confirmed the independent investigation will publish its final report in June 2026, and a National Maternity and Neonatal Taskforce will develop a national action plan.
- Alternative dispute mechanisms and fixed recoverable costs are "under consideration", and the government is "unable to commit" to the six-month timeframe for double recovery estimates. It will write to the Committee by Autumn 2026 on each.