Source · Select Committees · Public Accounts Committee

Recommendation 24

24 Deferred

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

Recommendation
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 Report, paras 3.12, 3.13 56 Q 64 57 Fletchers Solicitors (CCN0013); Switalskis Solicitors (CCN0014) 58 C&AG’s Report, paras 12, 2.16 59 Q 60 16 the required legislation was not introduced.60 We understand the Civil Rules Committee has put all its work on hold and there is no ongoing work in this area. Critics of these plans have raised concerns that they would impact access to justice for legitimate victims of clinical negligence.61 NHS Resolution agreed that access to justice for people who are severely harmed but who may have a low-value claim is an important consideration that needs to be part of decision making.62 The Department told us options to reduce legal costs in low-value cases form part of the ongoing review by David Lock KC.63 Assumptions around private care
Government Response Summary
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.
Government Response Deferred
HM Government Deferred
5. PAC conclusion: Legal costs in clinical negligence claims are disproportionate for medium and low volume claims. 5b PAC recommendation: The department should: • …clarify its position on a fixed recoverable costs scheme for lower-value clinical negligence cases at the earliest opportunity. 5.4 The Committee’s recommendation is under consideration by the government. Target implementation date: to be advised 5.5 The government is deeply conscious of the importance and benefit of ensuring that the costs of resolving all clinical negligence claims should be proportionate to the damages awarded, as well as the need to speed up resolution so as to mitigate the emotional impact of the process. As previously described, the disproportionate legal costs attached to lower-value claims is an area of focus for David Lock KC and DHSC, and DHSC is working through policy proposals, including fixed recoverable costs, to assess their impact and how the government can achieve the best outcome for the taxpayer and for those who have suffered harm. 5.6 The government will write to the Committee by this Autumn 2026 to set out the case for change and provide additional information on the department’s intentions, including Fixed Recoverable Costs.