Select committee: Public Accounts Committee

Conclusion 20

2nd Report - NAO financial audit insights 2024–25 Published 22 May 2026 Addressed to HM Treasury
Conclusion (the committee's words)
The largest ongoing compensation schemes currently administered by government have paid over £29 billion since 2005 and annual payments from these schemes doubled from £2.5 billion in 2023–24 to £4.9 billion in 2024–25.45 Future liabilities from these schemes were £73.4 billion at the end of 2024–25, with clinical negligence accounting for 82% (£60 billion) of this amount. In addition, the total lifetime financial impact of these schemes—in terms of compensation paid to date and future liabilities combined—is estimated to be £102.8 billion (as of October 2025).46

From: Public Accounts Committee, 2nd Report - NAO financial audit insights 2024–25 (HC 94), 22 May 2026

Government response

The government responded to the whole report on 4 August 2026 (deadline 22 July 2026).

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