Select committee: Public Accounts Committee

Conclusion 21

2nd Report - NAO financial audit insights 2024–25 Published 22 May 2026 Addressed to HM Treasury
Conclusion (the committee's words)
HMT acknowledged that clinical negligence had a significant impact on overall levels of compensation in terms of the high amounts paid each year, but noted there would inevitably always be clinical negligence in the health system.47 HMT informed us that clinical negligence will be reviewed by the Department of Health and Social Care as part of the upcoming Ten Year Plan for the NHS and progress had already been made on some aspects, such as on the large numbers of low-value claims where legal fees exceed payments.48 More widely, HMT noted that recent large percentage increases over the previous year in compensation amounts paid and owed by government were largely due to the start of two new schemes, for infected blood and Post Office compensation.49 HMT agreed there could be value in looking at how much the UK pays in compensation as a proportion of GDP compared to other countries.50 44 Q 35 45 C&AG’s report, paras 3.4-3.5 46 C&AG’s report, para 3.6 47 Qq 33-34 48 Qq 33-34 49 Q 33 50 Q 33 12

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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