Select committee: Public Accounts Committee
Recommendation 4
25th Report - DHSC Annual Report and Accounts 2023-24
Published 14 May 2025
Addressed to HM Treasury
Public Accounts Committee DHSC Annual Report and Accounts 2023-24 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
It is unacceptable that the Department is yet to develop a plan to deal with the cost of clinical negligence claims, and so much taxpayers’ money is being spent on legal fees. The Department has set aside an astounding £58.2 billion to cover the potential costs of clinical negligence events occurring prior to 1 April 2024, the second largest liability across government. Some £9.3 billion of that £58.2 billion relates to events occurring in 2023–24, when it also paid out £2.8 billion on clinical negligence claims. Behind these jaw–dropping amounts lie many tragic incidents of patient harm. The Department has only recently written to us in response to the previous Committee’s recommendation which was to set out, by summer 2024, the key reasons for patient harm and the actions it will take to address these. In addition, the Department says that an astronomical 19% of the money awarded to claimants goes to their lawyers, on top of the fees payable for the Department’s defence team. We are disappointed that huge improvements still need to be made to better protect both patients and public money. 6 recommendation Within the next 6 months, the Department should set out a plan with clear actions to: • Reduce tragic incidences of patient harm to as low a level as possible; and • Manage the costs of clinical negligence more effectively, including introducing a mechanism to reduce legal fees. • Improve patient safety across the NHS and in particular in maternity services.
From: Public Accounts Committee, 25th Report - DHSC Annual Report and Accounts 2023-24 (HC 639), 14 May 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Twenty-fifth Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 14 July 2025).
Treasury minutes: Government response to the Committee of Public Accounts on the Twenth-fifth report from Session 2024-26
Published 18 September 2025.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it "agrees" with each of the Committee's recommendations and gives target implementation dates ranging from "Recommendation implemented" to "to be advised".
- On the transfer of NHS England's functions, it agrees to share its plan and timetable, and says information on the size of resource functions "is likely to be confirmed in Autumn 2025".
- On the Annual Report and Accounts, it "plans to cover" the areas listed in the 2024-25 report and will update the Committee in September 2025.
- On publishing accounts before summer recess, it will write in September 2025 with detail on its multi-year plan, saying audit firms have indicated they lack capacity for pre-recess laying "in the shorter-term".
- On clinical negligence costs, it says ministers "will examine" the drivers of costs and "the potential merits of reform options", with the implementation date "to be advised".