Select committee: Public Accounts Committee
Conclusion 16
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 ↗
Conclusion (the committee's words)
The Department recognises an amount for potential future compensation payments for incidents of clinical negligence in its financial statements as a liability. This is reported in the accounts of NHS Resolution and is consolidated into the Departmental Group accounts. The Department recognised a liability of £58.2 billion in its 2023–24 accounts to cover the expected potential future costs of compensation for clinical negligence, which included £9.3 billion set aside to cover incidents that occurred in 2023–24. The Department has identified a further £24.6 billion of clinical negligence claims which it does not recognise as a liability but may need to pay in the future.23 The Department’s clinical negligence liability is the second largest liability across government.24 22 Q 59; Department of Health and Social Care Annual Report and Accounts 2023–24, pages 262, 308; NHS Resolution, Annual Report and Accounts 2023/24, HC 73, 23 July 2024, pages 29, 166–167 23 Department of Health and Social Care Annual Report and Accounts 2023–24, pages 262, 306; NHS Resolution, Annual Report and Accounts 2023/24, HC 73, 23 July 2024, pages 166–167, 188–189 24 Whole of Government Accounts, year ended 31 March 2023, HC 289, 26 November 2024, page 67 15
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".