Recommendation 16

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