Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Deferred
Significant proportion of clinical negligence compensation payments diverted to claimants' lawyers.
Conclusion
The Department told us that around 19% of the total compensation payments made in 2023–24 by NHS Resolution go to the claimants’ lawyers. This equates to £536 million of the total £2.8 billion paid to claimants in 2023–24 , which is over one–and–a–half times the amount spent by the Government Legal Department (the government’s principal legal advisers) in totality across all of its legal activities in the same period.29 The previous government announced plans to place limits on how much lawyers receive from lower damages clinical negligence claims from April 2024, but the required legislation was not introduced. The Department told us that to reduce legal costs by moving to a no–fault compensation model would likely be more expensive overall, whilst potentially not distinguishing between those suffering as a result of negligence and those as a result of an accident.30 25 Committee of Public Accounts, Thirty–First Report of Session 2023–24, Department of Health and Social Care 2022–23 Annual Report and Accounts, HC 459, 29 April 2024, page 6 26 Treasury Minutes, Government Response to the Committee of Public Accounts on the Twenty-sixth to the Twenty-ninth, the Thirty-first, and the Thirty-third to the Thirty-eighth reports from Session 2023–24, CP 1151, September 2024, page 18, paragraph 4.4 27 Letter from the Interim Permanent Secretary of the Department for Health and Social Care relating to the 31st Report of Session 2023–24, DHSC 2022–23 Annual Report and Accounts, Recommendation 4, 25 February 2025 28 Qq 58–59 29 Qq 58–59; NHS Resolution, Annual Report and Accounts 2023/24, HC 73, 23 July 2024, pages 166–167; Government Legal Department Account Report and Accounts 2023–24, HC 74, 18 July 2024, page 64 30 Q 61; Department of Health and Social Care, Government to introduce legal costs cap to support victims, 16 September 2023 16 Unapproved special severance payments
Government Response Summary
The government agrees with the committee's concerns regarding rising clinical negligence costs, stating ministers will examine the drivers of costs and reform options, with a further response and implementation date to be advised.
Government Response
Deferred
HM Government
Deferred
4.5 The government agrees with the Committee’s recommendation. Target implementation date: to be advised 4.6 The rising costs of clinical negligence claims against the NHS in England are of great concern to government. Costs have more than doubled in the last 10 years and are forecast to continue rising, putting further pressure on NHS finances. The causes of the overall cost rise are complex and there is no single fix. The department recognises that clinical negligence costs is an important issue, and ministers will examine the drivers of costs, how to manage spending on clinical negligence and the potential merits of reform options 4.7 DHSC will provide a response to the Committee at the earliest opportunity and will keep the Committee updated regarding the implementation date.