Select committee: Public Accounts Committee
Conclusion 18
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 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
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".