Costs of clinical negligence

Public Accounts Committee Open Inquiry
Opened: 10 Jul 2025 Parliament page
The PAC in its 2025 scrutiny the Department of Health and Social Care’s (DHSC) annual report and accounts 2023-24 called on government to reduce tragic incidences of patient harm. The PAC found it unacceptable that DHSC had yet to develop a plan to deal with the cost of clinical negligence … Read more
18 Recommendations
9 Conclusions
1 Report
1 Oral session
5 Letters
1 Event
Oral evidence sessions 1 session
Elizabeth O'Mahony · Department of Health and Social Care Helen Vernon · NHS Resolution Professor Aidan Fowler · NHS England Samantha Jones · Department of Health and Social Care
Recommendations & Conclusions
27 results
2 Recommendation
64th Report - Costs of clinical ne…
Establish a national framework for patient safety with clear targets and improved complaints system.
The NHS has not done enough to tackle the underlying causes of harm to patients. The Department and NHS England’s approach to patient safety lacks coordination. Patients often pursue legal action to get answers and accountability due to a confusing … Read more
HM Treasury
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3 Recommendation
64th Report - Costs of clinical ne…
Establish a national system for sharing and analysing clinical negligence data to improve patient safety.
We are concerned there is far too little data on the factors behind clinical negligence, given its huge impact on people’s lives and NHS finances. Behind every clinical negligence claim is a tragic incident of patient harm. We were disappointed … Read more
HM Treasury
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4 Recommendation
64th Report - Costs of clinical ne…
Publish the Amos Review and outline concrete plans to reduce maternity care harm and costs.
The Department’s failure to address problems with maternity care in England has led to avoidable harm and unnecessary costs. Over the last 20 years the cost of settling claims involving infants and children has increased significantly. In 2024–25, costs for … Read more
HM Treasury
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5 Recommendation
64th Report - Costs of clinical ne…
Develop alternative dispute mechanisms to speed up decisions and reduce costs for less complex claims.
Legal costs in clinical negligence claims are disproportionate for medium and low volume claims. Legal costs in clinical negligence claims have risen sharply, with claimant legal fees increasing in real terms from £148 million in 2006–07 (in 2024–25 prices) to … Read more
HM Treasury
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6 Recommendation
64th Report - Costs of clinical ne…
Develop estimates and set out measures to prevent double payment for negligence care.
Clinical negligence claims are settled on the basis of costs of care in the private sector and yet there is nothing to stop the claimant using the NHS or publicly funded social care in the future, potentially inflating the costs … Read more
HM Treasury
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1 Conclusion
64th Report - Costs of clinical ne…
Past committees consistently raised concerns about rising clinical negligence costs.
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department of Health and Social Care (the Department), NHS England and NHS Resolution on the costs of clinical negligence.1 Our predecessor committees reported … Read more
HM Treasury
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7 Conclusion
64th Report - Costs of clinical ne…
Clinical negligence costs have soared and are projected to rise further.
Clinical negligence is the second largest provision on the government balance sheet after nuclear decommissioning. Over the period 2006–07 to 2024–25, the total provision for clinical negligence increased by £45.6 billion in real terms, from £14.4 billion at 31 March … Read more
HM Treasury
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8 Conclusion
64th Report - Costs of clinical ne…
High-value maternity brain injury claims drive significant clinical negligence costs.
NHS Resolution told us that clinical negligence is putting pressure on NHS budgets and is a significant cost to the public purse. The Department told us the reasons for the rising costs were complex. NHS Resolution explained that the increasing … Read more
HM Treasury
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9 Recommendation
64th Report - Costs of clinical ne…
Department unable to discuss policy due to ongoing clinical negligence review.
On multiple occasions the Department told us that it was unable to comment on many aspects of current policy as a recent review into clinical negligence by David Lock KC was still being considered by ministers.9 5 C&AG’s Report, paras … Read more
HM Treasury
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10 Recommendation
64th Report - Costs of clinical ne…
Patient safety system suffers from duplication and minimal improvement amidst reforms.
The NHS reports around 2.4 million patient safety incidents annually, most of which (70%) cause no harm to patients, but around 0.5% of patient safety incidents result in severe harm or death. The 2025 Dash review identified considerable overlap and … Read more
HM Treasury
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11 Recommendation
64th Report - Costs of clinical ne…
Unknown but significant cost of avoidable patient harm to health services.
The cost to health services of treating cases involving clinical negligence specifically or cases of avoidable harm to patients is unknown. The Organisation for Economic Co-operation and Development estimates that treating cases where harm was avoidable costs developed countries 8.7% … Read more
HM Treasury
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12 Recommendation
64th Report - Costs of clinical ne…
Confusing and poorly handled patient complaints system hinders early resolution efforts.
The 2025 Dash review of patient safety found that the current system for raising complaints and concerns is confusing, with issues often poorly handled and patients subject to delays and poor-quality responses. Research commissioned by NHS Resolution found that improving … Read more
HM Treasury
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13 Recommendation
64th Report - Costs of clinical ne…
Health system overwhelmed by patient safety recommendations, hindering affirmative action.
In 2024, the Health Services Safety Investigations Body reported that the broader health system was drowning in patient safety recommendations rather than taking affirmative actions to improve it.26 NHS England told us that there are over 1,500 recommendations in the … Read more
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14 Recommendation
64th Report - Costs of clinical ne…
Insufficient use of NHS data resources for patient safety insights and improvement.
It is generally accepted that learning from past incidents is fundamental to improving patient safety, but the 2025 Dash review found that insufficient use is made of the NHS’s data resources to generate insights and support improvement.28 NHS England told … Read more
HM Treasury
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15 Recommendation
64th Report - Costs of clinical ne…
Lack of centralised learning causes repeated patient safety incidents across trusts.
Written evidence submitted to us raised concerns about a lack of centralised learning leading to incidents being repeated across multiple trusts.31 When asked what it was doing to improve systemic learning from patient safety incidents, NHS England told us it … Read more
HM Treasury
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16 Recommendation
64th Report - Costs of clinical ne…
NHS Resolution exploring AI to analyse negligence claims data for insights.
Some clinical negligence firms are reportedly using artificial intelligence to triage claims more efficiently and effectively. NHS Resolution holds almost 30 years of experience and data concerning compensation claims.33 NHS Resolution told us it is starting to explore how technology … Read more
HM Treasury
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17 Recommendation
64th Report - Costs of clinical ne…
Costs for infant and child injury claims, particularly maternity brain injuries, significantly increased.
Over the last 20 years the cost of settling claims involving infants and children has increased significantly. The highest-value claims are typically those associated with brain injuries suffered in maternity care. In 2024–25, costs for these claims were £1,554 million, … Read more
HM Treasury
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18 Recommendation
64th Report - Costs of clinical ne…
Increasing clinical negligence compensation for children driven by legal precedents and long-term care needs.
NHS Resolution told us that harmed children require care costs for decades into the future.37 Damages can include compensation for pain and suffering, care costs, future lost earnings, educational support and accommodation adaptations. They are calculated based on a claimant’s … Read more
HM Treasury
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19 Recommendation
64th Report - Costs of clinical ne…
Long settlement times for child brain injury claims are being addressed by early notification scheme.
NHS Resolution told us it settles around 120 to 130 brain injury cases involving children every year, but historically it has taken an average of 11 or 12 years to settle each claim.43 We asked NHS Resolution what action it … Read more
HM Treasury
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20 Conclusion
64th Report - Costs of clinical ne…
Maternity workforce struggles and poor planning contribute to rising clinical negligence claims.
Evidence from the Royal College of Obstetricians and Gynaecologists suggested that the maternity workforce is struggling under the pressure of delivering increasingly complex care, with more than half of births involving medical intervention, such as a caesarean section or the … Read more
HM Treasury
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21 Conclusion
64th Report - Costs of clinical ne…
Claimant legal fees for clinical negligence have significantly increased as a proportion of total.
Claimant legal fees have increased in real terms from £148 million in 2006–07 (in 2024–25 prices) to £538 million in 2024–25 and now represent 15% of all settled costs. During the same period, NHS’s legal costs increased in real terms … Read more
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22 Conclusion
64th Report - Costs of clinical ne…
Alternative dispute resolution successfully increases claims resolved without litigation, saving significant legal costs.
Over the last 10 years, NHS Resolution has introduced several new approaches to help keep claims out of court. These alternative dispute resolution initiatives are typically less adversarial and more collaborative than conventional litigation and provide greater opportunities for claimants … Read more
HM Treasury
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23 Recommendation
64th Report - Costs of clinical ne…
Legal costs for low-value clinical negligence claims are disproportionately high compared to damages.
Around three-quarters of clinical negligence claims settle for £25,000 or less, but the legal costs for these claims vastly exceed the damages payable to claimants. In 2024–25, there was a 3.7:1 ratio of claimant and NHS legal costs compared with … Read more
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24 Recommendation
64th Report - Costs of clinical ne…
Plans to limit lawyer fees for low-value clinical negligence claims are stalled.
The previous government announced plans to place limits on how much lawyers receive from lower damages clinical negligence claims of under £25,000 where 85% of cases fall within this category from April 2024, but 51 Q 50 52 C&AG’s Report, … Read more
HM Treasury
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25 Conclusion
64th Report - Costs of clinical ne…
Presumption of private care in clinical negligence awards leads to double public payments.
The government may effectively be paying twice in some instances of clinical negligence, once through the compensation given to claimants and once again through providing NHS treatment and publicly funded social care. Section 2(4) of the Law Reform (Personal Injuries) … Read more
HM Treasury
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26 Conclusion
64th Report - Costs of clinical ne…
No clear data on clinical negligence claimants accessing public services post-compensation.
There is no estimate of the extent to which successful clinical negligence claimants then go on to use publicly funded health or social care services for their conditions.67 We asked NHS Resolution why there is no clear data on the … Read more
HM Treasury
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27 Conclusion
64th Report - Costs of clinical ne…
Debate over 1948 Act's private care presumption requires dedicated inquiry into double recovery.
Written evidence from the Medical Defence Union told us that Section 2(4) of the Law Reform (Personal Injuries) Act 1948 is based on a recommendation made in 1946, two years before the establishment of the NHS, which was caveated that … Read more
HM Treasury
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Correspondence 5 letters
29 Jun 2026 To committee Letter from the Permanent Secretary at the Department of Health and Social Care relating to Treasury Minute: cost of clinical negligence update, 19 June 2026
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21 May 2026 From committee Letter to the Permanent Secretary at the Department for Health and Social Care relating to Cost of clinical negligence, 21 May 2026
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12 Jan 2026 To committee Letter from the Chief Financial Officer at NHS England relating to the Committee’s evidence session into Costs of Clinical Negligence on 20 November 2025, 06 January 2026
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15 Dec 2025 To committee Letter from the Permanent Secretary at the Department for Health and Social Care relating to the DHSC-NHSE Transformation programme, 11 December 2025
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15 Dec 2025 To committee Letter from the Permanent Secretary at the Department for Health and Social Care relating to the Committee’s evidence session on 20 November on Costs of clinical negligence, 04 December 2025
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