25
Presumption of private care in clinical negligence awards leads to double public payments.
Conclusion
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) Act 1948 provides that defendants who pay for the future healthcare and treatment of damaged patients must do so on the presumption that such care will be provided by the private sector and not the NHS. Local authorities are also not able to consider clinical negligence compensation awards when assessing eligibility for state social care.64 NHS Resolution identified the assumption of private care as a major contributory factor to the increasing costs of very high-value cases (£1 million or more).65 It estimates that about 60% of very high-value settlements for damage related to the cost of providing future care.66
Government Response
A response document is linked to this report, dated 7 April 2026. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Inquiry
Costs of clinical negligence
Report
64th Report - Costs of clinical negligence
30 Jan 2026
HC 1234
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.6 yr
Report published
30 Jan 2026