MPs press government for a plan within six months to tackle soaring NHS negligence claim costs
MPs have called on the government to urgently produce a plan within six months to tackle the soaring costs of clinical negligence claims. The House of Commons Public Accounts Committee (PAC) issued the demand in its latest report on health spending, highlighting the ‘astronomical’ sums paid out in legal fees to claimants’ lawyers.
Chair of the committee, Sir Geoffrey Clifton-Brown, expressed deep concern over the government’s delay in addressing what is now the NHS’s second-largest liability, surpassed only by nuclear decommissioning costs. He said, “The fact that the government has set aside tens of billions of pounds for clinical negligence payments should give our entire society pause. This is a sign of a system struggling to do right by the people it is designed to help.”
The committee criticised the Department of Health and Social Care (DHSC) for failing to produce a clear strategy despite years of warnings. “It must be a priority of the highest order for government to reduce tragic incidences of patient harm, and lay out a mechanism to reduce legal fees to manage the jaw-dropping costs involved more effectively,” Sir Geoffrey added.
Embed from Getty ImagesThe PAC labelled the lack of progress as ‘unacceptable’, particularly as nearly one-fifth of the £2.8 billion paid out by NHS Resolution on clinical negligence claims in 2023/24—around £536 million—was spent solely on claimant lawyers’ fees.
In April 2024, the committee had urged the government to publish a detailed plan to reduce patient harm and costs by summer 2024. However, this was delayed by the general election. The newly formed government then pledged to set out a plan by the end of 2024, but as of May 2025, no concrete actions have been announced.
Among key issues highlighted is the government’s failure to establish fixed recoverable costs for lower-value claims. Although introduced under the previous administration, necessary legislation was not passed in time, leaving costs uncontrolled. Additionally, the Conservative government has considered a no-fault compensation scheme, but the Department of Health fears this could raise costs by making it harder to differentiate between negligence and accidents.
The DHSC maintains that rising clinical negligence costs are not due to falling patient safety, noting that claim volumes have remained stable in recent years. Instead, the department points to higher compensation payments and escalating legal fees as primary drivers.
A department spokesperson said, “The costs of clinical negligence claims have more than doubled in the last decade. We will examine the drivers of costs, how to manage spending on clinical negligence and the potential merits of reform options.”
Despite these reassurances, MPs insist that more decisive action is needed to safeguard taxpayers’ money and improve patient outcomes. They are urging ministers to swiftly deliver a comprehensive strategy combining harm reduction measures and legal cost controls.
The PAC’s report sends a clear message: the clinical negligence system is draining public funds at an unsustainable rate, and without urgent reform, the burden on the NHS and taxpayers will only worsen. The spotlight remains firmly on government to deliver meaningful change.
