In written evidence to the House of Commons public accounts committee into NHS financial sustainability, the DDU said that the government must introduce legal reforms to the current clinical negligence system if it wants to protect NHS finances from further erosion.
NHS Resolution’s Annual Report and Accounts for 2023 to 2024 revealed that the cost of clinical negligence is 1.7 per cent of the NHS budget, or £2.9bn per annum.
John Makin, head of the DDU said, “Getting to grips with the reforms needed to overhaul the flawed clinical negligence system should be top of the government’s list when looking to restore the NHS to financial sustainability.
“We have suggested a package of reforms including the introduction of fixed recoverable costs in lower value cases and a change in the law that currently allows claims to be valued on the basis care will be provided in the private sector rather than the NHS.
“The introduction of fixed recoverable costs for claims valued up to £25,000 was due to be in place by now and we are dismayed that this reform seems to have stalled yet again. The previous government believed that the implementation of such a scheme would result in a saving of approximately £454m over a 10-year period.”
John added, “The DDU continues to see disproportionate legal costs in cases against our members. In 2023, average claimant legal costs in DDU cases were in excess of £10,000 for claims settled up to £5,000 and in excess of £15,000 for claims settled between £5,000 and £10,000. For claims settled between £10,000 and £25,000, average claimant costs were in excess of £25,000.
“With the renewed focus on NHS finances, now is the time for the government to come forward with a package of reforms to address the clinical negligence system as whole.”