The report highlights that the government’s liability for clinical negligence claims has increased from 14.4 billion to 60 billion since 2006-7. It also found that the annual cost of settling claims has increased from £1.1 billion (2006-7) to £3.6 billion (2024-25). The NAO has said this is due to increased numbers of claims and the rising costs of settlements.
The report offers some further insight into clinical negligence. Key findings included:
- The cost of clinical negligence in England appears much higher than in many other countries, as the UK offers universal healthcare, does not cap compensation, and has a more comprehensive understanding of the true cost compared to other nations.
- NHS Resolution and the Government Actuary’s Department estimate that the cost of clinical negligence cases will continue to increase each year, with annual payments potentially reaching £4.1 billion by 2029-30.
- Since the NAO last reported in 2016-17, NHS Resolution has worked hard to reduce the financial and emotional cost of clinical negligence by resolving claims faster and without litigation wherever possible.
The NAO have offered recommendations in the report to aid DHSC and NHS England in managing rising clinical negligence costs.
Dr Rosie Benneyworth, Interim Chief Executive responds to the findings, saying:
“The report from the NAO has shone an important light on the cost of clinical negligence. However, clinical negligence costs are only part of the picture. When combined with other data on patient harms it is a stark reflection on the true cost of safety incidents and failures – causing human suffering and carrying a huge financial burden. The OECD suggest this could be 13% of healthcare spend – a potential cost of £25 billion each year in England on safety failure.
“It is vital that we look beyond the technical solutions to legal liability and focus on prioritising patient safety in a proactive way – this will reduce the costs associated with unsafe care, but first and foremost will reduce the number of recurring safety incidents, and the resulting harm to people and their families.”
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