NHS Resolution’s GP negligence claim bill rises to £149m

The cost of settling NHS clinical negligence claims continued to increase last year, from £2.7bn to £2.8bn.

Of this, £149m were paid out to settle claims against GPs in 2023/24, an increase of £9m from the previous year.

Medicolegal experts branded the figures ‘unsustainable’ and called on the Government to reform the clinical negligence system, so that more money could instead be spent on the NHS.

Expenditure on GP indemnity (GPI) schemes increased by £9m to £149m compared to the previous year, with almost all of the growth being in the Clinical Negligence Scheme for General Practice (CNSGP) scheme, which provides cover for incidents from April 2019.

The total number of new clinical negligence claims and reported incidents also increased by 273 since the previous year, totalling 13,784, NHS Resolution’s annual report said.

This included:

• 2,382 CNSGP claims (9% increase)

• 502 Existing Liabilities Scheme for General Practice (ELSGP) claims (29% decrease) – the report said that this decrease was expected as the scheme provides indemnity cover in respect of liabilities incurred before 1 April 2019 and numbers reduce over time as fewer new claims for incidents before that date are reported.

• 10,834 Clinical Negligence Scheme for Trusts (CNST) claims (3% increase) – this is NHS Resolution’s largest scheme and although membership is voluntary, all NHS trusts (including foundation trusts) in England currently belong to the scheme.

The report said: ‘The budget for GPI schemes was overspent due to the relatively short time NHS Resolution has been operating these schemes and their relative maturity, making it difficult to establish firmer information to support forecasting.’

In response to the report, medical defence organisations called on the new Government to reform the system under which ‘unsustainable’ amounts are paid out in compensation, as the money could be invested into the NHS instead.

The Medical Defence Union’s head of professional standards and liaison Dr Michael Devlin said that it is ‘extremely concerning’ that the costs being paid out in clinical negligence claims ‘continue to rise each year’.

He said: ‘This is money that could be invested into NHS services for the benefit of all patients. Unfortunately, the increase in damages being paid to patients each year can in large part be traced back to a legal system that is no longer fit for purpose – including a law from 1948 which means that personal injury defendants must disregard the availability of NHS care when paying compensation.

‘This means that public bodies like NHS Resolution have to fund private care, so billions of pounds from NHS funds goes to the independent sector.

‘Indeed, there have been numerous promises by previous governments to address unsustainable clinical negligence costs.

‘However, with a new government turning its attention to health policy, now is the ideal time for them to finally address the issue of clinical negligence reform.’  

Medical Protection Society (MPS) medical director Dr Rob Hendry said that as these costs spiral, more money is being diverted away from patient care and improvements to NHS services.

He said: ‘While the number of reported NHS clinical negligence claims remains steady, the total cost of claims – £2.8bn, up from £2.64bn – continues to grow. As these costs spiral, more money is being diverted away from patient care and improvements to NHS services.

‘The high cost of clinical negligence also has a significant impact on healthcare professionals not protected through a state-backed indemnity scheme – such as dentists and private practitioners – who bear the cost of protecting themselves against claims.

‘A balance must be struck between compensation that is reasonable but also affordable, and this requires a long overdue strategy led by the health and justice departments.

‘The new Government must turn its hand to this issue swiftly and consider some bold reforms if we are going to get close to addressing it.’

Earlier this year, plans to introduce fixed recoverable costs and a new process for some clinical negligence claims were delayed by the previous Government.