Despite ongoing efforts to resolve medical negligence claims earlier in the process, legal and settlement costs across the NHS rose significantly in 2024/25, according to the latest figures from NHS Resolution (NHSR).
New data from NHSR shows that £3.1 billion was paid in compensation and associated legal costs – up from £2.8 billion in 2023 / 2024.
Estimated annual “cost of harm” for incidents covered by the NHSR’s Clinical Negligence Scheme is estimated to stand at £4.6 billion. Projected liabilities for future claims are estimated to be around £60 billion, plus an estimated £27.4 billion relating to maternity failings since 2019.
The number of new medical negligence claims rose this year, marking a 5% increase from the previous year and surpassing figures from before the pandemic.
Encouragingly, the NHS has improved its early resolution rate with 83% of claims settled outside of court which is up significantly from 66% in 2016/17.
NHS Resolution responded positively to the National Audit Office’s recent examination, noting that adjustments to the personal injury discount rate influenced the timing and approach to case settlements.
Chief Executive Helen Vernon emphasised that settling claims outside of court streamlines the process and provides valuable lessons to improve patient safety moving forward.
Why patient safety matters
It goes without saying that every pound spent on compensation is arguably a pound not spent on care. These funds could instead support frontline services, training or proactive safety measures. However, most of the financial burden reflects serious errors that results in birth injuries, lasting disabilities or death.
The answer is not to blame medical negligence lawyers. Ask any medical negligence lawyer and they will tell you that claims are not driven by the financial outcome, but by a desire to achieve answers, accountability and the financial security to rebuild life after avoidable harm.
Preventable harm must be tackled. There must be a focus on prevention with targeted safety interventions, proactive system changes and a clear and unwavering commitment to improve patient safety.
Medical negligence costs reflect the consequences of system failures. Reducing the costs is not just about saving money – it’s about preventing harm, protecting patients, and restoring public trust in care.
Sharado Parbhoo a Paralegal Consultant from MDS, said “Redirecting focus and funding toward patient safety and early intervention is not only ethically essential – it’s financially smart too”.
