NHS Resolution’s Annual Report for 2024/25 shows that it received 14,428 new clinical negligence claims and reported incidents in 2024/25. £3.1 billion was paid out in 2024/25 for compensation and associated costs on all of NHS Resolution’s clinical schemes, compared to £2.8 billion in 2023/24. £1.3 billion of the total clinical negligence payments in 2024/25 related to maternity.
The estimated ‘annual cost of harm’ for incidents in 2024/25 for the main clinical scheme, Clinical Negligence Scheme for Trusts (CNST), was £4.6 billion, down from £4.8 billion in 2023/24. This reduction reflects updates to discount rates and improvements in long-term inflation assumptions. NHS Resolution also reported that a record 83% of clinical claims were resolved without the need for legal proceedings.
"By working collaboratively to resolve claims for compensation against the NHS we are keeping patients, their families and healthcare staff out of court, while sharing what we learn back with the NHS to prevent the same things happening again. This means that over 11,000 people saw their claims resolved with mediation, negotiation and other non-adversarial processes without the need for court involvement," said Helen Vernon, Chief Executive of NHS Resolution.
The report describes how innovations such as NHS Resolution’s ‘Early Notification’ scheme for birth injury have enabled families to access compensation for immediate needs more rapidly. It also explains how NHS Resolution has worked with families and their representatives to ensure their involvement throughout the compensation process.
“We unequivocally support and promote candour and that clinical staff should be open and transparent. Where there is a claim for compensation, this needs to be investigated in line with the law but we always aim to resolve cases as quickly as possible to avoid distress to the family with four in five cases resolving early on without the need to involve the courts,” Helen Vernon continued.
Commenting on the report, Steven Davies, Head of Legal Services at Medical Protection Society, said: “At a time when NHS finances are in such a parlous state, and there much to be done to transform patient care and services, it is right to question whether the sums paid out on NHS clinical negligence claims - £3.1bn in 2024/25 - are sustainable. NHS Resolution also estimates that over £60bn is needed for future clinical negligence costs, making it one of the Government’s largest liabilities.
“The high cost of clinical negligence also impacts on healthcare professionals not protected through a state-backed indemnity scheme – such as private practitioners and dentists – who bear the cost of protecting themselves against claims.
“We welcome the news in the NHS 10-year plan that David Lock KC will provide expert advice on the spiralling cost of clinical negligence, ahead of a Government review in the autumn. A comprehensive strategy - which balances fair compensation for patients and affordability for the NHS and society - is long-overdue.”
View the report at: NHS Resolution’s Annual report and accounts 2024/25
