The cost of settling clinical negligence claims soars

Now at £60 billion, the government’s liability for clinical negligence claims has increased in real terms from £14.4 billion since 2006-07 and is the second largest liability on the government balance sheet.

The annual cost of settling clinical negligence claims has soared over the past two decades, from £1.1 billion in 2006-07 to £3.6 billion in 2024-25 due to increased claim numbers and the rising costs of settlements, according to figures from the National Audit Office (NAO).1,2 

NHS Resolution (NHSR) is responsible for handling clinical negligence claims against the NHS in England. The Department of Health and Social Care (DHSC) oversees NHSR and develops policy to manage the costs of clinical negligence cases.

A report from NAO reveals that between 2006-07 and 2016-17, the number of settled clinical negligence cases more than doubled, from 5,625 to 11,397. Most claims related to hospital activity, but volumes have been relatively stable since they peaked in 2016-17.

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