In a significant move to ensure fair compensation for victims, expedite justice, and safeguard NHS resources, the UK government has announced caps on legal costs for clinical negligence claims involving lower damages. These changes aim to strike a balance between providing adequate legal representation and preventing disproportionate costs, all while maintaining access to justice for those harmed.
Over the past 16 years, legal costs for claimants in clinical negligence claims of up to £25,000 have surged four-fold. This escalation in costs has resulted in a situation where claimants’ legal expenses are often double what they receive, making the system unsustainable and unfair. Notably, NHS England’s spending on clinical negligence claims has risen from £0.6 billion to £2.6 billion during this period, despite a relatively stable number of claims.
The introduction of fixed recoverable costs for clinical negligence claims up to £25,000 is expected to address this imbalance and save NHS England an estimated £500 million over the next decade. These cost savings can then be redirected towards patient care, enhancing healthcare services across the nation.
Maria Caulfield, the Minister for Health, emphasised the need for a more equitable system that ensures swift justice while safeguarding NHS funding. She recognised the importance of fair remuneration for legal representation but stressed that it should not overshadow the claim’s value or hinder justice and frontline services.
The decision to cap legal costs in lower damages clinical negligence claims follows a thorough consultation process. The government’s response to the consultation underscored the excessive nature of claimant legal expenses, considering the often straightforward nature of such claims. Delays in compensation for victims were also noted as a concern.
The introduction of fixed recoverable costs is expected to expedite the claims process, reduce overall expenses, and ensure access to justice remains available. Importantly, these changes will not affect higher-value claims and will solely address the level of claimants’ legal costs, preserving claimants’ right to compensation.
The government has also proposed higher fixed recoverable costs compared to the initial consultation, with additional provisions for claims involving protected parties or children. Furthermore, the scheme will require defendants to cover the costs of neutral evaluation, an efficient alternative to court proceedings.
To further refine the regulations, a six-week consultation will be launched to determine whether disbursements—additional legal costs such as court fees—should also be included within the fixed costs.
The new rules are set to be implemented in April 2024.
