- Limits to be placed on how much lawyers receive from lower
damages clinical negligence claims
- This will save an estimated £500 million over the next decade
which could be spent on patient care.
- Changes will better support victims and preserve access to
justice
Legal costs will be capped in lower damages clinical negligence
claims to support victims, speed up justice and protect taxpayers
and NHS England cash.
During the past 16 years claimants’ legal costs have risen
four-fold for claims of up to £25,000. The amount spent by NHS
England on clinical negligence claims has also risen from £0.6
billion to £2.6 billion despite the number of claims remaining
stable.
This has created a situation where the claimants’ legal costs are
disproportionate and on average double what the claimant
themselves receives.
These costs are funded from the core NHS budget. It is estimated
introducing this system of fixed recoverable costs would save NHS
England £500 million during the next decade which could be spent
on patient care.
Minister for Health said:
“We want a fairer system for victims of clinical negligence which
provides speedier justice while also protecting NHS and taxpayer
funding.
“Those providing legal representation are due fair remuneration
for providing these services but this should not be out of
proportion to the claim or be to the detriment of justice or
front line services.
“By introducing fixed recoverable costs for clinical negligence
claims of £25,000 or below, we’re ensuring a better balance
between costs and compensation.”
The decision follows a consultation, which the government has now
responded to. It concluded claimant legal costs are too high and
the length and complexity of the legal process can also be
disproportionate given the relative straightforwardness of many
claims at this level. This also means people who have been harmed
are waiting longer to receive compensation.
Introducing a system of fixed recoverable costs is expected to
speed up the process and at a lower and more proportionate cost
while protecting victims and ensuring access to justice
continues.
This will not impact on higher value claims and would only affect
the level of the claimants’ legal costs, not the compensation for
the claimant.
The rate of fixed recoverable costs under the recommendations are
higher than those proposed in the consultation. The bolt-on
amounts for those claims involving protected parties or children,
will rise from £650 to £1,800.
The scheme will also give defendants responsibility for paying
the costs of neutral evaluation, where an experienced legal
professional evaluates the claim to speed up the process without
the need to go to court.
A further six-week consultation is also being launched to address
whether disbursements – legal costs incurred over and above
claimants’ legal costs such as court fees - should be included
within the fixed costs.
The new rules are expected to come into force in April 2024.
NOTES TO EDITORS
