NHS Negligence Payouts Reach £3.1 Billion: What the Latest Figures Reveal

NHS Negligence Payouts Reach £3.1 Billion: What the Latest Figures Reveal

NHS negligence payouts in England exceeded £3.134 billion during 2024/25, highlighting the growing financial impact of avoidable patient harm across the healthcare system. While the number of new claims has remained relatively stable, compensation payments continue to rise because of the increasing cost of supporting patients who have suffered life-changing injuries.

Figures published by NHS Resolution show that damages, claimant legal costs, and defence costs all increased during the latest reporting year. At the same time, the organisation’s estimated liability for future claims climbed beyond £60 billion, making clinical negligence one of the largest obligations carried anywhere in government accounts.

A relatively small number of catastrophic injuries, particularly those involving maternity care and severe neurological damage, account for a substantial proportion of total compensation paid each year.

NHS Negligence Payouts in 2024/25: The Headline Figures

The £3.134 billion figure represented a 9.2% increase compared with the previous financial year. Of that total:

£2.31 billion was paid in damages to claimants.
£635.4 million was paid towards claimant legal costs.
£188.4 million covered NHS legal costs.
17,550 new claims were notified.
17,890 claims were closed.
Future liabilities were estimated at £60.3 billion.

Although claim volumes increased slightly, the rise was modest when compared with the increase in overall spending. New claims rose by just 2.4% year-on-year, while cash payments increased by more than 9%. In other words, the financial burden facing the NHS is increasingly linked to the value of individual claims rather than the number being brought.

Why NHS Negligence Compensation Continues to Increase

It’s important to note that clinical negligence claims often take several years to investigate and resolve. As a result, annual payment figures do not necessarily reflect incidents that occurred during the same period.

That being said, NHS Resolution has consistently identified several factors that are pushing costs upwards. The most important driver is the increasing value of awards involving patients who require lifelong care. Modern compensation settlements are increasingly designed to ensure seriously injured individuals receive the support they need throughout their lives. In turn, where negligence results in severe disability, the financial consequences can be substantial.

Damages may include:

Lifetime care costs
Specialist accommodation
Rehabilitation and therapy
Loss of earnings
Equipment and mobility aids
Future medical treatment
Case management support
Professional deputyship or Court of Protection costs, where a person lacks capacity to manage their own affairs

As life expectancy improves and care costs continue to rise, the value of these claims naturally increases. NHS Resolution has also pointed to rising claimant legal costs, greater use of Periodical Payment Orders, clinician shortages affecting litigation timetables, and court delays as contributing factors.

Key Factors Behind NHS Negligence Payouts

1. Maternity Claims Are Now the Biggest Cost Driver

Perhaps the most striking finding from recent reports is the dominant role played by maternity-related negligence. NHS Resolution reported that approximately £1.3 billion of clinical negligence payments during 2024/25 related to maternity claims alone.

The value of new clinical claims received also showed a significant concentration within obstetrics, with more than half of the total value of claims notified during the year related to obstetric care (including both Early Notification and non-Early Notification cases.

This trend reflects the devastating consequences that can arise when complications during pregnancy, labour, or delivery are not recognised or managed appropriately.

Examples may include:

Parliamentary scrutiny has highlighted how severe these cases can become. During 2024/25, obstetric cerebral palsy and serious brain injury claims settled with damages averaging approximately £11.2 million each. Although these claims represent only a small proportion of the overall caseload, they account for a disproportionately large share of total compensation expenditure.

For families, these cases are rarely about money alone. Compensation is intended to fund the support a child may need for the rest of their life, including care, therapy, equipment, adapted housing, education support and future loss of earnings.

Additional resource: A guide to birth injury compensation

2. Legal Costs Remain A Major Part Of The Overall Bill

Compensation payments receive most of the attention, but legal costs also represent a significant expense. During 2024/25, claimant and defence legal costs combined totalled almost £824 million.

This means legal fees accounted for approximately one quarter of all NHS Resolution cash payments during the year. Claimant legal costs increased particularly sharply, rising by more than 13% compared with the previous reporting period.

The issue has attracted increasing political attention, with policymakers examining whether reforms could reduce the overall cost of resolving clinical negligence disputes without limiting access to justice for injured patients. At the same time, NHS Resolution continues to encourage earlier settlement and alternative dispute resolution wherever possible.

For injured patients, it is important to understand that legal costs are separate from compensation. A successful claimant’s compensation is intended to meet their losses and future needs, not to punish the NHS.

3. Most Claims Never Reach Court

Despite common perceptions, the majority of NHS negligence claims are resolved without formal court proceedings. NHS Resolution reported that 83% of clinical claims concluded during 2024/25 were settled without litigation, which translates to more than 11,000 clinical claims being resolved outside the courtroom.

This reflects a broader shift towards earlier investigation, proactive admissions where appropriate, and greater use of mediation or negotiated settlement. The organisation has also expanded initiatives such as the Early Notification Scheme, which aims to identify severe birth injury cases at an earlier stage and provide faster support to affected families.

N.B. Even where a claim settles before trial, bringing an NHS negligence claim without a solicitor can still be challenging because of the expert evidence and legal procedures involved.

The Financial Reality of NHS Negligence Claims

Which NHS Trusts Have Paid the Most Compensation?

In recent years, among those reporting the largest compensation totals were:

University Hospitals Sussex NHS Foundation Trust
Barts Health NHS Trust
Mid and South Essex NHS Foundation Trust
University Hospitals Birmingham NHS Foundation Trust
University Hospitals of Leicester NHS Trust
Manchester University NHS Foundation Trust

An important caveat, however, is that larger providers naturally face greater exposure to negligence claims. Namely, they deliver more treatment and undertake more complex procedures, and so trust statistics should not be treated as simple league tables.

The Largest NHS Negligence Settlements in Recent Years

Several high-profile cases illustrate how catastrophic injuries can generate exceptionally large compensation awards. In January 2025, reports emerged of a £35 million settlement involving severe brain damage and cerebral palsy following failures to identify and treat Group B Streptococcus infection during childbirth.

Another High Court-approved settlement reportedly totalled £21.6 million after delays in delivery contributed to significant neurological injury.

These cases are exceptional, but they demonstrate why some NHS negligence claims result in very high compensation awards. Where a person requires lifelong care and support, the future cost can run into many millions of pounds.

Additional resource: Brain injuries in newborns

Could You Be Entitled to Compensation?

Behind every NHS negligence claim is a patient whose life has been affected by avoidable harm. While compensation figures can appear significant, claims exist to help injured patients access the care and financial security they may need in the future.

If you believe you have suffered harm due to substandard medical treatment, seeking legal advice can help you understand your options and whether you may be entitled to claim compensation.