Taxpayers benefit from NHS mediation

NHS Resolution has made significant strides in resolving clinical compensation claims, achieving a record 83% resolution rate without the necessity of legal proceedings. The organisation’s Annual Report and Accounts for 2024/25, released today, reveals that 11,110 clinical compensation claims were successfully resolved via dispute resolution processes, marking the highest percentage ever achieved. Helen Vernon, Chief Executive of NHS Resolution, stated that “by working collaboratively to resolve claims for compensation against the NHS we are keeping patients, their families and healthcare staff out of court whilst sharing what we learn back with the NHS to prevent the same things happening again.” This proactive approach means that more than 11,000 individuals benefited from mediation, negotiation, and non-adversarial processes, sparing them from formal courtroom involvement.

The report also highlights innovative programmes, such as the ‘Early Notification’ scheme, designed to expedite compensation for families affected by birth injuries, ensuring they receive necessary assistance promptly. NHS Resolution’s commitment to transparency is evident, with Vernon emphasising, “we unequivocally support and promote candour and that clinical staff should be open and transparent.” The organisation aims to investigate compensation claims efficiently and minimise distress to families, achieving early resolutions in four out of five cases without court intervention.

In 2024/25, NHS Resolution received 14,428 new clinical negligence claims and reported incidents, underscoring the ongoing stability in overall claims volume. The total payout for compensation and associated costs reached £3.1 billion, a notable increase from £2.8 billion the previous year. Maternity-related claims accounted for £1.3 billion of this total. The estimated ‘annual cost of harm’ for incidents within the Clinical Negligence Scheme for Trusts (CNST) was reported at £4.6 billion, showing a decrease from £4.8 billion in 2023/24 due to adjustments in discount rates and inflation assumptions.

Furthermore, there has been a notable increase in demand for NHS Resolution’s expert Practitioner Performance Advice service, with 1,420 new and reopened requests recorded, reflecting a 24% rise from the previous year. The Primary Care Appeals service also saw a significant surge in cases, with a 31% increase in requests for fair and prompt resolution of appeals and disputes. As of 31 March 2025, NHS Resolution reported provisions for future liabilities at £60.3 billion, up from £58.5 billion in 2023/24, influenced by ongoing activity and natural growth, alongside adjustments related to the Personal Injury Discount Rate and HM Treasury discount rates.