The Commons Public Accounts Committee is disappointed in the £58.2 billion set aside to cover negligence claims and the lack of clarity after the abolition of NHS England.
The Commons Public Accounts Committee has said that it is disappointed that £58.2 billion has been set aside to cover the potential cost of clinical negligence events in the latest accounts.
The committee doesn’t hold back its criticism describing the sum as “astounding”, “astronomical” and “jaw-dropping” as it calls on the government to set out a plan with clear actions to improve patient safety across the NHS, and in particular in maternity services.
“This is a sign of a system struggling to do right by the people it is designed to help. It must be a priority of the highest order for government to reduce tragic incidences of patient harm, and lay out a mechanism to reduce legal fees to manage the jaw-dropping costs involved more effectively,” said Geoffrey Clifton-Brown, chair of the committee.
In what is the second largest liability across government after nuclear decommissioning, it detailed that 19% of the money awarded to claimants in 2023-24 goes to lawyers (£536 million of the total £2.8 billion paid that year), on top of the fees payable for the government legal team.
“As the cost of NHS clinical negligence claims continues to spiral, more money is being diverted away from patient care and improvements to services,” said Rob Hendry, chief member officer at mutual protection organisation Medical Protection Society. “The Public Accounts Committee is right to question whether such costs are sustainable for the NHS, and whether such significant amounts of money should be spent on legal fees,” he continued.
Hazy future
Forthcoming staff cuts and the abolition of NHS England have caused great uncertainty for all involved with the health system. In its report on the Department for Health and Social Care’s (DHSC) Accounts 2023-24, the committee underlines its concern at the impact this uncertainty may have on patients and staff.
“While the department has made progress, significant issues remain with its financial management and oversight of its arms-length bodies. We are concerned that it lacks a grip of the financial pressures it faces and therefore lacks adequate plans for key areas of spend and activity,” the report says.
It also highlights that there has been no insight from the government on how this major structural and operational change will impact key services and targets to improve patient care.
Specifically, it said that there was no clarity on how headcount reductions will be achieved at NHS England and the costs involved; how these reductions fit in with the wider 10 Year Health Plan for the NHS; what the impact will be on frontline services; what the impact will be on institutional knowledge; or even what the scale would be of the planned 50% headcount reductions.
“It has been two months since the government’s decision to remove what up until now has been seen as a key piece of machinery without articulating a clear plan for what comes next, and the future for patients and staff remains hazy,” said Clifton-Brown.
