We are now a tantalising step closer to implementing measures sorely needed to reduce one of the burdens of increasing spending on clinical negligence claims, says Laurence Besemer of FOIL
The government’s announcement that a group of representatives from all sides of the debate will form a working party to engage in work, including drawing up a structure for fixed recoverable costs, is extremely good news. We are now a tantalising step closer to implementing measures sorely needed to reduce one of the burdens of increasing spending on clinical negligence claims, that is, claimant legal costs, which have increased substantially in recent years.
To put that claim into context, in September 2017, the National Audit Office (NAO) reported that in the 10 years between 2006/07 and 2016/17, the overall cost of claims increased more than fourfold. Claimant legal costs accounted for 21% of that increase, rising by 533% from £77 million to £487 million. The same report stated that, in 2016/17, claimant legal costs exceeded damages awarded in 61% of claims.
Laurence Besemer is CEO of the Forum of Insurance Lawyers (FOIL)
The 2016/17 NHS Resolution annual report and accounts also reflect that picture with reference to the last two years from 2015/16 to 2016/17. During that period, claimant legal costs have increased by 19%, and in 2016/17, claimant legal costs accounted for 29% of the total cost of clinical negligence payments (by contrast, defence costs account for 7%). The NAO report indicates that in 201