How Much Does the NHS Pay Out for Negligence?

In 2024/25, £3.1 billion was paid out to compensate patients harmed by avoidable medical errors. Alongside the money paid to settle these clinical negligence claims, even larger sums are held in reserve for cases yet to be resolved.

The specialist medical negligence solicitors at JMW have investigated NHS Resolution’s latest 2024/25 Annual Report and Accounts to investigate what the NHS actually spent on medical negligence compensation in 2024/25, what remains owed in future liabilities, and which areas of medicine continue to drive the highest costs across the health service.

How Much Does The NHS Owe In Clinical Negligence Liabilities?

The total value of clinical negligence claims and related medical negligence compensation liabilities reached £59.99 billion, up from £58.19 billion in 2023/34. That £1.8 billion increase - a rise of just over 3 per cent - highlights the ongoing financial strain caused by avoidable harm in medical treatment.

This total includes:

• Known clinical claims still under investigation or awaiting settlement.
• Incurred but not reported (IBNR) claims, where harm has occurred but no formal compensation claim has yet been made.
• Periodical Payment Orders (PPOs), which provide lifelong financial compensation for people who live with severe or permanent injury, often following a birth injury or catastrophic surgical error.

What Is The Difference Between Cash Paid And Total Liability?

In simple terms, cash paid refers to the money paid out by NHS Resolution in 2024/25 to settle medical negligence claims - the £3.1 billion in compensation, legal costs and associated expenses that were paid that year.

Liabilities, on the other hand, are an estimate of what the NHS might have to pay in the future. They include all open clinical negligence claims, incidents where harm has occurred but no claim has yet been made, and long-term periodical payment orders that provide lifelong support to people living with severe injuries.

This is akin to the difference between a bill already paid and a bill still waiting to arrive. The “cash paid” figure shows the current spending on medical negligence compensation, while the “liability” figure shows the potential future cost of harm that has already happened.

How Many New Medical Negligence Compensation Claims Were Resolved In 2024/25?

The number of clinical negligence claims resolved through settlement, withdrawal or legal closure showed almost no movement year on year. NHS Resolution recorded 13,329 resolved cases in 2024/25, compared with 13,382 in 2023/24, a marginal fall of 53 cases (-0.4%).

While the volume of new medical negligence claims continues to rise, the rate of resolution has effectively plateaued. This imbalance means more cases remain active within the system, increasing both the legal costs and financial liabilities carried forward each year. This underlines how important it is to retain the skills of an experienced and diligent clinical negligence solicitor who can carefully establish the case, gather complete medical records and other evidence, and secure the appropriate expert evidence to investigate and establish negligence in a case.

How Many New Medical Negligence Compensation Claims Were Made In 2024/25?

The NHS recorded 14,428 new clinical negligence claims in 2024/25. This is up from 13,784 the previous year. That’s 644 additional claims, a 4.67 per cent increase year on year.

Each of these claims represents an allegation that a medical professional or NHS Trust breached their duty of care, causing injury, deterioration or preventable suffering. For a claim to reach NHS Resolution, a patient or their family must already have taken the step of alleging that the harm they experienced was avoidable - a process that involves detailed medical evidence, legal review and personal cost.

Behind this increase lies a pattern that has persisted for years: avoidable harm caused by avoidable errors. It shows that too many patients are still being forced to seek justice through the clinical negligence process when proper care should have protected them in the first place.

What Drives The Cost Of NHS Negligence Payouts?

A striking feature of the NHS Resolution data is how unevenly compensation is distributed across medical specialisms. In 2024/25, obstetrics accounted for around 10 per cent of all new clinical negligence claims, but close to 60 per cent of the total compensation paid through NHS Resolution’s clinical schemes. No other area of medicine comes close in terms of overall cost.

This imbalance stems from the nature of the harm involved. Obstetric claims often relate to birth injuries resulting in very severe brain damage or lifelong disability, including conditions such as cerebral palsy. These cases attract exceptionally high awards because compensation must fund a lifetime of care, housing adaptations, medical equipment and professional support. Many are resolved through periodical payment orders (PPOs) - structured settlements that guarantee annual payments for as long as the injured person lives.

By contrast, surgery and emergency medicine generated a higher share of claims but a far smaller share of total payouts. Together, they made up roughly one-third of new clinical claims but accounted for only around one-fifth of total compensation paid. These cases typically involve surgical errors, delayed diagnosis or failure to recognise critical symptoms, and there will be a wide range of outcomes for the individuals involved. Some will require lifelong support and assistance, while others will have made a degree of recovery, which is reflected in the compensation paid. 

How JMW Can Help

At JMW, our specialist medical negligence solicitors act for individuals and families affected by negligent medical treatment. We have represented clients across England and Wales in both NHS and private healthcare claims, including cases involving surgical mistakes, birth injuries and misdiagnosis claims.

We handle most cases on a no win, no fee basis, meaning there is no financial risk to start your claim. Our legal team includes members of the Law Society’s specialist panel of clinical negligence solicitors and the Action against Medical Accidents (AvMA) solicitors panel.

If you’d like to learn more about how NHS negligence claims work, take a look at our related guides:

• How to Claim Against the NHS explains the full process of bringing a medical negligence claim.
• Our NHS Compensation Payouts Guide explores how NHS compensation is calculated, with typical payout examples, and discussion around the factors that influence the final settlement.

If you or someone you love has experienced avoidable harm due to a medical professional’s breach of duty, our solicitors can guide you through the claims process, help you collect evidence and work to secure the compensation you deserve.