Commenting on NHSR's annual report, Matthew Lee, CEO of the Medical Defence Union, said:

“While progress to reduce litigation in the resolution of clinical negligence cases should be welcomed, these figures show the NHS is still fighting a losing battle against spiralling claimant legal costs, particularly for lower value claims.

“Legal costs in lower-value clinical negligence claims are growing at an unsustainable rate, having increased by 50 per cent over the past six years, and are now routinely higher than the compensation paid to claimants. (1)

“At the MDU, we continue to see examples of this on an almost daily basis. In one case, a claimant received £1,400 in compensation while their legal costs totalled £60,000. In another, damages of £5,000 were accompanied by legal fees of £155,000. (2)

“This situation can’t go on. At a time when the NHS is under immense financial pressure and every pound counts, money that could be invested in frontline patient care is instead being diverted into excessive legal costs.

“The report reinforces the urgent need to introduce fixed recoverable costs for lower-value clinical negligence claims to bring claimant legal fees under control. This reform has been repeatedly delayed over the past 3 years, despite cross-party agreement about the need for action.

“MDU members and healthcare workers across the NHS deserve every possible pound spent on improving frontline care and the environment they work in. The time for action is now. We urge the Government to end the delays and introduce fixed recoverable costs without further hesitation."

Notes to editors

NHS Resolution Annual Report and Accounts 2025/26
Medical Defence Union data
The Public Accounts Committee highlighted the issue of rising clinical negligence costs earlier this year, and the Government has committed to setting out its plans to address it this Autumn

MDU's response to NHS Resolution's annual report on clinical negligence costs