By Matthew Best, Director – ATE Partnerships, Head of Personal Injury & Clinical Negligence
(Estimated reading time: 3 minutes 11 seconds)
Navigating change: the future of clinical negligence claims in 2025
As we approach the end of 2024, the clinical negligence sector continues to be influenced by potential legislative changes, government reviews and the ongoing challenges faced by the NHS. In this article I build on some topics previous covered, including the implications of fixed recoverable costs, the Labour government’s health policy shifts and the overarching financial pressures on the NHS.
In the interests of full disclosure – this article includes some AI-generated research content. This enabled us to widen the scope slightly in what we’ve commented on below. We then reviewed the content, checking for accuracy and consistency with our previous views.
Reflecting on 2024: Key Developments
2024 has, without doubt, been significant for claimant clinical negligence solicitors. As a quick reminder the actual introduction of fixed recoverable costs for lower-value claims remains uncertain; a policy aimed at streamlining the litigation process and reducing the costs incurred by both claimants and defendants. Please see 4) below for more on this topic.
However, as has been observed many times previously, this has also raised concerns about the potential impact on access to justice, particularly for those with legitimate claims but who may not meet the new thresholds. It will be essential that the claimant community keeps its ‘eye on the ball’ to ensure that clients are still able to secure fair compensation without undue barriers.
Another significant development was the new government’s prioritisation of NHS reform, spearheaded by Lord Darzi’s review. This review has set the stage for substantial changes in how the NHS operates, particularly in terms of governance, funding and patient safety. Its recommendations sparked discussions about the relationship between clinical negligence claims and NHS funding, particularly as the both the volume and size of compensation payments will strain an already stretched healthcare budget.
The NHS Funding Crisis and Clinical Negligence Claims
The NHS faces a funding crisis that complicates the environment in which clinical negligence claims are pursued. With the increasing costs associated with compensation payments, the burden on the NHS has become more pronounced. According to the NHSR, £2.8 billion was paid out in 2023/24 for compensation and associated costs on all of NHSR indemnity schemes for clinical negligence claims, compared to £2.64 billion in 2022/23 for clinical negligence claims.
The political ramifications of this funding issue cannot be understated, particularly as the government will have to balance the demands of a growing UK population (according to the ONS’ it will reach 70 million by 2026) with the need to maintain high standards of care.
The financial implications of clinical negligence litigation will likely be a central theme in health policy discussions. Here’s a couple of questions –
- The government may explore alternative funding models or risk-sharing arrangements with healthcare providers to alleviate some of the financial burdens associated with negligence claims?
- Will there be a call for a more equitable and sustainable approach to funding that could lead to significant legislative changes aimed at protecting both patients’ rights and the financial health of the NHS?
Anticipating 2025: Trends and Legislative Changes
With 2025 nearly here, claimant solicitors should consider the following trends that may shape the future of clinical negligence claims. Here are a few thoughts and questions on what may happen:
1.Further Legislative Reforms
As the new government continues to evaluate the implications of Lord Darzi’s review, will we see further legislative reforms aimed at addressing the challenges within the NHS and clinical negligence claims? Proposed changes might include enhanced transparency measures in the claims process, as well as increased resources for patient advocacy groups to help navigate the complexities of negligence claims.
2.Emphasis on Patient Safety and Prevention
The focus on patient safety is expected to intensify, leading to a culture of prevention rather than litigation – and not before time, many of us may say. The government may invest in training programs and initiatives designed to reduce clinical errors and enhance patient care standards. This shift could, in turn, lead to a decrease in the number of negligence claims as healthcare providers implement better practices.
3.Impact of Technology
Advancements in technology, particularly in the realm of telemedicine and electronic health records, could also play a significant role in clinical negligence cases. I suggest that claimant solicitors make themselves aware of how these technologies can be best utilised – to strengthen their cases and help ensure they are prepared for digital evidence.
4.Fixed Costs and Access to Justice
While fixed recoverable costs aims to streamline the claims process, the impact on access to justice for lower-value claims will have to continue to be monitored closely. Stakeholders may need to continue to campaign to ensure that claimants can still pursue legitimate claims without being discouraged by potential costs or administrative hurdles.
The previous government had intended to impose fixed recoverable costs (FRCs) on all claims valued up to £25,000, as well as introduce a new streamlined process for claims. Those plans were halted by the general election and the changes were never implemented.
It has now come to light that the issue was not discussed at the Civil Procedure Rule Committee meeting on 4 October, suggesting that the idea has been quietly shelved for now. It is understood that the committee, which would need to formulate and approve the necessary rule amendments to allow FRC for clinical negligence claims, is not actively considering the matter.
5.Autumn Budget 2024
At the end of October the UK government’s Autumn Budget was announced, which has potential implications, particularly for the funding of NHS services and financial implications of clinical negligence claims. Announcements reported on in the budget included:
- Increased Funding for the NHS: An additional £22 billion allocated to the NHS to address immediate pressures and reduce waiting lists.
- Tax Increases: A £40 billion tax increase, primarily affecting businesses and wealthier individuals, was announced to fund public services, including the NHS.
- Investment in Public Services: Substantial investments have been made in education, housing and infrastructure to stimulate economic growth and improve public services.
Conclusion
Clinical negligence claims and the NHS’s funding crisis will remain a critical area of focus for claimant solicitors in 2025. The outcomes of Lord Darzi’s review, alongside the potential for more legislative reforms and a renewed emphasis on patient safety, will significantly shape the claims landscape we are operating in.
The Temple Perspective
For claimant solicitors, these issues ahead will require a collaborative approach, balancing the pursuit of justice for clients with an awareness of the broader political and financial context. As ever, here at Temple we are committed to sharing our knowledge, predictions insights with our business partners and contacts
By keeping you informed about these development for clinical negligence claims we seek to help solicitors set their strategic direction (against a backdrop of either ‘a moving target’ or a ‘rapidly changing landscape’). We will continue to prioritise the rights and needs of our business partners and your clients to make sure they are at the forefront of what we do.
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You may also like to read these recent previous articles
- The New UK Labour Government: Implications for Clinical Negligence Claims
- CNCA agreement article published previously
- NHS Reform and Clinical Negligence: What Lord Darzi’s Review Means for Claimant Solicitors and Stakeholders
Matthew Best Cert CII
Head of Personal Injury & Clinical Negligence
Matthew Best Cert CII
Matt has an insurance background and joined Temple in 2011 having worked for 4 years in a leading insurance company where he was dealing with personal injury work. Matthew was promoted to Underwriting Manager and subsequently Senior Underwriting Manager taking on overall responsibility for Temple’s personal injury and clinical negligence underwriting department.
In 2022 Matt joined the board of directors as Director of ATE Partnerships. Matthew has cultivated fantastic relationships with our business partners for many years. His ability to build a clear understanding of their requirements and more importantly what is required to fulfil such requirements means he is ideally placed to support the strategic direction of the company.
Matt remains the head of the personal injury and clinical negligence department and is committed to all Temple’s business partners in order to deliver the highest level of service they expect. He is also responsible in making sure that Temple’s ATE and disbursement funding products remain competitive, but most importantly that they are fit for purpose for solicitors and their clients.
Read articles by Matthew Best Cert CII