The government saved £28.8 million through the use of alternative dispute resolution (ADR) last year, a report by the Department for Constitutional Affairs revealed this week.

The savings made through ADR almost doubled compared to last year, even though it was used in fewer cases than the previous year. Government departments used ADR in 167 cases last year, compared to 229 in 2004. Settlement rates dropped slightly, with 125 cases settling last year (75%), compared to 181 settlements in 2004 (79%). Savings in 2004 were £14.6 million.


The report said that although it was 'disappointing' that ADR had not been used in more cases, there had been 'an increasing number of disputes resolved outside formal ADR processes and without recourse to litigation', which had not been captured in the ADR figures.


All government departments pledged in 2001 to consider ADR in all suitable cases where the other party accepts it.