Doctors’ representatives in clinical negligence cases have claimed that average costs far outstrip the compensation secured for cases worth less than £25,000.

New figures published by the Medical Defence Union suggest that in 2021 the average sum paid in claimant legal costs on medical claims settled for up to £10,000 was around £18,500.

For claims settled between £10,000 and £25,000, claimant costs were on average almost £35,000.

The figures are intended to provide fresh impetus to the government to impose fixed costs on clinical negligence claims worth up to £25,000. Consultation finished in April on proposals for fixed recoverable costs and a new streamlined process for claims.

Claimant lawyers oppose such changes, suggesting that fixed costs set too low would prevent them running cases and leave thousands of injured people without legal representation.

But the MDU insists its figures are proof that the government should act urgently to impose costs restrictions and ease the burden on the NHS. Indeed, the group advocates going further and has encouraged ministers to look next year at applying fixed costs to claims up to £250,000.

Dr Matthew Lee, chief executive of the MDU, said: ‘Disproportionate legal costs are one of several defects in the current litigation system and particularly affect lower value claims. It cannot be right for legal costs paid to claimants’ lawyers to regularly exceed the damages paid to claimants by double or triple the amount.

‘The NHS is also facing disproportionate costs which put a strain on public finances.’

The NHS Resolution annual report for 2021/22, published last month, showed that claimant costs for clinical scheme increased by 5% to £470.9m, while defence costs rose by 3.4% to £156.6m. The biggest driver of the increase in costs continued to be damages payments to claimants, which rose by 10.3% to £1.8bn.

Meanwhile, the MDU has responded to criticism from the claimant sector that defence lawyers are responsible for inflating costs because they are not willing to admit fault and settle cases early.

Chair Paul Riordan-Eva said: ‘At the MDU, we will never settle a claim involving a member for the sake of financial expediency. We successfully defend the majority of claims we receive and understand the need to protect members’ reputations. During 2021, we closed 85% of medical claims without a payment of damages.

‘But the fact remains that the current system is time-consuming and stressful for claimants and defendants alike and enormously costly to the NHS at a time when every penny counts.’

 

This article is now closed for comment.