A new report from the UK’s National Audit Office (NAO), published on 17 October 2025, focuses on the cost of clinical negligence. It also highlights how, with earlier transparency and an honest Duty of Candour, timely and effective changes could be made which would impact and support both patients and the NHS. We must never lose sight of the human impact and support that everyone needs when tragic events and mistakes do occur.
Key findings
- Rising costs: Clinical negligence, when a patient is harmed because the healthcare provider breached a legal duty of care, is costing the NHS more by way of damages and costs every year.
- Fewer claims, higher payouts: Although the number of claims has levelled off in many areas, the cost per claim, especially for very high ones (over £1 million), is rising sharply.
- Legal costs outpacing damages: In lower-value claims (under £25,000), legal fees are often higher than the compensation award.
- Potential double payments: Some claimants may receive NHS-funded care after being compensated for future care costs, creating possible overlaps, though data on this is limited.
Drivers of rising costs
1. Higher damages: Inflation, more complex cases, and higher compensation amounts are resulting in increased costs.
2. Legal and claimant costs: Especially for small claims, legal costs are growing faster than the damages awarded as each case still requires a careful investigation, which is led by the patient.
3. Systemic trends: More high-value claims, delays, complexity in proving harm, plus general pressures on the healthcare system areall contribute to increasing liabilities.
What the report urges
- Faster resolution of claims and avoiding litigation where possible, to cut both financial and emotional costs. This has been proactively engaged with, and cultural change is ongoing so that early answers can be provided to support families and clinicians.
- More focus on reducing clinical negligence events through better patient safety, earlier detection of risk and prevention of harm, as cost-cutting side can only go so far.
What this means in practice
For NHS policymakers, the report serves as a warning. Without sustained efforts to prevent negligence, improve safety, and streamline claims, costs will continue to rise. This would also mean losing valuable opportunities to learn and raise standards.
For patients, there is a dual concern: securing compensation to support rehabilitation is paramount. It needs to be alongside openness to understand and respond when mistakes do take place, so that they can be prevented as early as possible.
How Tees can help
At Tees, our medical negligence solicitors specialise in helping patients and families understand their rights after something has gone wrong with medical treatment. We focus on clear, straightforward advice, explaining whether there may be a claim, what evidence is needed, and what steps to take next.
We also work with healthcare providers and insurers to help resolve claims efficiently and fairly, reducing uncertainty and stress on both sides.
Our experience covers the full range of medical negligence claims, from birth injuries and surgical errors to misdiagnosis and delayed treatment. We combine our legal expertise with a genuine interest in achieving better outcomes for patients and improving safety standards across the sector.
Talk to our experts
If you believe you or a loved one has been affected by medical negligence, our specialist team will help you understand your options.
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