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MDDUS comment on the NAO’s cost of clinical negligence report

Author: MDDUS | Date: 17 October 2025

MDDUS comment on the NAO’s cost of clinical negligence report image

At a glance:

  • MDDUS has urged the UK Government to urgently reform the clinical negligence system after the NAO revealed liabilities have reached £60 billion.
  • The organisation says political inaction has allowed costs to spiral, harming NHS patients, staff and taxpayers.
  • MDDUS is calling for immediate action on fixed recoverable costs, legal reform and a rapid response to David Lock KC’s review.

MDDUS has called on the UK Government to act as a matter of urgency to reform the clinical negligence system, after a new report by the National Audit Office (NAO) revealed liabilities have reached £60 billion – the second largest on the government’s balance sheet.

Chris Kenny, Chief Executive of MDDUS, said: “Politicians of all parties have been remiss in not addressing the issue of excessive clinical negligence costs that have been painted in stark, but realistic, terms today by the National Audit Office.

“NHS patients and staff – to say nothing of the general taxpayer – are suffering because of this dereliction of duty.

“The government needs to implement the now nine-year old plans for a fixed recoverable cost limit for cases worth less than £25,000 immediately and set out a glidepath for it to move us to cases worth £150,000 over the next two years.

“Ministers must also now commit to the repeal of the absurd directions in Section 2(4) of the Law Reform (Personal Injuries) Act 1948, which requires courts to disregard the existence of the NHS when paying clinical negligence compensation, and instead calculate costs on payments to private healthcare.

“Finally, we are looking to the government to act on David Lock KC’s review of clinical negligence with urgency and to respond to his proposals within a month of receipt, seeking to apply lessons from other jurisdictions.

“Quite frankly, there has never been a better time for action.”


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