Responding to the chancellor of the exchequer's statement, Tom Reynolds, director of policy and communications at the Medical Defence Union (MDU), said:
"The spring statement lays bare the significant financial challenges facing the public purse. While the government's focus in on efficiency, there is an urgent need to invest in frontline NHS health and social care services. That is why the government must not shy away from bold reforms that could allow for the more efficient use of existing budgets.
"The MDU is acutely aware of the strains on NHS finances and has long campaigned for reform of the law surrounding clinical negligence costs, which could free up hundreds of millions of pounds every year to be spent on recruiting staff, improving working conditions and patient care and tackling waiting lists.
"We are calling for urgent action by the government to reform the disproportionate legal costs awarded in lower value clinical negligence claims as we regularly see legal costs eclipse the amount of compensation awarded to a patient. There needs to be a prompt introduction of fixed recoverable costs in clinical negligence claims of up to £25,000, followed by a commitment to extend that regime to claims valued up to £250,000.
"There is a vital need to repeal S2(4) of the Law Reform (Personal Injuries) Act 1948, requiring the courts to disregard the existence of the NHS when making a compensation award, and instead doing so on the basis of the cost of private care.
"These are just some of many reforms the system is crying out for. By addressing these unsustainable costs, the government will be able to redirect much needed funds to frontline NHS services. It is time to get on and do it."
This page was correct at publication on 26/03/2025. Any guidance is intended as general guidance for members only. If you are a member and need specific advice relating to your own circumstances, please contact one of our advisers.