Clinical Negligence Legal Costs Statistics

Clinical negligence claims represent a substantial financial cost to the NHS in England, with billions of pounds paid each year in compensation and associated clinical negligence legal costs.

But how much is actually spent on legal costs? How much goes towards claimant legal costs compared with NHS defence costs? And how have those figures changed?

ARC Costs has analysed the latest published NHS Resolution and government data to provide an overview of clinical negligence legal costs statistics in 2026.

The latest complete annual payment figures available cover the 2024/25 financial year. They show that approximately £3.08 billion was paid across clinical negligence claims during the year, including damages and legal costs.

Key clinical negligence costs statistics

The latest figures show:

• £3.079 billion was paid across clinical negligence claims in 2024/25.

• £2.279 billion was paid in damages.

• £621.1 million was paid in claimant legal costs.

• £178.5 million was paid in NHS legal costs.

• Combined claimant and NHS legal costs therefore amounted to approximately £799.6 million.

• Claimant legal costs increased by approximately 43% between 2020/21 and 2024/25.

• For clinical claims worth up to £25,000, average claimant legal costs reached £27,380 in 2024/25.

• For claims worth £25,001 to £100,000, average claimant legal costs were £55,767.

These figures illustrate both the overall financial scale of clinical negligence claims and the significance of legal costs within the system.

How much does the NHS spend on clinical negligence legal costs?

Government figures show that approximately £799.6 million was paid in claimant and NHS legal costs during 2024/25.

The breakdown was:

Claimant legal costs were therefore more than three times the NHS’s own legal costs during the year.

This does not mean those costs relate exclusively to claims started and concluded during 2024/25. The government data includes payments made during the relevant financial year relating to claims that were both open and closed at the end of that year.

That distinction is important when interpreting clinical negligence statistics.

How have clinical negligence legal costs changed?

The five-year figures demonstrate a clear upward trend.

Between 2020/21 and 2024/25, claimant legal costs increased by approximately 43.5%.

NHS legal costs increased by approximately 19.2% over the same period.

Damages increased from approximately £1.588 billion to £2.279 billion, while total clinical negligence payments increased from approximately £2.171 billion to £3.079 billion.

The government has described the rising cost of clinical negligence claims as a significant concern and reported that overall costs have more than doubled over the last decade.

Claimant legal costs have risen particularly quickly

The increase in claimant legal costs has accelerated in recent years.

Government data shows claimant legal costs increasing from £489.7 million in 2022/23 to £544.8 million in 2023/24 and £621.1 million in 2024/25.

That means the annual amount increased by around £131 million in just two years.

However, headline increases should always be considered in context. Changes in the number, value and complexity of claims being resolved can affect the overall amount paid in any particular year.

Why are lower-value clinical negligence claims particularly interesting?

The relationship between damages and legal costs becomes particularly striking when lower-value claims are examined.

For clinical negligence claims with damages of up to £25,000, NHS Resolution reported average claimant legal costs of:

This means that in 2024/25, the average claimant legal costs for claims within this category exceeded the £25,000 upper damages limit of the category itself.

Average costs have also increased noticeably since 2019/20, when the equivalent figure was £20,322.

This is likely to be one of the most useful clinical negligence legal costs statistics for journalists and commentators examining the economics of lower-value claims.

What about claims worth £25,000 to £100,000?

Legal costs are also significant in the next damages band.

For clinical claims where damages were between £25,001 and £100,000, average claimant legal costs were £55,767 in 2024/25, compared with £54,978 the previous year.

Interestingly, the longer-term trend has not been a simple year-on-year increase.

Average claimant legal costs for this group were £59,251 in 2015/16. They subsequently fell to £48,371 in 2020/21 before increasing again.

This illustrates why headline statements about rising legal costs need to be considered alongside claim values, complexity and the mix of cases being resolved.

Why can clinical negligence claims generate substantial legal costs?

Clinical negligence litigation can be particularly complex.

Establishing whether treatment was negligent is only part of the process. Claimants may also require expert evidence addressing causation, condition and prognosis, care, accommodation, occupational therapy and other issues.

High-value claims can consequently involve several expert witnesses, extensive medical records, counsel and substantial solicitor time.

From a legal costs perspective, this can create disputes about hourly rates, expert fees, time spent, costs budgets and whether individual items were reasonably incurred and proportionate.

The size of the damages award alone does not therefore explain the costs of pursuing a clinical negligence claim.

What do the statistics tell us?

The figures demonstrate that clinical negligence legal costs are significant and have increased considerably.

Claimant legal costs alone increased from approximately £432.9 million in 2020/21 to £621.1 million in 2024/25.

However, the data also shows why the debate cannot simply be reduced to the headline amount spent on lawyers.

The claims being resolved change from year to year, particularly in terms of value and complexity. High-value catastrophic injury claims can involve substantial legal work on both sides.

At the same time, the figures for lower-value cases raise legitimate questions about the relationship between damages and the cost of resolving claims.

For costs practitioners, this makes effective costs management, realistic budgeting and early resolution increasingly important.

How ARC Costs can help

ARC Costs has extensive experience dealing with legal costs arising from clinical negligence litigation.

We assist receiving parties with Bills of Costs, costs budgeting, Points of Reply, negotiations and detailed assessment proceedings.

We also act for paying parties, reviewing substantial clinical negligence Bills and preparing Points of Dispute where costs are challenged.

Clinical negligence claims can involve some of the most complex costs issues encountered in civil litigation. Specialist costs input can help ensure that claims are accurately prepared, properly evidenced and resolved as efficiently as possible.

Data sources and methodology

This article uses published data from NHS Resolution and the UK Government. The latest complete annual payment data available when this article was prepared covers the 2024/25 financial year.

Sources:

UK Parliament – Cost of clinical negligence claims to the NHS, 2020/21 to 2024/25
https://questions-statements.parliament.uk/written-questions/detail/2026-05-13/hl48

This dataset provides the five-year figures used above for damages, NHS legal costs, claimant legal costs and total payments.

NHS Resolution – Annual Report and Accounts 2024/25
https://resolution.nhs.uk/wp-content/uploads/2025/07/E03358428-NHS-Resolution-ARA-24-25-Web-accessible.pdf

This report provides the figures for average claimant legal costs by damages band, including the £27,380 average for claims worth up to £25,000 and £55,767 for claims worth £25,001 to £100,000.

Percentage changes quoted by ARC Costs have been calculated from the published figures and rounded where appropriate.

Figures may differ slightly between official publications because of reporting methodology, timing and whether data relates to payments made or claims closed.

Journalists and researchers: Statistics and calculations from this analysis may be quoted with attribution and a link to ARC Costs.

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