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Medical Negligence Costs And Funding

Will the Legal Aid reforms make it harder for medical negligence victims to claim?

The Government’s plans to reduce public litigation bills by £350 million per year could have drastic effects on a large portion of the population, according to the Legal Action Group. They argue that around half a million people will lose access to justice per year - sentiments that are echoed by the NHS and the Law Society. The reforms, which are likely to be passed later this year, include the removal of funds for a number of cases including divorce, child maintenance, welfare cases and, worryingly, medical negligence.

The Effects of Reform

One of the loudest voices in the argument against the Legal Aid reforms has, surprisingly, been the charity, Action against Medical Accidents (AMA). The NHS has been paying out compensation payments in excess of £1billion each year as the result of an increasing number of medical negligence cases. The AMA argues that withdrawing a patient’s capacity to seek recompense through the courts not only deprives the individual of potentially vital compensation, but also deprives the NHS of valuable opportunities to discover just where mistakes are made. Without the data provided by medical negligence claims the AMA argue that the NHS could be lulled into a false sense of security and actually deliver sub-standard services without realising it.

Kenneth Clarke’s argument is that by removing funding, it would also remove the number of speculative and fraudulent claims that clog up the legal system. In addition, he has proposed a motion where successful claimants pay their legal fees from the compensation they have been awarded. The motion proposes that 25% of a claimant’s compensation would be used to pay his or her solicitor. Detractors of this argue that, in some cases, every penny can be vital towards maintaining a victim’s health or quality of life long after the case is closed and that a percentage of this size could leave them unable to afford to pay for essential treatment.

Solicitors and personal injury specialists oppose the motion on the grounds that victims with valid claims may not proceed because of the worry about the liability of legal costs - especially in the light of Mr Clarke’s announcement that he aims to remove the practice of taking out insurance policies to cover court costs in the event of losing a case.

Who Can Receive Aid?

Under the current system, adults with disposable assets of less than £8,000 can apply for Legal Aid. As part of the reforms, Mr Clarke aims to reduce that figure to £1,000. This means that those who previously fell within the bracket to receive Legal Aid will no longer do so - a figure that the Law Society estimates at around 500,000. Interestingly, the Law Society claims to have developed plans that would save the same amount in legal bills, but promises to continue to allow access to Legal Aid for those who need it. According to Mark Stobbs of the Law Society, those plans have simply been “ignored” and he warns that: “victims will get less for their injuries. The insurance companies will make extra profits and there's no example of insurance companies reducing their premiums.”

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FREE GUIDE - 7 Questions You Must Ask Before Choosing Your Medical Negligence Solicitor

If you believe you have been the victim of an act of medical or clinical negligence you need our free guide which answers all of the questions that you need answers to before deciding to make a claim, including:

• What are the costs of making a claim for compensation
• The reasons you should or should not make a claim, including protecting other patients
• Whether using a solicitor or a claims company will make a difference to the success of your claim
• The questions you must ask to ensure you choose the right person to help you with your claim

Before you take any further action, take five minutes to read our free guide so that when you do pick up the telephone or fill in an online enquiry form, you know exactly the questions you need to ask to find the right medical negligence claim solicitor for you.

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