Oral Answers to Questions

Debate between Iain Stewart and Helen Grant

Tuesday 18th September 2012 Commons Chamber

[Iain Stewart (Milton Keynes South) (Con)]

2. What recent progress he has made on changes to the arrangements for no win, no fee agreements.

[The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)]

The Government have made it a priority to reform the costs of civil litigation and, in particular, the no win, no fee conditional fee agreements. A package of major reforms is being implemented in April 2013, under the provisions of the Legal Aid, Sentencing and Punishment of Offenders Act 2012. I would also refer my hon. Friend to two written ministerial statements, dated 24 May and 17 July.

[Iain Stewart]

I warmly welcome the Minister to her new role. Will she give the House an estimate of the cost of the current no win, no fee arrangements to the NHS, and of the savings that might consequently be achieved by the changes?

[Mrs Grant]

Defendants such as the NHS were required to pay inflated success fees under the old regime, as well as after-the-event insurance premiums. In 2010-11, the NHS Litigation Authority paid £200 million to claimant lawyers. Under the new reforms, those costs will be reduced, allowing more money to be spent on patient care.