NHS Redress Bill [Lords]


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Andy Burnham: Again, that is a good question. I do not have the figures directly to hand, but maybe help will come soon. We anticipate an increase in the number of cases, as we have clearly said. One of the main attractions of the scheme to me is that it opens up the possibility of redress to people who at present might not even initiate proceedings or, were proceedings initiated, would not think that they had the will and the wherewithal to see them through to the bitter end, which is often a long time down the path. I have in mind those of our constituents who are less articulate or less wealthy, and the scheme opens up the possibility of more cases coming forward. My predecessor said that we were relaxed about that, and that is the right way to put it. Part of the logic is to spend less on the wasteful costs of pursuing cases all the way when 43 per cent. are abandoned out of court, and to channel the cost of those out-of-court settlements earlier to provide a scheme that provides something for a lot more people. That is the nub of the point and the hon. Gentleman is right to raise it.
Mr. Stuart: Might I press the Minister on that point? He said that he would welcome many more cases. Can he give us some idea of the quantum? If the number of cases increase tenfold, that would be a lot more people whom the scheme and managers of the trusts recognise as having a problem. Would that be a good thing? To clarify, part of the reason for the programme is to reduce legal costs. Could he be specific about whether he expects the costs to reduce in overall quantum or that a lower amount of the overall amount spent on redress in the NHS will go on them? If the Minister is right and there is, to use my hypothetical number, a tenfold increase in the number of cases, would he not accept that the legal costs to the NHS will rise greatly, even if they reduce on each individual case? That has the potential to have a serious financial impact on the NHS, so it would be appropriate if the Minister could give us a clearer view of what the Government expect.
Andy Burnham: Help has arrived, I am pleased to say. The modelling of patient survey data carried out by the Department suggests that an improved scheme of this kind might see claims rise by anything from 2,200 to 19,500 a year. I accept that that is a broad range, but the number could increase significantly. We expect between 5,800 and 16,600 cases to be covered by the scheme in year one. It is impossible to say how many will come forward, and it would be wrong to say that there will be a certain number—who is to say what will be an accurate judgment?—so we have given a range of cases, and a range of the costs that that is likely to produce.
The point that I was going to make to the hon. Member for Ruislip-Northwood was that the scheme will be reviewed after three years, at which time we will want to see how many extra cases have come forward and how much extra has been spent on legal costs. If the scheme is conducted in the intended spirit, it should not be necessary to incur legal costs in the early stages of the process. It should be possible for such costs to be seriously reduced. That is an important aspect of the scheme.
Mr. Stuart: I welcome the Minister’s explanation. I believe that he said in an earlier sitting that trusts will be expected to initiate their own investigations in cases in which they feel that something has gone wrong. I wonder again about the idea of a quantum if the NHS changes, ceases to be defensive and automatically investigates untoward incidents. Given that I have heard from other sources that there is the potential for hundreds of thousands of such cases to happen in a year—something might go wrong at some level in one in 20 of all operations in hospitals—that could be an enormous open-ended commitment. Can the Minister comment on that? How often does he anticipate trusts triggering investigations in cases that, at the moment, they would tend to close down unless the patient were particularly insistent?
Andy Burnham: In response to a parliamentary question, I made available the numbers of clinical negligence cases trust by trust. I shall make sure that the hon. Gentleman has that information, because it will probably answer his question. To answer the broader point, we are attempting to make a serious culture change. I shall not name them, but I have seen instances in the public sector in which, because of a culture of inability to own up to mistakes, cases have been put into the legal process—letting them grind, grind away and elongate—as a way of putting off an uncomfortable situation. That has often been used as a way of managing problems but it can, clearly, be very wasteful of public resources; authorities can end up paying more than they would have done otherwise. As I said to the hon. Member for Billericay, I do not think that most people are motivated by a desire to take the system to the cleaners. However, because they do not get a proper response when they initiate something, they might take the process to the end point because they think, “They may learn the lesson if I win my case; then they won’t do it to somebody else.” They have been pushed into a very adversarial process. We are trying to do something different.
I do not think that there will be hundreds of thousands of new cases. The Department’s estimates suggest that we will make a saving on legal costs of up to £7.6 million a year. Bear in mind that we are talking about cases in which the claims are for less than £20,000, so we expect there to be a saving. However, the hon. Member for Beverley and Holderness (Mr. Stuart) is right that more cases could come forward. The Department’s modelling suggests that the NHS overall could go from a £7 million saving to a £48 million cost because of the scheme. It is likely that there will be a cost, given that we expect the scheme to work in the way that we want it to. I just do not know whether that cost will be as high as has been suggested.
9.45 am
Andy Burnham: The hon. Gentleman makes an important point, which has been raised with me by a constituent who is pursuing a long-running case in which his son died while under the care of a mental health trust. He explained to me that the case had been going for a long time, but might never get to court. What he said was new to me. He explained that often, at the end-point, there is a greater incentive to settle out of court than to take the case to court. Perhaps that is good in some ways, in that it saves the cost of court proceedings, so there will be some savings. However, it leaves the patient in an unsatisfactory position in that there are interests working against their interests at that point. Having reached that point, people want their day in court—or some do. They want to give voice to and vent the frustrations that they have felt during the process. When the case finally gets to court and they are told, “I think you should really settle out of court”, it is deeply unsatisfactory for patients all round. The hon. Gentleman is right to raise this point. If what my constituent has told me is the case, and there is good reason to think that it is, that is another unsatisfactory facet of the system. I would welcome political agreement that that should not be the case.
I want to pick up on an important point made by the hon. Member for Southport about legal aid. Obviously, if redress is not possible under the scheme, people will retain their rights to go through the courts. It will be possible for some patients in that position to apply for legal aid in the same way as now—the Legal Services Commission makes decisions on a case-by-case basis on whether to award funding, as not everyone is eligible.
In “Making Amends”, the chief medical officer recommended that the LSC should be able to take into account whether someone had used the NHS redress scheme when making a decision on an application for legal aid. We support that recommendation, as do the Department for Constitutional Affairs and the LSC, because it supports the overall aims of legal aid by ensuring that funding is awarded in the right cases and that people are expected to explore other ways of getting redress before turning to the courts. There will be no blanket ban on legal aid for clinical negligence cases, and decisions will continue to be made on a case-by-case basis. It is reasonable for the guardians of the funds to consider whether the redress scheme was used and what conclusion it reached.
Dr. Pugh: The Minister is confirming what I thought. If somebody has no confidence in the NHS redress scheme and decides that they wish to go to court because of what they have heard about the scheme, and they require legal aid, their situation is technically worse, in legal terms, is it not?
Andy Burnham: I do not believe so, because they will have gone through the NHS redress process and benefited considerably from doing so, through the disclosure of information and the investigation of the facts. If there is a genuine grievance, the process will apply as it does now. Deserving cases will be taken forward, and there is no bar to that happening. However, given that we want a test of whether a case is meritorious or has potential to go forward, it is entirely reasonable for those making the decisions to consider what happened under the NHS redress scheme.
Dr. Pugh: If there were a complaints procedure, as there currently is in most hospitals, but somebody decided to sidestep it in order to take a case to court and then sought legal aid, would those considering the case for legal aid ask them to go back and consider the hospital’s complaints procedure first, before moving forward?
Andy Burnham: I might have to write to the hon. Gentleman on some of the details, but I understand that, under the principles of the current system, people will want to see evidence that attempts have been made at resolution before an application for legal aid is made. It is for the applicant to explain how they felt the system either did not represent their interests or was not fair to their case, which would then be relevant information for the awarders of legal aid to consider. I will come back with more detail for the hon. Gentleman on that, but the point of principle is that there should be no blanket ban on people applying for legal aid; indeed, quite the opposite.
Mr. Baron: Before the Minister concludes his remarks, may I return to an earlier exchange with my hon. Friend the Member for Eddisbury? The more we involve lawyers in the scheme, the more we replicate the court system, which the redress system is designed to replace. The Minister has agreed that the redress scheme does not determine rights, so why does he think that those rights need to be protected by lawyers?
Andy Burnham: As the hon. Gentleman has heard me say, we do not intend to replicate the current process via a Government scheme. It would be very odd to enshrine what is bad about the current system in a formal scheme. The purpose of the clause is to give the scheme member and the Litigation Authority the flexibility to move the scheme on in a particular case, and a mechanism that allows them to do that.
My point about rights is that the scheme is not judge and jury. A judge deals with somebody’s rights and dispenses with them, in the sense that he decides whether those rights are invoked and whether people can claim them. That is what happens in a legal process. However, we are saying that if the offer of redress is not accepted at the end of the NHS redress scheme, the legal right is not dispensed with. Making the scheme judge and jury would mean that the wall would come down and people would be left with nowhere else to go. However, they do have somewhere else to go.
Mr. Baron: I take that point, but if the redress scheme does not determine rights—the Minister has just agreed with that—why do they need to be protected by lawyers?
Andy Burnham: The scheme is an attempt to make a reasonable offer. It is an out-of-court, fast-track settlement system, not a legal process. We considered whether to apply a different test for eligibility, but to give clarity it was felt that the test in the end should be liability in tort. Therefore, to give clarity at the end of the scheme—whether or not the offer being made is comparable with what would have been achieved in the courts—there is a need to offer independent legal advice. As I said earlier, the aim is to import into the scheme an element of independent authority, so that people can move forward with confidence. The scheme is not designed to replicate the unfairnesses and weaknesses of the current system. It is to provide greater flexibility and confidence that the result that the scheme comes up with is a good one and one that people should accept. If the scheme did not have certainty at the end point, it might be doomed to failure, in that word would get out that people should not go down the NHS redress scheme route, because they would not get full redress under it. A guarantee of proper redress is needed, and this measure is intended to give patients confidence in that regard.
This has been quite a good debate. I am grateful to Opposition Members for the points that they have made. They have helped me to explain more of the Government’s intentions. I am sure that we shall return to these matters on Report. I do not believe that more felicitous wording, to use the words of the hon. Member for Eddisbury, is needed, but I do not set my face against that. I believe that the Bill as it stands is good. It gives us the flexibility to deal with cases properly but, as I said, I am sure that we shall return to these matters on Report, and I will reflect on them before then. In saying that, I ask the hon. Member for Billericay to withdraw the amendment.
Question put, That the amendment be made:—
The Committee divided: Ayes 5, Noes 9.
 
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