Compensation claims against public sector services are crippling the NHS and schools, warned former Cabinet minister Stephen Byers.
Byers said Britain’s growing compensation culture was only benefiting lawyers and accident management firms.
According to a report, figures show claims made against schools have risen to £200m a year, enough to pay for 8,000 new teachers. Similarly, NHS medical error claims have soared from £1m in 1974 to £477m in 2003, equal to 22,700 extra nurses.
Byers, the backbench MP for North Tyneside, said something was badly wrong when legal action so badly hits “good quality schools and decent healthcare”.
“Money is being taken away from saving lives and educating our children to pay for a compensation system in which the real beneficiaries are the lawyers and accident management companies,” said Byers.
The MP is to propose “no fault” compensation schemes for the health service and schools at a conference in Birmingham.
He is expected to suggest the initiative would set financial limits to settlements or introduce a “social contract” in place of financial settlement, revealed a report.
Byers will say: “Perhaps a new system avoiding the legal process but one which provides lifelong care and assistance when appropriate without fault needing to be proven.
“This could be alongside an effective public complaints procedure and disciplinary action against staff if necessary.
Byers will also call for greater control over advertisements that make misleading claims to accident sufferers.
“There has been little public debate about the growth in this blame, claim and gain culture. Yet the consequences for our society are dramatic.
“We see it with playground equipment being fenced off; hanging baskets being taken down as a health hazard; teachers being advised to no longer supervise school outings.
“For the well-being of our society this is a state of mind that must change.”
