New Rules Bump Up NHS Injury Cost Recovery Charges

Starting from October 1, 2025, those who compensate individuals for personal injuries leading to NHS treatment will face higher charges. The updated regulations, announced by the Department of Health and Social Care, aim to adjust the recoverable costs under the NHS Injury Cost Recovery Scheme in line with inflation.

Key Changes:

• Ambulance Services: Charges will rise from £256 to £267.
• Outpatient Hospital Treatment: Costs increase from £848 to £883.
• Inpatient Hospital Treatment: Charges jump from £1,042 to £1,085.
• Maximum Recoverable Amount: The cap on charges per injury will go up from £62,272 to £64,856.

The anticipated £7.8 million annual boost in NHS income reflects inflation adjustments, ensuring the real-terms value remains constant. The changes apply to injuries occurring in England and Wales and follow a 2006 consultation supporting automatic annual charge adjustments in line with hospital and community health services inflation.

Background Context: Charging for NHS treatment of road traffic accident victims has been in place for over 70 years, modernized by the Road Traffic (NHS Charges) Act 1999. These regulations extend the recovery process to all personal injury cases requiring NHS care, a move supported by a majority during a 1996 Law Commission consultation.

Business Impact: The changes are expected to have minimal impact on businesses, charities, and voluntary organizations, with most costs absorbed by insurers. Any potential increase in insurance premiums is likely to be negligible, estimated at around 15 pence per motor insurance policy annually.

Monitoring and Review: The tariff adjustments will undergo periodic reviews, ensuring they remain aligned with the latest healthcare inflation data. The adjustments are scheduled to coincide with the next Common Commencement Date, with the instrument laid before Parliament on September 1, 2025, ensuring ample time for parliamentary scrutiny.