Page 177 - Pharmacy Appeals 1/4/04 to 31/3/05

NHS Resolution Annual report and accounts 2021/22 153

8. Contingent liabilities

Ex-RHA ELS CNST DHSC ELGP ELSGP
clinical

£ 0 0 0 £ 0 0 0 £ 0 0 0 £ 0 0 0 £ 0 0 0 £ 0 0 0
Contingent liability as at 31 March 2022

0 446,084 70,798,022 939,759 0 670,183

Restated1contingent liability as at 31 March 2021
14,000 348,643 44,302,315 735,414 602,000 392,119

CNSGP CNSC DHSC CTIS PES LTPS Total
non-clinical

£ 0 0 0 £ 0 0 0 £ 0 0 0 £ 0 0 0 £ 0 0 0 £ 0 0 0 £ 0 0 0
Contingent liability as at 31 March 2022

462,758 54,077 108,543 2,000 9,181 177,015 73,664,622

Restated contingent liability as at 31 March 2021

721,938 43,000 95,522 1 , 0 0 0 5,819 210,267 47,472,037

NHS Resolution makes a provision in its accounts As a result of the dissolution of NHS primary care trusts

for the likely value of future claims payments and and strategic health authorities (on 1 April 2013), NHS
records contingent liabilities that represent possible Resolution has taken on responsibility for any outstanding
claims payments additional to those already provided criminal liabilities, on behalf of the Secretary of State
for. These amounts are not included in the accounts, for Health and Social Care. Any valid claims arising
but shown as a Note to the financial statements from the activities of those organisations will be dealt
because a transfer of economic benefit through with by NHS Resolution and funded in full by DHSC.
the payment of damages is not deemed likely.
We have not determined a separate and
The contingent liability represents an estimation of the additional contingent liability for Covid-19 risks
additional provision NHS Resolution would recognise in because we have included explicit provisions
its accounts if damage payments were awarded on all for the material and quantifiable risks.
claims, rather than taking into account the probability
of damages being paid (i.e. reflecting that typically
many claims settle at nil). The known claims provision
is calculated as the sum of outstanding reserve values
(i.e. total claim value less payments) multiplied by
the probability of damages being paid, inflated and
discounted to provide a present value of the claim based
on the expected settlement dates. The IBNR provisions
calculation also includes probabilities of a claim being
paid for each of the schemes. The contingent liability
is then the difference between the total valuation
of IBNR and known claims (including estimations on
claims which are ultimately expected to settle at nil)
and the main valuation of known claims and IBNR
(which excludes claims expected to settle at nil).

The balance at 31 March 2021 for the CNST scheme has been increased by £1,392 million to reflect a prior period adjustment
for 2020/21 in respect of the revaluation of the known claims provision. See Note 7.4 for further details of the revaluation.