Page 84 - Pharmacy Appeals 1/4/04 to 31/3/05

60 Performance analysis

The Early Notification Scheme within CNST is still very The budget for GPI schemes was set during the
much in its early stages of development. The scheme financial year on the basis of a run rate for expenditure
proactively investigates specific brain injuries at birth for for the first half of the financial year. However, the
the purposes of determining if negligence has caused rate of expenditure on claims settlements increased
the harm. It usually takes on average until a child is aged unexpectedly in the second half of the year as claims
around 11 to understand the full extent of injury and were expedited. This overspend was contained within
the consequent level of care needed. However, as we the total level of financing that DHSC provides to
continue to refine and streamline the scheme, and by NHS Resolution for all of the schemes it funds.
targeting our investigations, this has resulted in an 8%
Very few claims have been received for the CNSC
reduction in NHS legal costs to £4 million on EN cases.
indemnity scheme set up as part of the response to
The value of damages payments on the EN Scheme
Covid-19. £28,000 has been spent on NHS legal costs,
has increased from £3.2 million in 2020/21 to £10.2
with a further £236,000 spent on administration
million as the scheme aims to support families in real
costs (including corporate overhead costs).
time. Claimant legal costs have also increased from £0.4
million to £1.9 million as claims are now progressing.
Expenditure on DHSC and GPI schemes also increased
year on year. A number of high value claims settled
against the DHSC clinical scheme in 2021/22 as
expected, driving the increase in spending.

Table 8: Non-clinical schemes financial performance

2021/22 2020/21

Non-clinical scheme Income / Expenditure Under/ Percentage Expenditure
budget (over)spend under/
(£ million) (£ million) (£ million) (over)spend (£ million)

Member funded - LTPS 57 49 8 14% 45
Member funded - PES 9 4 5 51% 3
DHSC funded scheme 7 7 0 4% 7

CTIS 0 0 0 0% 0

Total non-clinical schemes 73 61 13 17% 56

Expenditure on LTPS has increased by £4 million (9%) NHS Resolution also has a budget for Annually
compared to last year and by £2 million (5%) compared Managed Expenditure. This is to cover expenditure
with 2019/20. Despite this increase in expenditure on volatile or difficult-to-manage budget
we still experienced an £8 million (14%) underspend items, and is set on an annual basis.
against the LTPS collect which was set in the summer of
NHS Resolution's AME is in respect of the net movement
2020. The year-on-year increase in payments is across
in provisions for all of the indemnity schemes, i.e. the
all elements of the budget, with the biggest increase
change in the provision less any provisions settled in
in damages spend (£3.6 million). The overall increase
the year. Performance against budget is forecast in line
in payments year on year has been mainly driven by a
with the Parliamentary timetable, but this is before the
£3.5 million increase in spend on high-value claims.
work on setting the key assumptions from observed
Expenditure on PES is volatile and it is difficult to predict experience has commenced. Prudent estimates in relation
due to the nature of claims received under this scheme. to key potential variables are therefore used to inform
the budget, in discussion with DHSC and HM Treasury.
No claims have been received for the Coronavirus
Temporary Indemnity Scheme (CTIS), and
£79,000 has been spent on administration
(including corporate overhead costs).