Laura Sharman 21 January 2016

Councils paid out £100m in compensation claims over past two years

Councils paid out more than £100m in compensation claims over the past two years, according to new research from the TaxPayers' Alliance (TPA).

The figures show that between 2013 and 2015, local authorities paid out 42,000 compensations claims at a cost of £104m.

According to the investigation, nearly £8m was paid out because of damage caused by potholes.

Jonathan Isaby, chief executive of the TPA, said: ‘Of course, some of the payments made by councils will be entirely justified, as the most serious accidents can change lives. But in many cases, local authorities and their staff will be failing to live up to the standards required of them by law or paying out on frivolous claims too easily.

‘Councils must do everything they can to ensure their mistakes and negligence don't result in such large bills for hard-pressed taxpayers - and take appropriate action against staff whose actions result in costly claims. We must also root out those who are playing the system with spurious demands for taxpayers' cash.’

However, council leaders said the amount paid out in compensation was less than 0.05% of all local authorities’ expenditure over the same time period.

A Local Government Association spokesperson said: ‘Compensation cases which do arise should be assessed by individual councils on a case by case basis and it is right that compensation is made available to people with genuine cases.

‘Councils are determined to crack down on spurious cases which are a waste of the public purse and threaten councils' ability to protect the services people value the most.’

Andrew Jepp, director of public sector at Zurich Municipal, said: 'Whilst this data does show that local councils have paid out large sums of money over the past two years, in our experience it is not the case that local authorities are a soft touch.

'Robust action is generally taken to defend against spurious or fraudulent claims. We in conjunction with our local authority customers have been at the forefront of pursuing legal action against fraudsters to send a tough message that fraud will not be tolerated."'

SIGN UP
For your free daily news bulletin
Highways jobs

Customer Payment Solutions Lead (Business Support) - EFDC

Essex County Council
Up to £15.0000 per hour
Customer Payment Solutions Lead (Business Support) - Epping Forest District Council 30 Hours per Week Part-Time, Temporary Up to 11 Month Contract£15 England, Essex
Recuriter: Essex County Council

Targeted Youth Advisor

Essex County Council
£28514.00 - £33545.00 per annum
Targeted Youth AdvisorPermanent, Full Time£28,514 to £33,545 per annumLocation
Recuriter: Essex County Council

Part Time Business Operations Assistant - ACL

Essex County Council
Up to £25081.00 per annum + Pro Rata
Part Time Business Operations Assistant - ACLPermanent, Part Time£25,081 per annumLocation
Recuriter: Essex County Council

Multi Therapy Assistant

London Borough of Richmond upon Thames and London Borough of Wandsworth
£35,391 - £42,888 per annum
Multi Therapy Assistant£35,391 - �... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Part Time Business Operations Assistant - ACL

Essex County Council
Up to £25081.00 per annum + Pro Rata
Part Time Business Operations Assistant - ACLPermanent, Part Time£25,081 per annum, full time equivalentLocation
Recuriter: Essex County Council
Linkedin Banner