Laura Sharman 11 August 2014

‘Spurious’ compensation claims draining councils’ budgets, says LGA

Council leaders are warning that 'no-win no-fee’ compensation claims are threatening their ability to deliver vital public services.

The Local Government Association (LGA) is calling on the Government to crackdown on ‘opportunistic’ claims saying these compensation cases are taking money away from services such as education and road repairs.

Figures show that compensation claims related to the condition of roads last year cost councils £31.6m, the equivalent of fixing more than 600,000 potholes. Compensation claims for incidents in schools cost £2.7m last year, rising to £6m when legal fees were added.

Cllr Peter Fleming, chairman of the LGA's Improvement Board, said: ‘It is absolutely right that compensation is made available to people with genuine cases. But councils have feared for a long time that some lawyers are clogging up the system with spurious claims from people just chancing their arm.

‘The vast majority of lawyers do a commendable job. However, there is a small but significant minority of opportunistic lawyers leeching away money which would be much better spent improving our schools and fixing our roads. Some of the claims being made and fees being charged beggar belief.’

Cllr Fleming added that the while local authorities took their responsibility for public safety very seriously, lawyers tended to be the 'real winners’ of these cases. He added: ‘Government has already gone some way towards reforming no-win no-fee claims, but we need a further and fuller overhaul of the system to stop opportunistic lawyers lining their pockets at the public's expense.’

SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

Cumberland Council
£188,227
Cumberland is a special place Cumbria
Recuriter: Cumberland Council

Head of Operational Services

South Derbyshire District Council
Head of Operational Services
South Derbyshire District Council is seeking an ambitious and commercially minded Head of Operational Services Derbyshire
Recuriter: South Derbyshire District Council

Service Director – Property and Business Support Services

South Gloucestershire Council
£86,955 – £94,552 per annum
You’ll have a rare opportunity to influence how an entire council uses its assets Gloucestershire
Recuriter: South Gloucestershire Council

Assistant Director – Transformation & Commissioning

North Somerset Council
£90,249 – £107,028
North Somerset is ambitious, forward-thinking and committed to delivering high-quality, sustainable services for its communities. Somerset
Recuriter: North Somerset Council

Executive Director Housing and Communities

The Royal Borough of Kensington & Chelsea Council
£178,000
At Kensington & Chelsea, we are transforming services Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council
Linkedin Banner