— H ■a I E Non-clinical 3 Z claims 0 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Notification year 1The data for previous years has been restated and now includes a change to the 2013/14 data for 153 DHSC non-clinical claims which were incorrectly excluded as legacy industrial disease claims. In 2020/21 an additional 722 ELSGP clinical claims have now been included which were omitted in error in the 2020/21 Annual report and accounts. 2 The data for previous years has been restated for historical claims received under our ELSGP. Cases closed in-year may have had damages settled in previous financial years with costs negotiated following payment of the damages. Not all of the claims closed this year would have been settled in the same financial year. The nature of claims closed with or without damages will depend upon the portfolio of claims at any given period of time.]]> . n a. s c 0 i O ' % s < c 1000 £1,775.3m £1,609.8m (74*) v (73%) 500 0 2020/21 2021/22 ■ NHS legal costs ■ Claimant legal costs ■ Damages paid to claimants Payments Payments against all our clinical schemes for 2021/22 Payments made on the DHSC clinical scheme (2020/21) were £2,402.9 million (£2,209.3 million) in increased to £82.8 million in 2021/22 (£61.6 million total - which comprised damages paid to claimants in 2020/21). A number of high value claims fell of £1,775.3 million (£1,609.8 million), claimant legal due for settlement in this year, as expected. costs of £471 million (£448.1 million) and NHS legal Payments made on behalf of GPI increased: costs of £156.6 million (£151.4 million). The increase in £85.0 million in 2021/22 (£62.4 million), reflecting NHS legal costs can be in part attributed to increased the continuing maturing of our GPI claims book. spending on the general practice indemnity schemes, mainly ELSGP, since the migration of the claims Payments for our Existing Liabilities Scheme and previously managed by MPS (+£8.1 million/161 %). Ex-Regional Health Authority Scheme decreased to £21.2 million in 2021/21 (£24.3 million). Payments on CNST claims increased by £152.8 million (7%) to £2,213.9 million from 2020/21. This increase was primarily in damages and claimant legal costs payments against high value (more than £3.5 million) claims.]]>- r a. A ) 30 & O ' £32.Om (57*) T 20 £28.5m (56%) 10 0 2020721 2021/22 ■ NHS legal costs ■ Claimant legal costs ■ Damages paid to claimants Payments against all our non-clinical schemes totalled £55.7 million in 2021/22 (£50.7 million) -which comprised damages paid to claimants of £32.0 million (£28.5 million), claimant legal costs of £17.4 million (£16.3 million) and our legal costs of £6.3 million (£5.9 million). Figure 13: Payments on clinical claims by financial year from 2013/14 to 2021/22 for our CNST o 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Financial year]]>75% Not met Voluntary turnover of staff during 35 All <15% Not met six-month probationary period Finance and Prompt payment of suppliers 36 Corporate 95% Not met within 30 days Planning]]>t 1year) pa) (if 5%) change in life onwards) expectancy) H Increase in assumption ■ Decrease in assumption The sensitivities around these key assumptions This year, there was a significant reduction in the long are explained earlier in this note. term and very long term discount rates prescribed by HM Treasury, which increased the provision significantly. Sensitivity to changes in the This is because a large proportion (by value) of the nominal discount rate IBNR provisions are expected to be paid in more Figure 33 is based on adjusting the nominal discount than ten years' time and the long term discount rate by the increments shown. A change in the nominal rate hasn't changed since last year. interest rate of +1 % would represent short, medium, long term and very long term nominal interest rates of 1.47%, 1.70%,1.95% and 1.66% respectively. As a result of the range of the increments analysed (and, for example, the long term nominal interest rate of 1.99%), results to the left of the graph imply a negative nominal discount rate.]]> s. 0c z C3 3 -2 -1 +0 +1 +2 +3 Change in nominal discount rate (%) Sensitivity to differential between ASHE and CPI The ASHE index, used in the calculation of damages in PPO cases where care costs are a component, measures the rate of change in the wages of carers. The current assumption is that the rate of inflation in carers' wages is 1.75% higher than CPI price inflation each year. The graph shows the effect on the value of the CNST IBNR provision where this differential is varied and, as the following chart shows, this is a non-linear relationship. An additional +/- 0.5% difference between ASHE and CPI will either increase the provision by 8% or reduce it by 7% respectively. Figure 34: Sensitivity to differential between ASHE and CPI]]>