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Early days progress report to 31 December 1999

  • Last modified date:
    3 February 2004

The new scheme to centralise the collection of NHS charges from insurance companies following certain road traffic accidents has now been operational for nine months.

Since the Compensation Recovery Unit (a part of the Department of Social Security's Benefits Agency) began recovering the charges on behalf of the Secretary of State for Health notification has been received of more than a quarter of a million (256,144) new claims for compensation following a road traffic accident. Around half of these claims have involved the injured person receiving examination or treatment at an NHS hospital.

Since April 1999 the new scheme has resulted in the identification of an estimated £73 million potential income for NHS trusts in England, Scotland and Wales. The income will be released as and when the underlying claims for compensation are settled.

Technical difficulties encountered at the beginning of the new scheme meant that NHS trusts shared only £2.8 million pounds in the first six months of the financial year. The third quarter has however seen a major improvement in the performance of the new system and trusts have shared nearly £14 million pounds in the last three months. (£3.7m at the end of October, £5.7m at the end of November and £4.4m at the end of the shorter working month of December).

A further report will be published at the end of the financial year.

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