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The recovery of NHS costs in all cases where personal injury compensation is paid postponement of commencement date

  • Last modified date:
    4 March 2005

The Department of Health had planned to commence the expanded scheme for recovery of NHS costs on 1 April 2005. This would allow recovery of NHS hospital costs in all cases where personal injury compensation is paid not just following road traffic accidents, for example following accidents at work.

The scheme will also allow the recovery of NHS ambulance service costs.  The provisions to allow this are contained in Part 3 of the Health and Social Care (Community Health and Standards) Act 2003. 

The 1 April 2005 commencement date was always dependent upon the successful laying of the regulations that deal with the scheme's detailed operational matters.  The Department undertook a public consultation on the draft regulations, which ran between 24 September 2004 and 17 December 2004.  There were a number of issues and concerns raised in response to the consultation from key stakeholders.  A full summary of outcome of this consultation will be placed on the Department of Health's website by the end of March 2005 at:  

The Department is still considering the detail of the responses but initial scrutiny has shown that there remain very high levels of concern about the planned timing for introducing the scheme, arguing that to implement it now would risk further damage to a still fragile employers' liability insurance market.  After further discussions with the Department for Work and Pensions (DWP), which is leading on a programme of work following a review of Employers' Liability Compulsory Insurance (ECLI), Ministers have decided now is indeed not the right time to introduce the expanded NHS cost recovery scheme. Therefore, it will not come into effect from 1 April as was previously planned. Rosie Winterton, the Health Minister with responsibility for the scheme confirmed this on 3 March 2005 in a written reply to a Parliamentary Question from Mr Chris Mole MP. This is not, however, an indefinite postponement and the expanded Scheme will be in place by October 2006.

The current scheme for recovery of NHS costs following road traffic accidents will continue to operate in the same way until the expansion is introduced. 

 

 

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