Question to the Department of Health and Social Care:

To ask the Secretary of State for Health, what recent assessment he has made of the effect on GPs' budgets of changes in the discount rate used to calculate medical negligence claims; and if he will make a statement.

The cost of indemnity to general practitioners (GPs) is already recognised as a business expense, and reflected in the sums received by GP practices via the GP contract. In recognition of the rising costs of indemnity, NHS England put an extra £30 million in to the GP contract in March 2017 to cover indemnity-related inflation for GPs from 2016-17. A further sum of approximately £30 million will be made available for April 2018.

On 27 February the former Lord Chancellor (Elizabeth Truss) announced a change in the personal injury (PIDR) discount rate. The Department is aware of the risks of indemnity subscription rises associated with this change and the potential consequences for GPs. This is why alongside the February announcement the Government committed to working closely with GPs and the Medical Defence Organisations (MDOs) to ensure that appropriate funding is provided to meet the additional costs to GPs associated with the PIDR change. The Department is continuing to work with MDOs and with GP representatives. At the time of writing, the MDOs have not reflected the PIDR change in their subscription rates.