Our resources
This section sets out our revenue funding streams and planned expenditure against them. The relative size of the various schemes we operate are shown in the graphs and highlight the scale of the Clinical Negligence Scheme for Trusts (CNST) relative to our other activities.
NHS Resolution receives funding in two ways:
- Income from members of our indemnity schemes and from customers of training and other services offered.
- Grant-in-aid funding (cash financing) for services determined by the DHSC, Tables 3 to 5 show the various elements of our budgetary framework. The Revenue Resource Limit is the budget total for our revenue expenditure net of income.
As illustrated in figure 2 our total expenditure budget for 2025/26 is currently £3,387.6m, the majority of which (97.7%) is spent on resolving claims. Our total administration costs represent less than 2.3% of our overall expenditure.
Of the above £3,387.6m, NHS members contribute £3,057.0m in income as part of indemnity scheme membership and total funding from DHSC is £330.6m. Additionally, we plan to generate £1.0m of income to cover the cost of delivering Advice services not stated as free to customers outside of England.
Our planned growth relates to our Claims Evolution Programme which involves insourcing work to deliver greater financial savings against NHS legal costs. As the implementation of our new case management system comes to an end in year one of our strategy, we expect staff numbers in supporting functions to reduce, with an ongoing focus on continuous improvement and with greater opportunities for identifying and delivering efficiencies with the application of new technology.
Figure 2: A breakdown of NHS Resolution’s total expenditure budget for 2025/26
Table 3: Current annual expenditure 2025/26
| Indemnity scheme expenditure | £m |
|---|---|
| Clinical Negligence Scheme for Trusts | 2,951.0 |
| Liabilities for Third Parties Scheme | 42.0 |
| Property Expenses Scheme | 8.0 |
| Department of Health and Social Care clinical liabilities | 95.3 |
| Existing Liabilities Scheme | 32.3 |
| Department of Health and Social Care non-clinical liabilities | 8.3 |
| Ex-Regional Health Authority | 1.6 |
| Clinical Negligence Scheme for General Practice | 72.2 |
| Existing Liabilities Scheme for General Practice (MPS and MDDUS) | 95.3 |
| Clinical Negligence Scheme for Coronavirus | 2.4 |
| Total Indemnity Scheme Expenditure | 3,308.6 |
| Administration expenditure | £m |
|---|---|
| Member-funded Schemes Administration | 55.9 |
| Administration of General Practice Indemnity Schemes | 16.2 |
| Administration of Coronavirus Indemnity Schemes | 0.6 |
| Grant in Aid Expenditure for Practitioner Performance Advice and Primary Care Appeals | 6.3 |
| Total Indemnity Scheme Expenditure | 79.0 |
Table 4: Current annual budget 2025/26 – ring-fenced depreciation and impairments
| Ring-fenced depreciation and impairments | £m |
|---|---|
| – Depreciation | 2.5 |
| – Impairments | |
| Total ring-fenced depreciation and impairments | 2.5 |
Table 5: Capital expenditure
| Capital expenditure | £m |
|---|---|
| Capital expenditure 2025/26 | 0.6 |
| Total capital expenditure | 0.6 |
