Black Monday Part 2: ‘Think-tank blames compensation culture for EVERYTHING

Black Monday Part 2: 'Think-tank blames compensation culture for EVERYTHING

Photograph: BBC

Chiming nicely with this Government’s anti-health and safety mantra, a new ‘think tank’ report claims that “an ingrained compensation culture is bleeding health and education services dry,”…

Independent study? Oh really?

Well at last the Government has unearthed somebody who thinks hurt and injured people seeking compensation are the cause of all that’s wrong with the NHS and the education system… 

Glib tabloid sound bite – 1, reasoned debate – 0.

Payouts by the NHS Litigation Authority (NHSLA) have trebled in the past decade, standing at £911m in 2010/11, according to the report by the Centre for Policy Studies at Kent University.

Of this, £863m was paid in connection with clinical negligence claims, the report says.

OUR QUESTION: Did those claiming compensation not have to PROVE negligence?

ANSWER:   Yes.

Are we expected to believe that insurance companies just simply pay out on spurious claims? Don’t think so. If that was the case we would be blaming the insurance companies for the myth of the ‘compensation culture…wait a minute…

So what is the real issue here? Is it the cost of compensation claims or falling standards of care and education?

The report adds that as of March last year, the NHSLA estimated its potential liabilities at £16.8bn, though a large proportion of cases do not reach court.

Out of 63,804 medical negligence claims received by the NHSLA, 38% were abandoned by the claimant, 45% were settled out of court 3% had damages approved or set by a court and 14% have yet to settle.

Tim Knox, director of the Centre for Policy Studies, said: “This rise in the compensation culture has huge – if largely hidden – costs. In particular, it has created a climate in which professionals will prioritise litigation avoidance above what is best for their pupils or patients.”

This is an outrageous and unsupported claim. Mr Knox is asserting that NHS clinicians and school teachers are putting patients and pupils a poor second behind financial considerations.

By the way, why is the HSE silent when reports like this are churned out? Isn’t the HSE keen to dispel health and safety myths? There is a section on the HSE website dedicated to this very topic… 

Meanwhile, back in the Twilight Zone, Mr Knox, at a stroke, has just RUBBISHED the ethical standards of hundreds of thousands of highly paid, highly qualified and highly respected professional people throughout the UK.


The report goes on to warn that instead of improving safety and accountability, it (the oft-quoted ‘compensation culture’, has resulted in “significant costs to the quality of services and the experiences of those who use them”.

Lest the dead horse has not been flogged enough, it continues: “The combination of an ingrained compensation culture and litigation avoidance is bleeding the health and education services dry, both financially, and in terms of their public sector ethos and professional role.”

Report author Professor Frank Furedi said fear of legal action can hold back progress and creativity. “It erodes professional autonomy, stifles innovation, leads to defensive practices in both hospitals and schools and encourages greater bureaucracy,” he said.

Wow, we say, Professor Frank. That’s quite a lot to lay at the door of the non-existent compensation culture. It’s not us saying it’s non existent; it’s the two recent Government sponsored reports on the subject that rubbished the notion of a compensation culture:

‘Common Sense – Common Safety’ – Lord Young, 2010.

‘Reclaiming Health and Safety for all’ – Professor Ragnar Lofstedt, 2011.

However, according to Frank Furedi, “‘Best practice’ is now defined as having checked all the boxes in a quality assurance form rather than doing what is best for the patient or pupil.”

About all we can say for this study is that it checks the box for finding a study to support the ill-founded notion of a compensation culture and thus the Government can happily push on with its Crusade against the legitmate rights of its citizens to seek justice and fair compensation.

What must Lord Young and Professor Lofstedt think?   




‘Complete and utter Maudeness’ – Minister creates havoc at home with lethal ‘advice’ on fuel storage.

'Complete and utter Maudeness' - Minister creates havoc at home with lethal 'advice' on fuel storage.

The Telegraph

Before we vilify Francis Maude for truly mind-bogglingly staggering ineptitude, we should consider his pronouncement within the context of the government’s cavalier approach to health & safety legislation in the UK.

Firstly we had Lord Young of Gaffem’s report ‘Common Sense Common Safety’, wherein the noble peer delivered what was expected of him and proferred the idea that we could dispense with much of the UK’s current health & safety regulations.

David Cameron fell on the report like a hungry wolf spying the fatted calf and immediately announced a raft of cut backs and claw backs as he began the process of dismantling 178 years of hard fought progress in worker and public safety in this country.

So far, so bad.

The primary justification for this rush to deregulate is the much-vaunted yet fatally flawed theory that less onerous health & safety regulation means more profit for business.

Then we had Professor Ragnar Lofstedt’s report ‘Reclaiming Health & Safety For All’. Professor Lofstedt has clearly stated that he is not in favour of ‘radical’ reform, apparently contrary to prime minister David Cameron’s attack on the ‘monster’ of health and safety.

The PM referenced Lofstedt’s report from December as he blamed the ‘albatross’ of health and safety legislation for holding back British businesses but the King’s College academic, insisted he had never called for significant changes to legal policy and did not believe in a compensation culture.

When asked if he was worried his report could be hijacked for political purposes, he said: ‘I am concerned about it. I am concerned my review could be misused.’

So bad, so far…

‘The scores on the doors’ : Reports delivered – 2. ‘Common Sense’ health & safety strategy in the UK – 0.

The second assumption underpinning the current madness is the notion that most day to day activities and even most workplaces are intrinsically safe and thus we only require a light touch on the regulation tiller to ensure our safety as we go about our daily lives…

and this is where Francis Maude comes in.


Fire officers have warned the public not to store petrol in their home after a woman suffered 40 per cent burns in a fire started by petrol she was transferring between containers, following advice from government minister Francis Maude that motorists should consider storing fuel in anticipation of a tanker drivers’ strike.

The victim, 46-year-old Diane Hill, was badly injured after her clothes caught fire while decanting the fuel from one container into another at her home on York. A fire service spokesman said:

‘She was using her cooker at the same time as pouring petrol from one container to another using a jug after her daughter had asked for some petrol.’

The mother-of-two, from the Acomb area of York, was taken to Pinderfields Hospital in Wakefield, Yorks while two firefighters wearing breathing equipment dealt with the aftermath.

At the time of writing no apology has been received from Mr Maude…but the real bad news is that he probably doesn’t know what he and his government should be apologising for.  

Lord Young of ‘Gaffem’ back in favour at Number 10

Good news and bad news for worker safety in the UK

Bad news: Lord Young is back

Good news: there is no good news, well not much anyway… 

Getty Images

‘Never had it so good’ peer Lord Young of Graffam returned to Downing Street last week on Prime Minister’s Mates’ Service or PIMMS… 

His mission, having chosen to accept it, is to help businesses thrive by ridding them of red tape and stifling health and safety regulations.

Thus a fundamentally flawed premise is enshrined in the noble Lord’s brief – Health & Safety costs money and costs jobs.   

In stark contrast to the UK’s government’s stance on health and safety in the workplace, David Michaels, assistant secretary of labor for the US Department of Labor’s Occupational Safety and Health Administration (OSHA), said on 15th February this year:

‘Despite concerns about the effect of regulation on American business, there is clear evidence that OSHA’s commonsense regulations have made working conditions in this country today far safer than 40 years ago when the agency was created, while at the same time protecting American jobs.’

Unfazed by the irony in resurrecting Lord Young’s career in the run up to Halloween, Number 10 officials have set up a new office for the 79-year-old peer who will spearhead a new push to remove barriers to growth for small and medium size companies.

His focus will be on working to ensure businesses are not stifled by regulation and he will look closely at the way health and safety rules impact on firms.

No agenda there then?

Last year his report Common sense, Common Safety, was welcomed by Mr. Cameron who has asked the Conservative peer to cut through the rule book and see where ministers can help businesses.

Unfortunately neither Mr. Cameron, the insurance industry lobby nor the bulk of commentators who regularly line up to vilify accident victims actually noticed that Lord Young didn’t agree with them…

For the record, this is what he said on page 19 of ‘Common Sense, Common Safety’:

Britain’s ‘compensation culture’ is fuelled by media stories about individuals receiving large compensation payouts for personal injury claims…

The problem of the compensation culture prevalent in society today is, however, one of perception rather than reality…

The public believes that the number of claims and the amount paid out in damages have also risen significantly.

The really unfortunate thing however is that Lord Young singularly failed to get this ‘common sense’ message across.

He wrote that the compensation culture is more myth than reality yet he remained mute and supine on the core issue when the report’s findings were made public. Perhaps this is why he is so suited to the task of fixing the non-problem of the ‘burden’ of Health & Safety legislation? 

Last November Lord Young of Gaffem pronounced:

For the vast majority of people in the country today, they have never had it so good ever since this recession – this so-called recession – started…”

We await with baited breath, his magisterial musings on the tiresome burden imposed by laws designed to keep people safe and well at work in the UK.

However, Mr. Cameron has clearly decided Lord Young has served his time and will welcome him back…just when we thought he had gone for good last October…  

 So farewell then Lord Young of Gaffem. 

 You resigned after you made a gaffe.

 You claimed that most people had ‘never had it so good.’ 

 Unfortunately this just isn’t true,

 Like much of your ‘Common Sense Common Safety’ review.


But not so fast, the prodigal returns.

Expect many more workplace cuts, crushes, crashes and burns.  

Jack Straw aimed a kick at the wrong target when he bemoaned activities of claims companies and lawyers in referral fee investigation.


Thus, at a stroke, Djanogly kicked into touch the key finding of Lord Young’s 2010 report on the Compensation Culture (see our other blog posts) i.e. that there is no compensation culture (page 26 of the report) – it is the figment of the popular press’ imagination, aided and abetted by the insurance industry. 



Mr. Straw, the Labour MP for Blackburn, said the scandal was hitting ‘perfectly law-abiding people’ with sky-high insurance costs…


and what about the perfectly law-abiding people who will find their access to justice cut off?


Mr. Straw, whose own investigation (bit of a ‘cult of Jack’ going on here) into how even the police are taking tip-fees, prompted the select committee to re-open its earlier enquiry, said: ‘What I am clear about is that of a total of about £9billion premium income, £2billion is costs caused by people who can be accurately be classed as the parasites in the system.


How is he clear about this again? Didn’t HE read Lord Young’s report?


Mr. Straw told MPs that the previous night, while he was preparing his evidence to the committee, he had been phoned at home by a claims accident company seeking to represent him over an alleged accident  in the last three years: ’I’d not had an accident in the last three years,’ he told MPs.

‘But it shows the relentless pressure inside these very dodgy firms.’


Yes Jack, but you like countless others did not claim, nay COULD NOT CLAIM BECAUSE YOU HADN’T HAD AN ACCIDENT – GEDDITT?


Mr. Straw added: ‘Claims management companies are parasitic. In any other walk of life, we would describe this racket by referral companies as bribery.

‘These practices are leading to very substantial (insurance) increases on law-abiding motorists.’


Jonathan Djanogly said the Government intended to band the ‘merry-go-round’ of referral fees which have sent premiums rocketing.


He noted: ‘You only have to turn on daytime TV to see lots of dodgy solicitors’ firms which are part of this racket.’ He said there were two firms of solicitors within 100 yards of his own front door offering ‘£600 for a referral.’


Memo to Justice Secretary:

If dodgy solicitors are advertising on tv, then bring them to justice now!! Haven’t you heard about the Advertising Standards Authority?


Justice Minister Jonathan Djanogly told the committee the Government’s decision to ban the ‘merry-go-round’ of referral fees was ‘appropriate’ and had been ‘generally welcomed’.


Referral fees were part of the ‘sick, suing culture’ that was keeping premiums artificially high: ‘We want the benefit to feed through to the consumer in the form of lower premiums.’…and fair compensation settlements!!! 


He believed the Government’s reforms would bring commons sense to the system by weeding out greedy claims, noting how under the current system: ‘If you are a claimant and have no chance of losing, you are almost crazy not to sue. Why wouldn’t you? That’s what we propose to reverse.’ 


This is getting rather tiresome. Will somebody PLEASE tell the UK Justice Minister that an injured person wishing to make a claim has to actually prove negligence? Ye gods – does he think that people claiming compensation just have to ask the insurance companies nicely?


Keen to get in on the act, or is it the feeding frenzy, roads Minister Mike Penning condemned the claims firms as ‘ambulance chasers’ noting: ‘As a human being I find it very difficult that any organisation would seek to profit from others’ injury. Yet fifty per cent of claims are personal injury claims.’ 


This comment is about as crass and unthinking as it is possible to get, even for a government minister.


Critics say soaring premiums are tempting some to drive uninsured – with an estimated 1.3 million drivers now on the road without insurance.


A word anyone about insurance company profit margins or their active participation in and encouragement of referral payment schemes?


MPs on the Transport select committee report have already condemned the current system as ‘dysfunctional’. We take it they mean the claiming ‘thing’ and not Mr. Djanogly’s department…although that story isn’t over yet, not by a long way.


Paul Evans, chief executive of insurance company AXA UK, said increases had slowed to about a 1 to 2% rise a month but added:’ we shall continue to see continuing increases in the months to come


aye right enough, as he squeezes every ounce of profit out of claimants before his game is rumbled by a myopic government and an enraged public who aren’t as gullible as he thinks.

US health and safety laws are good for business

Workplace health and safety regulations not only save lives, they benefit the economy, the USA’s top safety official said yesterday.

In stark contrast to the UK’s government’s stance on health and safety in the workplace, David Michaels, assistant secretary of labor for the US Department of Labor’s Occupational Safety and Health Administration (OSHA), said:

‘Despite concerns about the effect of regulation on American business, there is clear evidence that OSHA’s commonsense regulations have made working conditions in this country today far safer than 40 years ago when the agency was created, while at the same time protecting American jobs.

The truth is that OSHA standards don’t kill jobs. They stop jobs from killing workers. OSHA standards don’t just prevent worker injuries and illnesses. They also drive technological innovation, making industries more competitive.’

Speaking ahead of a Republican-driven formal government committee hearing ‘Investigating OSHA’s regulatory agenda and its impact on job creation’, Dr Michaels said: ‘Many OSHA standards cost little and easily can be adopted by employers with nominal effect on the bottom line. OSHA, by law and by practice, always looks at both the overall cost of compliance with a proposed regulation and at the expected benefits. The evidence shows that OSHA generally overestimates the cost of its standards.

Congress’ Office of Technology Assessment, comparing the predicted and actual costs of eight OSHA regulations, found that in almost all cases ‘industries that were most affected achieved compliance straightforwardly, and largely avoided the destructive economic effects’ that they feared.’

He concluded ‘OSHA’s job isn’t over. More than 3 million workers in America are injured every year. Every day 12 workers die on the job. OSHA’s commonsense regulations are helping to drive these numbers down and, at the same time, helping American businesses modernise and compete in the global economy.’

At a time workplace safety campaigners are on the back foot in the UK, we implore the government to take heed of the US example and in its own words, apply ‘commonsense to common safety’, as it purported to do last year when Lord Young was comissioned to review health and safety regulations. 

Unfortunately, when the noble Lord took careful aim at the so-called ‘compensation culture’ and hit the wrong target, the government rushed to congratulate him (as he had produced the justification for draconian budget cuts) and quickly began the systematic dismantling of the regulations that protect workers’ lives and help industry become more – not less – competitive.

Bonnar & Company is very concerned about the dilution of health and safety legislation in the UK and we lend our voice to those campaigning on behalf of worker safety.