£700,000 Compensation Claim Bill For Local Councils

New figures reveal local authorities have paid out almost £700,000 in compensation over the last two years.

Published 20th Jan 2016

New figures show that over the last two years councils across Yorkshire and Northern Lincolnshire have paid out almost £700,000 in compensation.

The majority - over £500,000 - came from Hull City Council alone.

Meanwhile, East Riding of Yorkshire Council settled claims totalling around £100,000, North Lincolnshire had payouts of over £70,000 while North East Lincolnshire Council had the lowest bill which was around £3,500.

New research from the TaxPayers' Alliance reveals that over £100 million has been paid out in compensation claims against local authorities across the UK since 2013.

They say the figures suggest that some local authorities are failing to adequately deliver services - such as pothole repair and road maintenance - resulting in costly compensation claims.

Jonathan Isaby, Chief Executive of the TaxPayers' Alliance, said:

"The compensation culture is costing taxpayers dear and every pound spent on settlements or higher insurance premiums is a pound that isn't spent on essential services such as road maintenance or social care. “Of course, some of the payments made by councils will be entirely justified, as the most serious accidents can change lives. But in many cases, local authorities and their staff will be failing to live up to the standards required of them by law or paying out on frivolous claims too easily.

"Councils must do everything they can to ensure their mistakes and negligence don't result in such large bills for hard-pressed taxpayers - and take appropriate action against staff whose actions result in costly claims. We must also root out those who are playing the system with spurious demands for taxpayers' cash."

In response the councils have told us they follow 'robust' procedures when investigating compensation claims and payouts have significantly reduced since 2013.

A North Lincolnshire Council spokesperson, said:

“We follow robust procedures when investigating compensations claims made to the council. The amount paid out in compensation claims for 2014/15 has reduced considerably compared to 2013/14.

“We invest money each year into our roads; this year (2015/16) our budget for repairing our roads, including fixing potholes is £705,000 (to date). When we are made aware of a problem with our roads we fix the issue as soon as we can to ensure roads are safe for drivers and pedestrians.” An North East Lincolnshire Council spokesperson said:

“The amount settled is relatively modest when compared to other councils.

“The council only settles claims where there is a legal requirement to do so.

“We work closely with our insurers to robustly defend claims where appropriate.”