201710.23
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22% Increase in State Compensation Claims

A recent report by the State Claim Agency has revealed that there was an increase in the cost of compensation claims taken against the State, bringing the overall spend to approximately €2.2 billion during 2016.

This is a 22% increase on the previous year’s figures according to the agency which is responsible for legal actions taken against the State. The total number of case encountered during 2016 was 8,900 at the end of 2016, up from 6,000 in 2015.

Main Reasons for Rise in Compensation Paid Out by the State

  1. The Department of Education settled/paid out compensation claims for roughly €50 million.
  2. €1.9 billion of the €2.2 billion total compensation paid out was by Tusla and the Health Service Executive (HSE).
  3. Anyone who wins a legal action is now entitled to a higher pay out following a Supreme Court ruling to make up for falling returns on the cash.
  4. The Department of Justice and Defence paid out compensation claims worth €175 million compared to €27 million of claims for the the Department of Health.

As part of the National Treasury Management Agency (NTMA), the State Claims Agency was set up to address the continual increases in compensation claims being taken against the State.

Séamus McCarthy Comptroller and Auditor General for  the NTMA commented saying “The number of claims under management has increased significantly since 2011”.