Posted: October 21st, 2017
A recent report issued by the State Claims Agency has shown that there was a rise in the cost of compensation claims taken against the State, bringing the overall cost of these compensation actions to almost €2.2 billion last year.
This is equivalent to 22% increase on the 2016 figures according to the agency responsible for legal actions taken against the State. The total number of cases encountered throughout 2016 was 8,900 up to the end of the year, up from 6,000 in 2015.
Main Factors Behind the Increase in Compensation Paid Out by the State
- The Department of Education settled/paid out legal compensation claims for an estimated €50 million.
- €1.9 billion of the €2.2 billion overall State compensation paid out was by Tusla and the Health Service Executive (HSE).
- Any individual who is successful in 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 awarded.
- The Department of Justice and Defence paid out State compensation claims worth around €175 million compared to €27 million of compensation claims for the Department of Health.
The State Claims Agency, part of the National Treasury Management Agency (NTMA), was established to address the continual increases in compensation actions being made against the State.
Séamus McCarthy Comptroller and Auditor General for the NTMA commented on the increase of 22% saying “The number of claims under management has increased significantly since 2011”.