The evolving landscape of public sector claims influenced by devolution, financial constraints, and key social factors.
The factors affecting public sector claims always make for a dynamic landscape. Recent social, political, economic and environmental factors have the potential to change that landscape further.
Devolution, and the inevitable re-organisation that will follow, is top of the local government agenda at present. The new roles and responsibilities created, in particular, will change the risk profile. In addition, financial constraints will continue to put a strain on delivering core services.
Here we identify four key current issues which will impact on the profile of the claims we are likely to see in the future:
Increased regulation
This is clearly a particular area of focus for the Government and the King’s Speech put heavy emphasis on such proposals. The Terrorism (Protection of Premises) Act 2025, better known as Martyn’s Law, has received Royal ascent (see Paul Tarne’s article last month). The Act introduces a raft of measures for managing public spaces when headcount exceeds specified levels. The Cyber Security and Resilience Bill is currently going through Parliament and includes new duties to prevent and prepare. Also included is mandatory incident reporting, resilience by design and proposed ransomware payment bans for the public sector.
Adult social services
This is a key area of local government expenditure with some local authorities spending in excess of 60% of their budget on this alone. Recently, the Government announced plans to reform the immigration system which will directly impact the care sector given that it remains dependant on employees from abroad. What will be the nature of these impacts? Will we see a decrease in private provision putting public services under further strain? Will the additional funding the Government has recently announced bridge the gap?
The full implications of the potential risks the public sector faces are yet to be seen, the Government is currently consulting on adult social care to lay the foundations of a national care service. This consultation is at the first stage with the second stage due to be reported upon in 2028.
Special Educational Needs (SEN)
The much-publicised SEN crisis is directly relevant to public sector claims. There has been a dramatic increase in pupils with Education, Health and Care Plans and local government is overloaded with SEN appeals for support for children with learning/neurodiverse conditions, no doubt exacerbated by the pandemic. Given that limitation for claims arising from SEN disputes does not crystallise until the pupil is18 years of age, these claims represent a long-term challenge.
Environment
Environmental impacts represent a grave source of risk. For example, recent extreme flooding in Europe contrasts with the hottest Spring on record and exceptionally dry conditions in the UK. This makes the likelihood of subsidence far greater as trees seek the moisture they desperately need and can potentially increase the risk the public sector is exposed to.
Identifying issues such as these is clearly key to ensuring effective risk management is in place to manage and minimise these risks so that the opportunity to pursue claims is limited as far as possible and the public purse is protected. We will touch upon further issues in the forthcoming insights as we continue to see them unfold.
Helen Brown, National Head of Public Sector claims
For further information on the topics discussed, pleased contact Helen Brown
