Poor families of babies brain-damaged at birth given lower payouts than richer parents

Wes Streeting has promised to overturn the “jaw-dropping” and “indefensible” inequality in the NHS compensation scheme for babies brain-damaged at birth that means wealthy parents get higher payouts than poorer families.

The health secretary said he was “determined” to change the system for dealing with clinical negligence in maternity care, which links the level of damages paid to the parents’ income and background.

The existing longstanding compensation scheme includes a payment for future “loss of earnings”, based on what a child might have been expected to earn over the course of their life had they not been harmed at birth.

Under a bizarre anomaly, highlighted by The Observer this month, this is calculated by looking at the child’s background, including their parents’ earnings and education. Other “relevant factors” such as the achievements of their siblings can also be taken into account.

It means that children of wealthy parents can receive higher damages than those from less privileged backgrounds. The largest packages are typically given to the richest families.

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Source: The Observer (20 November 2025)