DMFD261 Personal injury claims 2025-26

1.1.    Report LFC-24-121 to the London Fire Commissioner (LFC) sets out that prior approval to settle high-value personal injury (PI) claims has been sought each financial year, with the last decision (DMFD218) approved in December 2023.
1.2.    The report notes that the majority of PI claims against the LFC are for amounts below the £150,000 scheme of delegation threshold. However, for claims involving diagnoses of mesothelioma, other asbestos-related illnesses (asbestosis, lung cancer), cancer-related claims, psychiatric injuries, and any claim that results in a medical retirement, the value is likely to exceed £150,000.
 

2.1.    The purpose of the request is to ensure that PI claims over £150,000, and up to the amount set out in Part 2, can be settled quickly and without the requirement for additional decision-making by the GLA.
2.2.    The paper notes that the Deputy Mayor for Planning, Regeneration, and the Fire Service (the Deputy Mayor) will continue to be notified by the LFC’s General Counsel upon receipt of claims anticipated to exceed £150,000. The LFC will continue to provide a year-end financial update on the spend that occurs in relation to this decision.
 

3.1.    The public sector equality duty requires that both the LFC and the Deputy Mayor have due regard to the identification and elimination of unlawful discrimination, harassment, and victimisation; and to advance equality of opportunity, and foster good relations, between people who have a ‘protected characteristic’ as defined under section 149 of the Equality Act 2010 and those who do not. 
3.2.    There are no specific equality implications arising from this decision. 
 

4.1.    There are no conflicts of interest to declare from those involved in the drafting or clearance of this decision. 

5.1    It is recommended that authority is delegated to settle all PI claims up to the maximum amount specified in part 2 of this decision.
5.2    The LFC’s 2025-26 budget submission includes an amount contained in part 2 of this report as base funding. This budget is based on the previous year’s spend and future anticipated expenditure. It is currently estimated it will be sufficient to meet the costs arising in 2025-26. 
5.3    A reserve held to supplement the base budget for unexpected circumstances is forecast to be fully used by March 2025. Any expenditure above base budget will therefore be a draw on the General Fund reserve.
 

6.1.    Under section 9 of the Policing and Crime Act 2017, the LFC is established as a corporation sole with the Mayor appointing the occupant of that office.
6.2.    Under section 327D of the Greater London Authority Act 1999, as amended, the Mayor may issue to the LFC specific or general directions as to the manner in which the holder of that office is to exercise his or her functions.
6.3.    By direction dated 1 April 2018, the Mayor set out those matters for which the LFC would require the prior approval of either the Mayor or the Deputy Mayor. In particular, paragraph (b) of Part 2 of that direction requires the LFC to seek the prior approval of the Deputy Mayor before “[a] commitment to expenditure (capital or revenue) of £150,000 or above is identified in accordance with normal accounting practices”. The proposed expenditure exceeds this financial threshold, accordingly, prior approval from the Deputy Mayor will be required.
 

Part 1 - Appendix 1 - LFC-24-121 Personal Injury claims 2025-2026