Northern Ireland

Infrastructure department compensation payouts double in five years - despite £500m spend to fix roads

The Department for Infrastructure paid out £7.5million in compensation claims in 2023/24, compared with just under £3million in 2019/20

Stormont’s Infrastructure Minister John O’Dowd has welcomed the funding announcement
Stormont’s Infrastructure Minister John O’Dowd (Niall Carson/PA)

The Stormont department responsible for roads maintenance has seen its compensation claim payouts double in the last five years - despite spending £500million in attempt to fix road defects.

The Department for Infrastructure paid out £7.5million in compensation claims in 2023/24, compared with just under £3million in 2019/20.

The figures were revealed in response to an assembly question from DUP MLA Michelle McIlveen.

Minister John O’Dowd’s department has forked out £22.6million since 2019 in compensation, primarily for public liability claims which include personal injuries and damage caused to vehicles due to road defects.

The significant compensation payouts come despite a £500m spend from the department to improve roads in Northern Ireland in the last five years.

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2023/242022/232021/222020/212019/20
£7,477,000£5,675,000£4,107,000£2,315,000£2,971,000

Figures above show the Department for Infrastructure’s total spend on compensation in the last five years

“Compensation is paid for a variety of reasons, primarily in public liability cases but also for procurement and contract disputes, employer liability cases and damage to vehicles,” Mr O’Dowd said.

“Not all compensation is paid as a consequence of legal action, and it is not possible to separately identify payments made following issue of a writ or civil bill from those settled without legal action and, therefore, the table below includes the total expenditure by my department on damages or compensation.”

When asked to comment on what has led to the rise in the compensation payouts in the last five years, a departmental spokesperson did not provide an explanation, simply stating: “The increase over the five years from 2019-20 to 2023-24 relates primarily to an increase in the number and value of public liability claims.”

The assembly question response also showed separately that the department had coughed up more than £19million in legal fees in the last five years.

The amounts represent the cost of legal services provided by the Department of Finance’s Solicitors Office, external solicitors and barristers, and the cost of outlays associated with legal cases.

2023/242022/232021/222020/212019/20
£4,678,000£5,189,000£3,733,000£2,552,000£3,062,000

Figures above show the total amount paid by the Department for Infrastructure on legal fees in the last five years.

Legal costs are incurred primarily in defending public liability cases but also in relation to major road schemes, planning applications, procurement and contracts, employer liability cases and judicial reviews.

Mr O’Dowd’s department has paid £4.9million in the last twelve months in legal fees, down from the £5.4million it had spent the previous year.