National Pothole Day in January was not a day for celebration for most highway authorities. Highways claims account for 80-90% of all public liability claims, and even local authorities with rigorous inspection regimes have to manage them, even if those claims are ultimately unsuccessful.
UK drivers were 1.7 times more likely to break down as a result of a pothole as of October 2024 than they were in 2006 and pothole compensation claims submitted to 18 local authorities more than doubled in the 12 months between 2022 and 2023, going up from 8,327 to 20,432. Surrey County Council saw the biggest increase, with a jump from 734 in 2022 to 3,418 in 2023.
Despite the huge rise in year-on-year claims, 17 local authorities paid out just 15% of the 20,432 claims submitted by drivers in 2023, equating to a total of around £824,000. As the number of pothole damage claims are increasing, the proportion of claims refused is increasing proportionately.
Highway authorities have been successful in defending claims even though the number have increased. Since its introduction in 2018, the Well-Managed Highways Infrastructure Code of Practice has changed the approach for highway authorities from having to rely on specific guidance and recommendations to being able to implement their own risk assessments and carry out repairs through local levels of service.
Following the introduction of the code, highway authorities were braced to receive an immediate challenge from claimants in relation to the discretion given to highway inspectors as to whether a defect met or was close to the intervention level, and also in relation to repair times. At Forbes we have not seen that challenge and the types of claims have remained largely the same.
Other wider developments have also benefited highway authorities. Recent changes have meant that claims worth up to £100,000 are now subject to fixed fees. As a result, local authorities can reserve more accurately and keep costs down.
Factors influencing claims
Various factors contribute towards the rise in highway claims. The media interest in potholes and varied reporting infers that as long as there is a pothole of any description there is a valid claim.
Media interest may also have contributed to an increase in Freedom of Information requests. Press interest and articles highlighting the huge amount of money and resources used to deal with highways claims encourages claimants to target highways authorities that are already under pressure.
Across the country there has been a deterioration of roads caused by weather, lack of resource and failed repair.
Highway authorities remain vulnerable to fraud as there are often no independent witnesses or corroborative evidence. Extreme weather conditions cause a rise in road defects, leaving greater room for opportunistic fraudsters to falsely claim potholes were responsible for existing vehicle damage or personal injury.
Maintenance and repairs
In December 2024 it was announced by the Government that £1.6 billion would be given to local authorities specifically to go towards highways maintenance and repairs. It is expected that seven million more potholes will be filled this year and into next as a result, and the public is being encouraged to report potholes in their area to their local authority for repair. It is intended that a quarter of the budget uplift will be held back from local authorities until they can show they are delivering on their repairs.
The allocations of the budget include:
- Over £327 million for local authorities in Northwest, Northeast and Yorkshire & Humber
- Over £372 million for local authorities in East Midlands and West Midlands (the largest sum, reflective of Derbyshire being one of the worst affected counties for potholes in the country)
- Over £244 million for local authorities in the East of England
- Over £322 million for local authorities in the Southeast and London
AI technology is also being used to identify potentially fraudulent claims and trends, and in carrying out driven inspections to look at the condition of and identify defects in the highway.
There are exciting times ahead with potential new technologies and in the light of a steady increase in pothole related vehicle damage claims, with an increase of litigants in person and fraud, highways authorities and their insurers embracing innovations will be in the best position to continue to successfully defend claims and drive down the number of claims made.
