This guide is maintained as a current resource for August 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Detailed guide to how interim payments are made in clinical negligence claims in England and Wales. Explains what interim payments are, when they can be requested, legal criteria under the Civil Procedure Rules, how amounts are assessed, practical steps to apply, and how interim payments affect final compensation.
In clinical negligence claims in England and Wales, the process from initial injury to final settlement or judgment can be lengthy. Serious injuries often lead to ongoing financial pressures - for example, loss of earnings, medical treatment costs, care needs, or essential home adaptations. To ease financial hardship before a final compensation award is agreed or determined by a court, a claimant may apply for an interim payment (sometimes called a payment on account). Interim payments are part payments of eventual compensation made before a claim is concluded. This article explains how interim payments work, the legal basis for them, when they can be sought, how they are assessed, and what practical steps claimants should consider.
What an Interim Payment Is
An interim payment is a partial payment of the compensation that a claimant is likely to receive in a clinical negligence claim, paid before the final settlement or judgment. The purpose of an interim payment is to provide financial relief to cover pressing needs arising from negligent treatment so that claimants are not forced to delay necessary care or settle their claim early due to financial pressure. The amount received as an interim payment is not extra compensation; it is deducted from the final total awarded when the claim concludes.
Legal Basis for Interim Payments
Interim payments in clinical negligence and other civil claims are governed by Part 25 of the Civil Procedure Rules (CPR). Under CPR 25.23, the court can order a defendant to make an interim payment in specific circumstances, including where:
- The defendant has admitted liability (accepts responsibility) for the claim or parts of it;
- The claimant has obtained judgment against the defendant for damages (with the amount left to be assessed); or
- The court is satisfied that, if the claim went to trial, the claimant would obtain judgment for a substantial sum of money against the defendant.
These rules provide a flexible framework for financial support where there is a realistic prospect of success in the overall claim.
When Interim Payments Are Available
Admission of Liability
If the defendant admits liability - that is, accepts that their negligence caused the claimant's injury - a request for an interim payment is more likely to succeed. Liability admissions can be made early in the claim, sometimes before formal court proceedings are issued, and may lead to an agreed interim payment without the need for a hearing.
Court‑Ordered Interim Payments
If a defendant refuses or delays making an interim payment voluntarily, claimants can apply to the court once proceedings have been issued. The court will consider whether one of the CPR conditions mentioned above is met - for example, whether the claimant is likely to succeed at trial and obtain substantial compensation - and whether a partial payment is justified.
Voluntary Interim Payments
Parties can agree on an interim payment without court intervention. Solicitors often negotiate interim payments with the defendant's insurer or legal representative as the claim progresses, supported by evidence of need and likely value of the claim.
What Interim Payments Can Be Used For
Interim payments can be made to meet many types of expenditures arising from negligent harm, including:
- Urgent medical treatment or rehabilitation not immediately available through public services.
- Care costs, including paid care at home or support services.
- Loss of earnings or ongoing financial obligations such as rent or mortgage payments.
- Adaptations to home or transport required because of disability.
- Equipment, aids and specialist support recommended by clinical experts.
Claimants do not usually have to specify exactly how the interim payment will be spent, but demonstrating that the requested amount relates to foreseeable and reasonable needs arising from the injury strengthens the case.
How the Amount Is Assessed
Reasonable Proportion
The amount awarded as an interim payment must represent a “reasonable proportion” of the likely final compensation. The court will look at evidence of:
- The likely value of the full claim based on available medical and financial evidence.
- Losses already incurred, such as out‑of‑pocket expenses or past care costs.
- Anticipated future losses, particularly where these are documented and appear likely to be awarded.
There is no set maximum, but interim payments should not exceed what is reasonable in the context of the overall claim's potential value.
Evidence Required
When applying for an interim payment - especially through the court - the claimant's solicitors supply supporting material, which generally includes:
- Medical reports demonstrating injuries and ongoing needs.
- Schedules of loss outlining special damages including past and anticipated future losses.
- Evidence of financial need such as loss of earnings or treatment costs.
- Estimates or quotes for care, equipment or adaptations that are needed urgently.
The evidence helps the court determine both whether an interim payment is justified and what amount is appropriate.
Court Process for Interim Payments
If the defendant will not agree to a voluntary interim payment, the claimant must make a formal application to the court, usually supported by a witness statement and evidence. The court then reviews whether CPR criteria are met and whether the requested amount is reasonable relative to the overall likely award. Claimants may attend a short hearing, though often the judge can decide based on written submissions.
Children and Protected Parties
Where the claimant is a child or a protected party (someone who lacks legal capacity or is represented by a litigation friend), the court's permission is required before the interim payment can be made, even if the defendant agrees, to ensure the payment serves the claimant's interests and is managed appropriately.
Multiple Interim Payments
There is no restriction on the number of interim payments a claimant can request during the course of a claim. Each application must be justified on its own merits, and payments will be deducted from the final award. Interim payments may also be made in instalments if ordered by the court.
Effects on Final Compensation
Interim payments are accounted for against the final compensation amount. When the claim is settled or concluded at trial, any interim payments already received are subtracted from the total damages award. For example, if a claimant is ultimately awarded £200,000 in total damages and has received £40,000 in interim payments, the balance of £160,000 will be paid at settlement or judgment.
Overpayment
If interim payments exceed the final award, the claimant may have to repay the excess plus interest. Courts and insurers aim to avoid this by ensuring interim payments are reasonable relative to the expected overall award.
Practical Considerations
Impact on Benefits
Receiving an interim payment may affect a claimant's entitlement to means‑tested benefits (such as Universal Credit), depending on how the funds are held. Placing compensation into a Personal Injury Trust can protect benefit entitlements by treating the funds as trust capital for the claimant's needs without affecting eligibility.
Negotiation and Timing
A proactive solicitor will consider interim payments early in the claim, especially where the claimant needs immediate support. Evidence should be prepared so that requests are credible and clearly tied to foreseeable needs arising from the negligent harm.
Common Questions
Do interim payments guarantee financial security?
No. Interim payments provide partial relief while a claim is ongoing and are deducted from the final award. They are intended to help with urgent expenses, not to replace the full compensation due.
Is a defendant obliged to agree to an interim payment?
No. A defendant may refuse, but the claimant can apply to the court for an order under CPR Part 25 if there is sufficient evidence that the claimant is likely to succeed and deserves a payment.
Can interim payments delay process?
Requests for interim payments can add procedural steps, but they are often processed quickly where evidence is clear and liability is admitted or strongly supported. Early negotiation can reduce delays.
Key Takeaways
Interim payments in clinical negligence claims in England and Wales are partial payments of compensation made before the final settlement or judgment. They provide financial support for immediate needs such as treatment, care, lost earnings, adaptations and rehabilitation. Requests can be made by agreement with the defendant or through a court application under CPR Part 25 when there is a strong likelihood of success and substantial final damages. Interim payments must represent a reasonable proportion of the likely award and are deducted from the final compensation. Claimants may apply for multiple interim payments as their needs evolve. Appropriate evidence and early legal planning help ensure that interim payments meet urgent needs without undermining the overall claim.
