Former cabinet minister Stephen Byers

A compensation culture in the UK is harming health and education services, Stephen Byers has warned.

In a speech to a Birmingham conference, the former transport secretary proposed that the NHS and schools develop "no fault" compensation schemes.

No-win-no-fee deals with solicitors should be scrapped where cases would have been settled out of court, he argued, while legal reform should allow early mediation and intervention.

In addition, the former Cabinet minister suggested that there be a cap on costs paid to lawyers and accident management companies, with better regulation of them and their advertising.

"Money is being taken away from saving lives and educating our children to pay for a compensation system in which the real beneficiaries are the lawyers and accident management companies," he said.

Medical negligence payments have risen from £1 million in 1974 to £477 million today - the equivalent of 22,700 nurses.

Claims against schools have reached £200 million per year, or 8,000 teachers.

"There has been little public debate about the growth in this blame, claim and gain culture," Byers added.

"Yet the consequences for our society are dramatic. We see it with playground equipment being fenced off; hanging baskets being taken down as a health hazard; teachers being advised to no longer supervise school outings.

"But it also reflects how we see ourselves. A reluctance to take responsibility for our own actions with always someone to blame and never at fault ourselves. For the well-being of our society this is a state of mind that must change."

His comments were welcomed by the NASUWT trade union.

"I welcome Stephen Byers recognition of the adverse impact of the increasingly litigious nature of society on schools and hospitals," said deputy general secretary Chris Keates.

"NASUWT has highlighted consistently the demise of the concept of a genuine accident and the rise of the blame culture.

"All too frequently parents fall victim to legal firms and accident management companies which lure them into believing that the slightest trip or cut at school can attract substantial compensation.

"Such practices are not only a drain on financial resources but can take an excessive amount of time of heads and other staff answering solicitors letters and attending case conferences, distracting them from their primary task of focusing on teaching and learning.

"However, whilst sharing Stephen Byers concerns, the strategies for addressing this need careful consideration and it will be important to distinguish between those seeking to exploit the system and employees who suffer serious injury and assault as a consequence of incidents at work."