Citation, commencement, application and interpretation

1. —(1) These Regulations may be cited as the National Health Service (Liabilities to Third Parties Scheme) (Amendment) Regulations 2014 and come into force on 1st May 2014.

(2) These Regulations apply to England only.

(3) In these Regulations “the Principal Regulations” means the National Health Service (Liabilities to Third Parties Scheme) Regulations 1999( 2 ).

Amendment of regulation 1 of the Principal Regulations

2. In Regulation 1 (citation, commencement and interpretation) of the Principal Regulations, in paragraph (2)—

(a) after the definition of “the Act” insert—

“ “the 2012 Act ” means the Health and Social Care Act 2012; ” ( 3 );

(b) for the definition of “relevant function”, substitute—

“ “relevant function” means—

Amendment of regulation 4 of the Principal Regulations

3. In Regulation 4 (liabilities to which the Scheme applies) of the Principal Regulations, after paragraph (1) insert—

“ (1A) For the purposes of paragraph (1)(a) (and with effect from 1st May 2014), loss, damage or injury which occurred on or after 1st April 1999 and before 1st May 2014, and which—

(a) before 1st May 2014 was not loss, damage or injury arising out of the carrying out of any relevant function of that member; but

(b) would have been loss, damage or injury arising out of the carrying out of any relevant function of that member, had the change to the definition of “relevant function” in regulation 1(2) that was made on 1st May 2014 been made before the loss, damage or injury occurred,

is loss, damage or injury arising out of the carrying out of any relevant function of that member. ” .

Amendment of regulation 7 of the Principal Regulations

4. —(1)Regulation 7 (termination of membership) of the Principal Regulations is amended as follows.

(2) In paragraph (1), for “12” substitute “7”.

(3) After paragraph (3), insert—

“ (4) Where a member is no longer an eligible body the Secretary of State may terminate that member’s participation in the Scheme with immediate effect. ” .

Amendment of regulation 8 of the Principal Regulations

5. —(1)Regulation 8 (members’ contributions to the Scheme) of the Principal Regulations is amended as follows.

(2) In paragraph (2), for “the Secretary of State shall have regard to”, substitute “the Secretary of State may have regard to”.

(3) In paragraph (3)(c), for “31st October” substitute “31st December”.

(4) For paragraph (6)(c), substitute—

“ (c) in relation to any subsequent membership year, at such time, or in such instalments at such times, and in such manner—

(i) as the Secretary of State and the member may, by no later than 1st March immediately preceding the membership year in question, agree, or

(ii) in default of such agreement by that date, as the Secretary of State may determine. ” .

Amendment of regulation 9 of the Principal Regulations

6. —(1)Regulation 9 (payments under the Scheme) of the Principal Regulations is amended as follows.

(2) In paragraph (1), for “paragraph (2)” substitute “paragraphs (2), (2A) and (2B)”.

(3) After paragraph (1), insert the following paragraph—

“ (1A) Where a payment falls to be made by any body which has at any time been a member of the Scheme in connection with a claim in respect of a qualifying liability which relates to a breach of the duty of care by that body whilst it was a member and, prior to the date of the termination of that member’s participation in the Scheme—

(a) the Secretary of State has agreed with the member that the member is to pay an amount under regulation 8(1) in respect of the membership year immediately preceding the date of the termination of the member’s participation in the Scheme determined by the Secretary of State to be sufficient to cover any qualifying liabilities which relate to a breach of the duty of care by the member during any membership year, but which fall to be met after the date of the termination of the member’s participation in the Scheme; and

(b) the member has, prior to the date of the termination of the member’s participation in the Scheme, either—

(i) paid the amount referred to in sub-paragraph (a); or

(ii) entered into an agreement with the Secretary of State to pay that amount in instalments after that date,

the Secretary of State may, subject to paragraphs (2A) and (2B), pay to or on behalf of that body an amount to be determined by the Secretary of State in accordance with paragraph (3). ” .

(4) Omit sub-paragraphs (2)(d) and (e).

(5) After paragraph (2) insert—

“ (2A) No payment is to be made under paragraphs (1) or (1A) except to such extent as the Secretary of State may determine, in respect of—

(a) any payment made by or liability admitted by any member without the Secretary of State’s consent;

(b) any liability of an amount which is less than that for the time being agreed by the Secretary of State and the member as the minimum amount in respect of which payment is to be made under the Scheme;

(c) any liability of an amount in excess of such amount for the time being agreed by the Secretary of State and the member as the maximum amount in respect of which a payment in respect of such liability may be made under the Scheme, to the extent of that excess; and

(d) any liability where the member has not complied with any condition imposed by the Secretary of State relating to that liability.

(2B) No payment is to be made under paragraphs (1) or (1A) in respect of any liability which is of a nature in respect of which the Secretary of State has in respect of all members and in respect of the relevant membership year determined that the same is not eligible for payment under the Scheme. ” .

(6) In paragraph (3), for “paragraph (1)”, substitute “paragraphs (1) and (1A)”.

(7) After paragraph (6) insert—

“ (7) In paragraphs (2A), (2B) and (3), “member” includes a body whose participation in the Scheme has terminated and which falls within paragraph (1A). ” .