The NHS Trusts Finance Manual has been amended so that a settlement agreed at judicial mediation is now a special payment that does not require SHA and/or Treasury approval. While Treasury approval has not been required in the past where a tribunal has made an award of compensation, this is a new development in respect of judicial mediation.

Judicial mediation is not available in all tribunal cases but may be offered at a case management discussion where a full hearing has been fixed for a duration of at least three days and where the case involves at least one element of discrimination. Both parties have also got to agree to utilising judicial mediation.

This amendment will mean that where judicial mediation is available it can be a method through which a commercial settlement can be achieved for NHS bodies without the need for prior Treasury approval.