Compensation claims linked to pothole damage have almost doubled in just three years, adding further strain to local authority highways and legal teams at a time of intense financial pressure.
New analysis by the RAC shows pothole-related claims submitted to 177 councils across England, Scotland and Wales rose by 91% between 2021 and 2024, increasing from 27,731 to 53,015. The data, obtained through Freedom of Information requests, covers authorities responsible for nearly 250,000 miles of local roads.
Some councils have seen particularly sharp rises. Derbyshire County Council recorded the biggest increase, with claims jumping from 224 in 2021 to 3,307 in 2024. Glasgow City Council more than doubled from 1,140 to 2,794, while Oxfordshire County Council saw claims rise from 488 to 1,941 over the same period.
While the longer-term trend is upwards, the RAC notes a slight year-on-year improvement. Claims fell by 6% from 56,655 in 2023 to 53,015 in 2024, offering a modest sign of stabilisation.
Despite the surge in applications, successful claims remain the exception. In 2024, councils settled just 26% of claims, paying out 13,832 cases in total. The RAC estimates this cost authorities around £3.6m, with an average payout of £390 per claim – significantly below the £590 average repair bill faced by drivers when pothole damage extends beyond a simple puncture.
Rejection rates were particularly high in many areas. Forty-five per cent of councils refused more than 90% of claims, with several authorities – including Gloucestershire, Worcestershire and Medway – turning down 99% of requests.
The figures underline the operational challenge facing councils: balancing rising public expectations, growing network deterioration and constrained maintenance budgets, while managing legal risk and reputational impact as roads continue to degrade.
RAC head of policy Simon Williams said: ‘The massive three-year rise in pothole compensation claims made by drivers shows what a huge task it is returning the roads to a respectable standard. But it’s far from an even picture across the country, with just a handful of councils receiving the lion’s share of claims from beleaguered motorists.
‘Drivers are still suffering the consequences of years of neglect to Britain’s local road network. But even if you submit a compensation claim the odds aren’t good, with around 40,000 requests for reimbursement turned down in 2024 alone.
‘And with some councils not responding to our request for data, there’s every chance that we’re only seeing the tip of the iceberg when it comes to the claims that have been settled. But positively, councils received slightly fewer pothole compensation claims in 2024 than they did they year before.
‘We’re now hopeful the dial will really begin to shift as highways authorities in England were this year given a record £1.6bn by the Government for road maintenance. And for the first time they’ve been required to show how much vital preventative maintenance they’ll be carrying out to stop potholes forming in the first place.
‘On top of this, the Government has now announced multi-year settlements which will give councils the certainty they need to plan and deliver better maintenance programmes. This can only be a good thing.
‘So, while the figures we’ve analysed are a cause for concern, we hope pothole compensation claims will begin to decline as local authorities increase the amount of preventative surface dressing work on their roads.’
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