Pothole Compensation Claims Soar by 91% in Three Years, RAC Data Reveals

Pothole compensation claims submitted to 177 local authorities have surged by 91% over the past three years, jumping from 27,731 in 2021 to 53,015 in 2024, according to new analysis by the RAC.

The figures come from a Freedom of Information request sent to 207 councils across England, Scotland, and Wales, covering nearly a quarter of a million miles of local roads. Of the 177 councils that responded, Derbyshire County Council saw the steepest rise in claims, which rocketed from 224 in 2021 to 3,307 in 2024. Glasgow City Council ranked second, with claims more than doubling from 1,140 to 2,794, followed by Oxfordshire County Council, where claims increased from 488 to 1,941 over the same period.

While the three-year increase is stark, the data also shows a slight year-on-year reduction. Councils that responded to the RAC’s request received 56,655 claims in 2023, meaning 2024 saw a six percent drop to 53,015.

Despite the high number of claims, only a fraction are successful. In 2024, 173 councils settled just 26% of claims, paying out 13,832 of the 53,015 submitted. The RAC estimates that councils collectively paid around £3.56 million in compensation, averaging £390 per claim. This is lower than the £590 average cost for repairing a family car damaged by a pothole, highlighting the financial burden drivers still face.

Merton Borough Council paid the highest average compensation per claim, with £2,267 for each of five claims, totalling around £11,335. Meanwhile, Derbyshire paid out the largest overall sum, estimated at £605,235, based on an average of £257 per settled claim. In Scotland, Glasgow paid an average of £253 per claim, equating to £154,724 in total, while in Wales, Wrexham paid the most per claim at £2,026, amounting to £76,991 overall.

Financial pressures are a real concern for drivers: earlier this year, an RAC survey found that nearly 40% of motorists would struggle to cover an unexpected repair bill of £500—less than the typical cost of fixing pothole-related damage.

The data underscores just how difficult it can be for drivers to secure compensation. Across the 177 councils, 97% rejected more than 90% of claims submitted in 2024. Gloucestershire, Worcestershire, Medway, Carmarthenshire, and Telford all refused 99% of claims received, while Bridgend was the only council to pay out 100% of a smaller number of requests (52 claims).

When adjusted for road network length, Glasgow received more than two claims per mile of its 1,203-mile network.

Four authorities—Staffordshire, Derbyshire, Edinburgh, and Bury Metropolitan—received roughly one claim for every mile of road. Surrey, which had the highest claims per mile in 2023, saw one claim for every two miles of its 3,415-mile network.

Simon Williams, RAC head of policy, said:“The huge rise in pothole compensation claims over three years highlights the scale of the challenge facing local roads. Drivers are still experiencing the impact of years of neglect, yet even when they submit claims, the odds of success remain very low, with around 40,000 claims rejected in 2024 alone.

“With some councils not responding to our requests for data, it’s likely we are only seeing part of the picture.

The slight decline in claims in 2024 is a positive sign, but more needs to be done.”

Williams welcomed recent government funding for road maintenance: “Highways authorities in England received a record £1.6 billion for maintenance this year, and they are now required to demonstrate the preventative work they will carry out to stop potholes forming. Multi-year funding settlements give councils the certainty to plan better maintenance programmes, which should help reduce the number of claims over time.”