Compensation claims related to potholes on roads submitted to British councils increased by 90% between 2021 and 2024, according to an analysis by the RAC motoring policy group.
The report indicated that only half of the claims submitted by motorists in 2024 resulted in compensation payments. However, the RAC noted that the number of claims decreased in 2024 compared to the previous year.
The Local Government Association (LGA) stated that increasing “continuous pressure” on budgets is affecting councils’ ability to repair roads, while the Department for Transport said the government would inject £7.3 billion over the next four years to improve road surfaces.
Potholes have become a major concern for many drivers. Repair bills can be costly, and they can cause injuries to passengers, cyclists, or pedestrians.
The RAC said analyzed data indicates that 53,015 compensation claims were submitted to 177 local authorities in 2024. This figure had risen from 27,731 in 2021, although it recorded a decrease from the 56,655 recorded in 2023. In 2024, only 26% of claims led to a compensation payment, with the average amount received by claimants reaching £390.
The RAC estimates that a typical repair bill for a family car that has suffered significant damage—more than just tire damage—resulting from hitting a pothole is approximately £590. Potholes cause damage to steering pistons and suspension springs, and can also cause wheel deformation.
Simon Williams, head of policy at the RAC, told The Portal: “There seem to be different standards for councils to define what counts as a pothole. Often, it must be deeper than four centimeters and several centimeters in diameter.” He continued: “If a car hits one, it can cause a real jolt to the vehicle and serious damage… It’s not just damage to cars; they are also a serious hazard to road safety, especially for those on a bicycle.”
The RAC surveyed 207 councils regarding pothole compensation claims. Among the 177 that responded, Derbyshire County Council saw the largest increase in claims over the three-year period, rising from 224 to 3,307. Glasgow and Oxfordshire councils saw the next largest increases.
A spokesperson for the Department for Transport said the government would invest £7.3 billion over the next four years to support councils in resurfacing their roads. The spokesperson added: “This will positively impact years of underinvestment in our road network, allowing local authorities to move away from costly, short-term repairs and direct investments toward proactive maintenance and preventing potholes from forming in the first place.”
A spokesperson for the Local Government Association said that “increasing continuous pressure on budgets has affected their ability to do this as much as they would hope” regarding road maintenance. He added: “New road treatments will help divert water from the gradual degradation of local roads, but it will take some time to move from just filling potholes in response to compensation laws to a more proactive and sustainable approach.”
Derbyshire Council said it has seen a 72% decrease in the rate of compensation claims since May 2025, while Glasgow Council said it has seen a “significant decrease” this year compared to 2024. Oxfordshire Council said it has spent approximately £14.5 million since April on its largest surface dressing program—a treatment aimed at preventing potholes—designed to last “at least 20 years.”
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