Administrative and medical assessment costs for the government’s vaccine damage compensation scheme have significantly exceeded the amount distributed to injured claimants, according to data released in response to a parliamentary inquiry.
Between April 2022 and March 2026, total expenditures for the Vaccine Damage Payment Scheme reached £83m, with operating costs and medical reviews accounting for the majority of spending. In comparison, payouts to approved claimants totaled £31.6m as of June 2026. Medical assessment costs alone increased substantially, rising from £4.3m in 2022/23 to £19.3m in 2025/26.
Since November 2021, the scheme has received 24,260 claims, though only 264 have been approved. The majority of recent applications relate to Covid vaccines, particularly the AstraZeneca jab. Successful applicants receive a one-time, tax-free payment of £120,000, though the review process can extend over months or years.
The National Health Service Business Services Authority, which administers the scheme, attributed rising costs to increased claim volumes. However, critics argue the system lacks efficiency. The Taxpayers’ Alliance called for an urgent government review to reduce administrative expenses and redirect more funding to claimants. Vaccine Injured and Bereaved UK characterized the scheme as inadequate, describing it as providing “too little, too late, to too few.”
The government stated it is examining recommendations from the Covid public inquiry regarding scheme reforms, including proposals to increase payouts and adjust them based on injury severity. Meanwhile, efforts are underway to accelerate claims processing and improve the applicant experience.
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