New figures have revealed the financial scope of the Vaccine Damage Payment Scheme (VDPS), which provides support to individuals harmed by vaccines. Between April 2022 and March 2026, the scheme cost £83m to operate, with expenses covering staffing, administration, and medical assessments. This administrative expenditure has exceeded the actual compensation distributed to claimants, which totaled £31.6m as of June 2026.
The VDPS was originally established in 1979 to assist people who experienced rare adverse effects from vaccines. Since the pandemic, applications have increased substantially, with 24,260 claims filed since November 2021, though only 264 have been approved. The vast majority of recent applications relate to Covid vaccines, particularly the AstraZeneca jab. Under the scheme’s rules, applicants must undergo assessment by an independent doctor to determine if they meet the threshold for “severe disablement” before receiving a one-off tax-free payment of £120,000. Medical assessment costs have risen considerably, from £4.3m in 2022/23 to £19.3m in 2025/26.
The administrative costs have drawn criticism from multiple quarters. The Taxpayers’ Alliance called for an urgent government review, citing concerns that operating expenses appear disproportionate to victim payouts. Vaccine Injured and Bereaved UK, a campaign group supporting affected families, characterized the scheme as unfit for purpose, describing it as offering “too little, too late, to too few.” The organization referenced recommendations from the Covid public inquiry, which suggested increasing payouts and basing them on the degree of injury suffered.
The NHSBSA, which administers the scheme, attributed rising costs to the surge in claims received since assuming administration responsibilities in November 2021. The Department for Health and Social Care stated it is “carefully considering” inquiry recommendations and working to expedite claims processing. Officials indicated they would respond to proposed reforms in the coming period.
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