The Vaccine Damage Payment Scheme, which provides financial support to individuals harmed by vaccines, has revealed substantial operational costs relative to compensation disbursed. Since April 2022 through March 2026, the scheme has expended £83m on staffing, administration, and medical reviews. In comparison, only £32m has been distributed to claimants during this period.
The scheme has processed 24,260 applications since November 2021, though only 264 have been approved. Medical assessment costs have risen significantly, increasing from £4.3m in 2022/23 to £19.3m in 2025/26. Approved claimants receive a one-time, tax-free payment of £120,000, though the application process can extend over several months or years. The National Health Service Business Services Authority, which administers the scheme, attributed rising operational costs to the increased volume of claims received since taking over administration in November 2021.
Most applications are now connected to Covid vaccines, particularly the AstraZeneca jab, marking a significant shift since the scheme’s establishment in 1979. The Taxpayers’ Alliance think tank and other critics have questioned the cost-effectiveness of the program, with campaign groups arguing the scheme does not adequately serve those affected. The Covid Public Inquiry chair previously recommended increasing payouts and restructuring compensation based on the degree of injury sustained.
The Department for Health and Social Care stated it is reviewing recommendations from the COVID-19 Inquiry regarding potential scheme reforms and indicated efforts to expedite claim processing. The government said it would respond to the inquiry’s recommendations shortly while continuing to work with the NHS Business Services Authority on cost management.
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