The Vaccine Damage Payment Scheme (VDPS), established in 1979 to provide financial support to individuals harmed by vaccines, has seen a significant increase in costs and claims since the onset of the pandemic. Operating costs have exceeded compensation paid to claimants, drawing scrutiny from multiple parties concerned with the scheme’s efficiency and design.
Government data revealed that administrative costs and medical assessment expenses totaled £83m between April 2022 and March 2026, while only £31.6m has been distributed to claimants as of June 2026. The cost of medical assessments alone has grown substantially, rising from £4.3m in 2022/23 to £19.3m in 2025/26. The National Health Service Business Services Authority (NHSBSA), which administers the scheme, attributed the rising costs to an increased volume of claims received since taking over administration in November 2021, with 24,260 claims filed since that date, though only 264 have been approved. Successful applicants receive a one-time, tax-free payment of £120,000, with the review process extending over several months or years.
The sharp rise in applications stems largely from claims related to Covid vaccines, particularly the AstraZeneca jab. Critical voices have emerged regarding the scheme’s structure and effectiveness. The Taxpayers’ Alliance called for an urgent government review, arguing that administrative costs appeared excessive relative to victim compensation. Campaign group Vaccine Injured and Bereaved UK characterized the scheme as unfit for purpose, stating it delivers “too little, too late, to too few.” Earlier in the year, the Covid Inquiry chair recommended increasing payouts and basing them on the degree of injury sustained.
The Department for Health and Social Care stated it is examining recommendations from the Covid Inquiry and said it will respond shortly. Officials indicated efforts to expedite claims processing and enhance the applicant experience. The NHSBSA similarly noted ongoing cooperation with the government on cost management for the scheme.
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