The Vaccine Damage Payment Scheme, established in 1979 to compensate people harmed by vaccines, has revealed significant cost disparities between operational expenses and victim compensation. According to newly disclosed figures provided in response to a parliamentary question, the scheme spent £83m on staffing, administration, and medical reviews between April 2022 and March 2026. In comparison, total payouts to those injured or killed by Covid vaccines reached £31.6m as of June 2026.
Since November 2021, the scheme has received 24,260 claims, though only 264 have been successful. The dramatic increase in applications followed the Covid-19 pandemic, with the majority now related to the AstraZeneca vaccine and other Covid inoculations. Under the scheme’s guidelines, claimants must undergo independent medical review to establish “severe disablement” before becoming eligible for a one-time, tax-free payment of £120,000. These assessments have become increasingly costly, rising from £4.3m in 2022/23 to £19.3m in 2025/26.
The National Health Service Business Services Authority, which administers the scheme for the government, attributed rising costs to the increased volume of claims received. However, multiple organizations have criticized the scheme’s efficiency. The Taxpayers’ Alliance called for an urgent government review to address the administrative burden and redirect resources toward beneficiaries. Vaccine Injured and Bereaved UK, a support group for affected families, described the scheme as “not fit for purpose,” stating it delivers “too little, too late, to too few.”
The Covid public inquiry chair previously recommended increasing payouts and basing compensation on the degree of injury sustained. The Department for Health and Social Care indicated it is considering these recommendations and aims to respond shortly while working to expedite claims processing.
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