New figures released through a parliamentary question reveal that the UK’s Vaccine Damage Payment Scheme (VDPS) has cost substantially more to administer than it has paid out in compensation to injured parties. Between April 2022 and March 2026, total expenditure reached £83m, compared with approximately £32m distributed to claimants during the same period.
The VDPS, originally established in 1979 to support individuals harmed by vaccines, has seen a dramatic increase in applications since the pandemic. As of June 2026, 24,260 claims had been submitted, though only 264 received approval. The vast majority of recent claims relate to Covid vaccines, particularly the AstraZeneca jab. Approved claimants receive a one-time, tax-free payment of £120,000, with the process sometimes requiring months or years to complete.
Medical assessment costs have risen substantially, climbing 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 increased claim volumes. The organization stated it has worked to manage expenses while handling the surge in applications since taking over administration in November 2021.
Critics, including the Taxpayers’ Alliance think tank and the campaign group Vaccine Injured and Bereaved UK, have questioned the scheme’s efficiency and effectiveness. They argue that administrative overhead is disproportionately high and call for structural reforms to streamline operations and increase payouts. The Covid Inquiry’s chair previously recommended increasing compensation amounts and basing them on injury severity. The government indicated it is reviewing the inquiry’s recommendations and working to accelerate claim processing and improve applicant experience.
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