The Vaccine Damage Payment Scheme, established in 1979 to compensate individuals injured by vaccines, has seen its operational costs significantly outpace payouts in recent years. New figures obtained through a parliamentary question reveal that running costs reached £83m between April 2022 and March 2026, compared to £31.6m distributed to claimants during the same period. The scheme’s expenses include staffing, administrative functions, and independent medical assessments required to determine eligibility.
Since the pandemic began, applications to the scheme have increased substantially, with 24,260 claims filed since November 2021. However, only 264 applications have been approved for payment. The vast majority of recent claims are linked to Covid vaccines, particularly the AstraZeneca jab. Successful applicants receive a one-off, tax-free payment of £120,000, though the application process can extend over months or years.
Medical assessment costs have risen sharply, increasing from £4.3m in 2022/23 to £19.3m in 2025/26. The National Health Service Business Services Authority, which administers the scheme, attributes the rising costs to the increased volume of claims received since assuming administration responsibilities in November 2021.
Criticism of the scheme’s efficiency has come from multiple quarters. The Taxpayers’ Alliance called for urgent government review, arguing that the administrative burden appears disproportionate to the benefits delivered. Vaccine Injured and Bereaved UK characterized the scheme as unsuitable for purpose, describing it as offering “too little, too late, to too few.” Earlier this year, the COVID-19 Inquiry’s chair recommended increasing payouts and restructuring compensation based on the degree of injury sustained.
The Department for Health and Social Care stated it is considering the inquiry’s reform recommendations and working to accelerate claim processing and improve the applicant experience. The NHSBSA indicated it continues coordinating with the government to manage scheme costs.
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