A government compensation scheme for individuals injured by Covid vaccines and other immunizations has revealed significant operational expenses, according to newly disclosed financial data. Between April 2022 and March 2026, the Vaccine Damage Payment Scheme (VDPS) incurred £83m in staffing, administrative, and medical review costs while distributing £31.6m in payments to approved claimants.
The scheme, originally established in 1979 to address rare vaccine-related injuries across all vaccine types, has experienced a substantial surge in applications since the pandemic. As of June 2026, the system had received 24,260 claims since November 2021, with only 264 receiving approval. The majority of recent applications relate to Covid vaccines, particularly the AstraZeneca jab. Successful claimants receive a one-time tax-free payment of £120,000, though the application process can extend over months or years and requires independent medical review to establish “severe disablement.”
Medical assessment costs have risen significantly, 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 increasing costs to growing claim volumes. Multiple observers have criticized the program’s structure and efficiency, including campaign groups supporting vaccine-injured individuals and fiscal watchdog organizations.
Advocacy group Vaccine Injured and Bereaved UK characterized the scheme as inadequate, stating it “offers too little, too late, to too few.” The group referenced recommendations from the Covid public inquiry’s fourth module suggesting increased payouts based on injury severity. The Department for Health and Social Care indicated it is reviewing inquiry recommendations and working to accelerate claim processing and improve applicant experience.
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