The Vaccine Damage Payment Scheme, established in 1979 to support people injured by vaccines, has seen its administrative and operational costs substantially exceed compensation payouts in recent years. Government figures released through a parliamentary question reveal that between April 2022 and March 2026, total expenditure on the scheme reached £83m, with this figure encompassing staffing, administration, and medical assessment costs.
In contrast, actual financial support distributed to claimants totaled £32m during the same period, meaning operational expenses were more than double the amount reaching victims. The scheme processes applications by requiring independent medical review to determine whether applicants meet the threshold for “severe disablement,” with successful claimants receiving a one-time tax-free payment of £120,000. Medical assessment costs have risen significantly, increasing from £4.3m in the 2022/23 financial year to £19.3m in 2025/26.
Since November 2021, the scheme has received 24,260 claims, though only 264 have been approved. The vast majority of applications are now connected to Covid vaccines, particularly the AstraZeneca jab, representing a sharp increase from the scheme’s historical caseload. The NHS Business Services Authority, which administers the program, attributed rising costs to the surge in claim numbers.
Multiple organizations have criticized the scheme’s efficiency. The Taxpayers’ Alliance called for urgent government review and reduction of bureaucratic overhead. Vaccine Injured and Bereaved UK characterized the scheme as unfit for purpose, noting it provides “too little, too late, to too few.” Earlier this year, the Covid public inquiry’s chair recommended increasing payouts and basing them on injury severity. The government stated it is considering these recommendations and working to accelerate claims processing.
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