The Vaccine Damage Payment Scheme, established to provide financial support to individuals harmed by vaccines, has revealed significant discrepancies between operational costs and victim compensation since the pandemic intensified claims activity.
Between April 2022 and March 2026, the scheme spent £83m on staffing, administration, and medical assessments, while distributing £31.6m in payments to claimants as of June 2026. The costs associated with independent medical evaluations rose substantially, increasing from £4.3m in 2022/23 to £19.3m in 2025/26. Since November 2021, when the National Health Service Business Services Authority assumed administration of the program, the scheme has processed 24,260 claims, of which 264 have been successful.
Applicants approved under the scheme’s criteria for “severe disablement” receive a one-time, tax-free payment of £120,000, though the assessment process can extend over months or years. The majority of recent claims relate to Covid vaccines, particularly the AstraZeneca jab. The NHSBSA attributed rising administrative and assessment costs to the increased volume of claims received since taking over program management.
Critics have questioned the scheme’s efficiency and scope. Campaign group Vaccine Injured and Bereaved UK characterized the program as unsuitable, stating it “offers too little, too late, to too few.” The Taxpayers’ Alliance think tank called for an urgent government review to reduce bureaucratic expenses and redirect more resources to beneficiaries. Earlier this year, the Covid Inquiry chair recommended increasing payouts and restructuring compensation based on injury severity.
The Department for Health and Social Care indicated it is reviewing the Covid Inquiry’s reform recommendations and stated efforts are underway to accelerate claims processing and enhance the applicant experience.
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