Running costs of Covid vaccine damage scheme double the amount paid to victims.

The escalating financial burden of the Vaccine Damage Payment Scheme (VDPS), designed to compensate individuals severely harmed by Covid-19 vaccinations, has dramatically outpaced the actual payouts to victims. New figures, revealed for the first time in response to a parliamentary question posed by Sir Christopher Chope, a Conservative MP, expose a stark imbalance between the administrative expenditure and the compensation disbursed. Health minister Dame Diana Johnson disclosed that an eye-watering £83 million has been allocated for staffing, administration, and crucial medical reviews between April 2022 and March 2026. This substantial sum dwarfs the total compensation awarded to date, highlighting a significant efficiency concern within the scheme.

The VDPS operates on a stringent process where claimants must undergo a thorough review by an independent medical professional to establish they meet the threshold of "severe disablement." Only upon successful verification of this severe disablement are applicants eligible for a one-off, tax-free payment of £120,000. However, this process is notoriously protracted, often stretching over months, and in some cases, years. The cost of these essential medical assessments alone has seen a precipitous increase, soaring from £4.3 million in the 2022/23 financial year to a projected £19.3 million by 2025/26, according to recently published government data. This escalating expense for assessments directly contributes to the overall ballooning costs of the scheme.

As of the latest available data up to June 2026, the cumulative amount paid out in damages to individuals who have tragically died or suffered severe injuries following Covid-19 vaccination stands at £31.6 million. This figure, while significant for the recipients, is considerably less than half of the projected administrative and operational costs for the same period. The NHS Business Services Authority (NHSBSA), responsible for managing the VDPS on behalf of the government, attributes the surge in these running costs directly to the increasing volume of claims received. "The administrative costs and medical assessor supplier costs of the VDPS are driven by the number of claims received," stated an NHSBSA spokesperson. "We have seen a significant increase in the number of claims received since taking over administration of the VDPS in November 2021." This indicates a growing number of individuals seeking recourse, placing further strain on the scheme’s resources.

The inadequacy and inefficiency of the VDPS have drawn sharp criticism from campaign groups representing those affected. Vaccine Injured and Bereaved UK (VIBUK), an organization dedicated to supporting families impacted by vaccine injuries, has been vocal in its condemnation. "It offers too little, too late, to too few and the cost of running it shows how inefficient it is," declared Kate Scott, a representative for VIBUK and a personal victim of the scheme’s failings. Her husband, Jamie, was left severely disabled by the AstraZeneca Covid vaccine, a personal experience that fuels her advocacy. Scott has urged the government to take decisive action by implementing the recommendations emerging from Module Four of the ongoing Covid public inquiry, specifically calling for a fundamental reform of the VDPS.

Echoing these calls for reform, Baroness Heather Hallett, the chair of the Covid inquiry, had previously recommended an increase in the lump-sum payout, advocating for it to be directly tied to the severity of the injury suffered. This suggestion aims to provide more equitable compensation that reflects the profound impact of vaccine-related harm. The government is expected to formally respond to these crucial recommendations in the near future, a response that is keenly awaited by victims and their advocates. The BBC has previously shed light on the substantial sums being paid to an external medical provider tasked with conducting the extensive medical assessments, further underscoring the significant financial outlay associated with the scheme’s operational demands.

The financial implications of the VDPS have also drawn the attention of taxpayer advocacy groups. The Taxpayers’ Alliance, a prominent right-leaning think tank, has expressed dismay at the disparity between operational costs and victim payouts. John O’Connell, the organization’s chief executive, stated that the public would likely be "stunned" to learn that the running costs of the scheme appear to be "far more than has actually been paid out to those harmed." He questioned the value for money delivered by the current system, especially when administrative expenditures reach tens of millions of pounds. "When administrative costs are running into tens of millions, ministers need to explain why the system is so expensive and whether victims are getting value from it," O’Connell urged. He has called for an urgent review of the scheme, with a clear objective to curtail "unnecessary bureaucracy" and ensure that a greater proportion of the allocated funds directly benefits those who were intended to be helped.

In response to the mounting concerns and the data revealed, the Department of Health and Social Care (DHSC) has acknowledged the situation. A spokesperson for the DHSC stated that the department is "carefully considering" the recommendations from the COVID-19 Inquiry regarding the reform of the VDPS and "will respond shortly." The government has indicated its commitment to improving the scheme’s efficacy, noting that efforts are underway to "speed up claims and improve the experience for applicants." Concurrently, the NHSBSA has reiterated its commitment to working "closely" with the government in "managing the costs of the VDPS," signaling a collaborative approach to address the financial challenges and operational inefficiencies that have come to light. The future of the VDPS hinges on the government’s response to the inquiry’s recommendations and its willingness to implement meaningful reforms that balance the need for thorough assessment with the imperative of timely and adequate compensation for those severely injured by Covid-19 vaccines. The current financial trajectory suggests that without significant intervention, the cost of running the scheme will continue to far exceed the support provided to its intended beneficiaries.