The government's programme to compensate people harmed by Covid vaccines and other immunisations has spent £83m on administration and medical assessments since April 2022, according to newly released figures. This expenditure far exceeds the £31.6m distributed in actual compensation to claimants, prompting calls from campaigners and watchdogs for urgent reform of the system.
Over 24,260 applications have been lodged with the Vaccine Damage Payment Scheme (VDPS) since November 2021, though only 264 have succeeded. The vast majority of claims relate to Covid vaccines, particularly the AstraZeneca jab, marking a dramatic shift from the scheme's original purpose when it was established in 1979 to cover injuries from all types of vaccination.
Why are running costs so high?
The National Health Service Business Services Authority (NHSBSA), which administers the scheme for the government, attributes the rising costs to the surge in claims received. Medical assessment expenses alone have climbed from £4.3m in 2022/23 to £19.3m in 2025/26, reflecting the volume of independent medical reviews required to determine whether applicants meet the threshold of "severe disablement."
The cost escalation has been particularly acute in the medical assessment sector. A national broadcaster's investigation revealed that the scheme's outsourced assessor contract was replaced after costs spiralled, with the new provider's five-year deal estimated at £27m. The previous assessor firm had been paid nearly £50m before its replacement, substantially exceeding the original budget estimate.
How much do successful claimants receive?
Those approved under the scheme receive a one-off, tax-free payment of £120,000. However, the application process is lengthy, often taking months or even years to complete. Each claim must be assessed by an independent medical practitioner to verify that the applicant has suffered severe disablement as a direct result of vaccination.
What are critics saying about the scheme?
The Taxpayers' Alliance, a think tank advocating for lower public spending, expressed concern that administrative costs have become disproportionate to actual victim compensation.
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,said John O'Connell, the organisation's chief executive. He called for the government to urgently review the scheme, eliminate "unnecessary bureaucracy," and redirect more resources to those the scheme was designed to help.
Vaccine Injured and Bereaved UK (VIBUK), a campaign group supporting affected families, has been equally critical.
It offers too little, too late, to too few and the cost of running it shows how inefficient it is,said Kate Scott, a representative of the group whose husband Jamie was severely disabled following his AstraZeneca vaccination. Scott urged the government to implement recommendations from module four of the Covid public inquiry and undertake comprehensive scheme reform.
What reforms have been recommended?
Baroness Heather Hallett, chair of the Covid public inquiry, recommended earlier this year that the scheme increase its payout levels and base compensation on the degree of injury sustained, rather than applying a fixed payment to all successful claimants. The government has committed to responding to these recommendations but has not yet announced a timeline.
The Department for Health and Social Care stated that it is
carefully consideringthe inquiry's proposals and
will respond shortly. Officials added that the department is working to accelerate claims processing and enhance the experience for applicants in the interim period.
How does this compare internationally?
Canada opened a parliamentary inquiry from 2026-09-08 to 2026-09-11 to hear testimony from people claiming Covid-vaccine injuries, providing an international comparison point as different nations grapple with compensation frameworks for vaccine-related harm.
What is the background to the scheme?
The Vaccine Damage Payment Scheme was created in 1979 to provide financial support to individuals who, in exceptional circumstances, suffered harm from any vaccine. For decades it remained a relatively small programme, but the pandemic triggered a dramatic increase in applications. The benefits of vaccination remain well documented, with the AstraZeneca Covid jab credited with saving millions of lives globally. However, for the minority who experienced adverse effects, the resulting injuries have been severe and life-altering.
What happens next?
The government is expected to publish its formal response to the Covid inquiry's vaccine-related recommendations in the coming weeks. The NHSBSA continues to work with the Department for Health and Social Care on cost management strategies for the scheme. Meanwhile, international scrutiny of vaccine compensation schemes continues, with parliamentary hearings scheduled in other jurisdictions to examine similar claims.
Key Facts:
- 24,260 claims have been filed since November 2021, with only 264 approved (1.1% success rate)
- Administrative and assessment costs (£83m) more than double the compensation paid out (£31.6m)
- Medical assessment costs have increased fourfold from £4.3m to £19.3m in three years
- Approved claimants receive a one-off tax-free payment of £120,000
- The Covid inquiry has recommended increasing payouts and basing them on injury severity
