Vaccine Damage Payment Scheme Running Costs More Than Double Amount Paid to Victims

Update 1 · 11th September 2026

Running Costs of UK Vaccine Injury Scheme Exceed Payouts to Victims

The UK government's administration and medical assessment expenses for managing vaccine injury claims have reached more than double the total financial compensation paid out to injured individuals and grieving families. Official data disclosed in response to a parliamentary question shows that running costs for the Vaccine Damage Payment Scheme reached £83 million between April 2022 and March 2026, while total compensation awarded to victims of vaccine harm stood at £31.6 million as of June 2026.

The Vaccine Damage Payment Scheme was originally established in 1979 to offer financial assistance to individuals severely disabled by vaccines. However, application volumes spiked sharply following the rollout of Covid-19 immunisation drives, with the vast majority of recent claims linked to the AstraZeneca vaccine and other pandemic jabs. Although the AstraZeneca vaccine saved millions of lives globally, rare severe adverse reactions have left applicants facing long delays for assessment.

£83 million was spent on staffing, administration, and medical reviews for the Vaccine Damage Payment Scheme between April 2022 and March 2026, compared to £31.6 million paid out in damages. — according to Department for Health and Social Care.

Out of 24,260 claims made to the Vaccine Damage Payment Scheme since November 2021, only 264 have been approved for payment..

Process Bottlenecks and Assessment Costs

Under scheme rules, applicants must undergo an evaluation by an independent medical practitioner to confirm whether their injury meets the threshold of severe disablement, defined as 60% disability. Successful claimants receive a one-off tax-free sum of £120,000. Rising claim volumes have escalated processing costs significantly, with supplier fees for medical assessments surging from £4.3 million in the 2022/23 financial year to £19.3 million in 2025/26.

BBC News reportedly quoted John O'Connell (chief executive of the Taxpayers' Alliance) as saying: “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”.

Calls for Reform and Government Response

Advocacy groups representing injured individuals argue that the current framework is overly complex and fails to adequately support those affected. Recommendations from module four of the Covid-19 public inquiry chaired by Baroness Heather Hallett suggested expanding financial awards and tailoring payments to the precise severity of the injury sustained.

BBC News reportedly quoted Kate Scott (representative for Vaccine Injured and Bereaved UK) as saying: “It offers too little, too late, to too few and the cost of running it shows how inefficient it is”.

The NHS Business Services Authority, which manages the scheme on behalf of the government, noted that operating costs are directly driven by the high volume of incoming applications. The Department for Health and Social Care stated that it is carefully considering the public inquiry's recommendations, while working to accelerate processing times and improve applicant experience.

• The running costs of the UK vaccine harm scheme reached £83m compared to £31.6m in victim payouts.
• Only 264 out of 24,260 claims submitted since November 2021 have resulted in compensation awards.
• Ministers are reviewing recommendations from the Covid inquiry to reform payment structures and reduce processing delays.