Chronological coverage updated 11th September 2026 18:45.
Update 1 · 11th September 2026
Running Costs for UK Vaccine Damage Scheme Exceed Payouts to Injured Patients
The operational expenditure for the UK government's Vaccine Damage Payment Scheme (VDPS) has more than doubled the total financial compensation delivered to victims injured by vaccines, according to data released in response to a parliamentary question.
Between April 2022 and March 2026, the government spent £83 million on administrative staffing, overheads, and medical reviews. Over a comparable timeframe extending to June 2026, approved claimants who suffered severe disability or bereavement following vaccination received a combined total of £31.6 million.
The Vaccine Damage Payment Scheme processed 24,260 claims between November 2021 and mid-2026, with 264 applications approved for payout..
Surging claims and escalating assessment costs
Established in 1979, the VDPS provides a one-off, tax-free payment of £120,000 for individuals who suffer severe disablement—defined as a 60% disability threshold—as a result of routine vaccinations. Following the rollout of the Covid-19 vaccination programme, applications multiplied dramatically, with the vast majority of claims citing the AstraZeneca Covid-19 vaccine.
To handle the unprecedented volume of cases, the NHS Business Services Authority (NHSBSA), which took over administration of the scheme in late 2021, contracted external medical providers to assess whether applicants met the strict statutory criteria. Figures disclosed by health minister Dame Diana Johnson show that medical review fees alone rose from £4.3 million in the 2022/23 financial year to £19.3 million in 2025/26.
Total administrative and medical assessment running costs for the VDPS reached £83 million between April 2022 and March 2026..
Growing pressure for scheme reform
The wide disparity between operational overheads and direct compensation has prompted swift criticism from public expenditure watchdogs and advocacy groups representing injured families, who describe the application process as drawn-out and overly bureaucratic.
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”.
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”.
Campaigners are urging ministers to adopt recommendations made by Baroness Heather Hallett, chair of the UK Covid-19 Inquiry, who advocated reforming the system to scale financial awards based on the actual severity of harm suffered rather than relying on a rigid single-tier threshold.
- Running costs for the Vaccine Damage Payment Scheme reached £83m, compared to £31.6m awarded to injured claimants.
- Out of 24,260 submitted applications, only 264 have been approved for the £120,000 standard payout.
- Public inquiry recommendations advocate restructuring payouts based on individual injury severity.
