UK Government Commits to Review Covid Vaccine Compensation Scheme

What changed

The UK government has committed to reviewing the Vaccine Damage Payment Scheme after the Covid Inquiry said its support and eligibility rules need urgent reform.

More than 24,000 Covid-related claims have been made. Just over 1% led to tax-free awards of £120,000, under a system requiring claimants to show they are at least 60% disabled.

Why it matters

For people injured or bereaved after vaccination, the promise of a review is not yet a change in support. Ministers have not set a timetable or said whether eligibility rules, award levels or medical assessments will change.

The current threshold is especially important. The scheme was designed around a 60% disability test, but the Inquiry said that approach does not work effectively for Covid vaccines. Baroness Hallett called for urgent reform, while ministers in England said they would work with the other UK nations and affected families.

The scheme’s costs add another pressure point. Since April 2022, it has cost £83m to run, while £32m has been paid in financial support. That imbalance will make the administration of the scheme part of the reform debate, not a footnote.

The government’s recognition matters because it accepts that vaccine injury and bereavement are real issues requiring attention. But the practical test is whether that recognition becomes a timetable, clearer rules and support families can actually access.