UK government to overhaul Covid vaccine compensation scheme after inquiry findings

The UK government announced on Thursday that it will overhaul the Covid vaccine compensation scheme after criticism from the Inquiry. The plan targets the Vaccine Damage Payment Scheme (VDPS), which pays financial support to people who claim injury or bereavement linked to Covid vaccines. Ministers said the review will be “fit for purpose and delivered effectively.”

The move follows the Covid Inquiry’s fourth report, which urged urgent reform of the scheme. The Inquiry found that only about 1 % of the 24,000 claims lodged so far have led to a one‑off tax‑free award of £120,000. It also highlighted that the scheme requires claimants to prove at least 60 % disability, a threshold that does not work well for Covid vaccine cases. Campaigners have pushed for change for years, arguing that the current system does not meet the needs of those harmed.

Vaccine Injured and Bereaved UK welcomed the government’s acknowledgement that vaccine injury and bereavement are real, but said the statement falls short of a concrete commitment. “There is a real difference between saying you will look at something and committing to deliver it,” the group said, pointing out the absence of a timetable or clear outcome. The government, meanwhile, noted that the scheme cost £83 million to run since April 2022, with administration and medical assessments costing more than double the £32 million paid out in support payments. Ministers promised to work closely with the other UK nations and the families affected to fix the problems.

What comes next is unclear. The government said it will review the scheme’s structure, but has not set a deadline for reforms. If the changes go through, the VDPS could become more responsive and affordable, potentially reducing the administrative burden and speeding up payments. The debate highlights the tension between public health benefits and the need for fair support for those who suffered adverse effects from vaccination.