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Vaccine damage scheme running costs double payout amount

UK vaccine injury scheme running costs reach £83m, more than double the £32m paid out to claimants according to official data.

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Inewgen
12 Sep 2026Source: BBC Health3 min read (0 views)
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Vaccine damage scheme running costs double payout amount

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  • Vaccine Damage Payment Scheme running costs reach £83 million.
  • Total payouts to victims stand at just £32 million since April 2022.
  • Claim numbers surge to 24,260 following the Covid-19 pandemic.
  • NHSBSA cites a massive increase in caseloads for rising medical assessment costs.

The UK government scheme designed to support individuals severely injured by vaccines is facing mounting scrutiny as figures reveal that operational expenses have more than doubled the total amount actually distributed to victims.

The comprehensive financial data was published following a parliamentary inquiry initiated by backbench Conservative MP Sir Christopher Chope. In response, health minister Dame Diana Johnson disclosed that a total of £83 million has been allocated to staffing, administrative duties, and independent medical evaluations between April 2022 and March 2026.

£83mVDPS Operating Costs
£32mTotal Victim Payouts
24,260Total Claims Filed

In stark contrast, the total compensation disbursed to individuals who suffered severe injuries or fatalities following a Covid-19 vaccination rests at approximately £31.6 million. To qualify for the scheme, applicants must undergo rigorous assessments by independent physicians to verify that they meet the strict threshold of severe disablement, qualifying them for a single tax-free lump sum of £120,000.

British health department office desk

Stock photo for illustration only, not from the actual event

The NHS Business Services Authority (NHSBSA), which administers the program on behalf of the state, explained that escalating expenses are directly tied to an unprecedented influx of applications. Since taking over administration in November 2021, the agency has processed 24,260 claims, though only 264 applications have been successfully approved.

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"The administrative costs and medical assessor supplier costs of the VDPS are driven by the number of claims received."

NHSBSA

Campaign groups such as Vaccine Injured and Bereaved UK (VIBUK) have criticized the framework, arguing it remains fundamentally inadequate for affected families. They continue to urge policymakers to implement recommendations put forward by module four of the Covid public inquiry, led by Baroness Heather Hallett, which suggested scaling compensation based on the specific degree of injury sustained.

Originally established in 1979, the Vaccine Damage Payment Scheme (VDPS) was designed to handle rare adverse reactions to traditional immunizations. However, the sheer volume of claims generated during the pandemic overwhelmed the legacy framework, pushing processing times into months or years and dramatically driving up administrative overhead.

The government maintains that it is actively working to streamline the application process and minimize delays for families while preparing its formal response to the inquiry recommendations.

Source: BBC Health

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