What is the Covid vaccine compensation scheme?

The government is to reform the scheme that provides financial support for those injured or bereaved by unusually severe reactions to Covid-19 vaccines, following recommendations by the chair of the Covid inquiry.

What is the scheme?

The government’s vaccine damage payment scheme is designed to provide a one-off, tax-free sum of £120,000 to those who can prove they became severely disabled as a result of taking a vaccine for a number of diseases, including Covid-19.

“Disablement is worked out as a percentage, and ‘severe disablement’ means at least 60% disabled,” said the government guide. “This could be a mental or physical disablement and will be based on medical evidence from the doctors or hospitals involved in your treatment.” Those with a family member who died as a result of their injuries can apply for a bereavement support payment.

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However, while more than 24,000 people have filed “Covid-related claims” with the vaccine damage payment scheme, only a little over 1% have received a pay-out so far, said the BBC. Most of the successful claims have related to the AstraZeneca vaccine.

What are the problems?

Critics say that the 60% disability threshold excludes many people who suffer a substantial, persistent condition that affects their ability to work, care for their family or lead a normal life.

For example, nurse Marie-Claire Hoyle developed transverse myelitis, a paralysing inflammation of the spinal cord that “left her in agonising pain and unable to use her limbs fully”, after taking part in the AstraZeneca Covid-19 vaccine trial, said The Telegraph. However, she was denied access to compensation because her condition had improved over time and she has since regained most of her lost function.

Claimants have also complained that the system is difficult to navigate, that lengthy backlogs are delaying decisions, and that pay-outs do not adequately reflect the impact of their condition.

What has the Covid inquiry recommended?

In her fourth report, the chair of the Covid inquiry, Baroness Hallett, called for “urgent” reform of the scheme, saying that it’s “not sufficiently supportive”.

She recommended that the government increase the payment at least in line with inflation, then reassess it annually. The report also suggested the government introduce graduated payment levels that reflect the degree of injury, rather than treating all qualifying cases over the 60% disablement threshold the same.

“We are carefully considering the Covid-19 inquiry’s recommendations on reforming the scheme and will respond shortly,” said the Department of Health and Social Care.