Running costs for the government scheme supporting individuals injured by COVID vaccines have exceeded the total financial support provided to victims, according to new official data. Since April 2022, the Vaccine Damage Payment Scheme (VDPS) has cost £83 million to operate, a figure that is more than double the £32 million paid out in compensation to claimants.
The revelations have prompted criticism from advocacy groups and think tanks, who argue the system is inefficient and call for urgent reform. The scheme, established in 1979 to assist those severely disabled by vaccinations, has seen a surge in applications linked to COVID-19 jabs, particularly the AstraZeneca vaccine.
Claim statistics and payout details
Data obtained by the BBC indicates that since November 2021, there have been 24,260 claims submitted under the scheme. However, only 264 have been deemed successful. To qualify, applicants must meet a threshold of “severe disablement” as assessed by an independent doctor. Successful claimants receive a single, tax-free payment of £120,000.
The financial burden on the state has grown significantly. Government data shows that costs for medical assessments rose from £4.3 million in the 2022/23 fiscal year to £19.3 million in 2025/26. As of June 2026, total damages paid to individuals killed or injured by vaccines amount to £31.6 million.
Administrative costs drive spending
The NHS Business Services Authority (NHSBSA), which administers the scheme on behalf of the government, attributed the rising expenses to the increasing volume of claims. A spokesperson stated that both administrative and medical assessor supplier costs are directly driven by the number of applications received.
The figures were disclosed in response to a parliamentary question posed by Conservative MP Sir Christopher Chope. Health minister Dame Diana Johnson confirmed the total expenditure of £83 million between April 2022 and March 2026, covering staffing, administration, and medical reviews.
Criticism from campaign groups
Campaigners argue the scheme is inadequate. Kate Scott of Vaccine Injured and Bereaved UK (VIBUK), whose husband was left severely disabled by the AstraZeneca vaccine, described the program as “not fit for purpose.” She criticized the system for offering insufficient support to too few people, stating, “It offers too little, too late, to too few and the cost of running it shows how inefficient it is.”
Scott urged the government to implement recommendations from module four of the COVID-19 public inquiry, which included suggestions from inquiry chair Baroness Heather Hallett to increase payouts and tie them to the severity of the injury. The government is expected to respond to these recommendations shortly.
Taxpayers’ Alliance calls for review
The Taxpayers’ Alliance, a think tank advocating for reduced public spending, stated the public would be “stunned” by the disparity between administrative costs and victim payouts. Chief executive John O’Connell called for ministers to explain why the system is so costly and to cut “unnecessary bureaucracy” to ensure more funds reach those harmed.
In response to the scrutiny, the Department for Health and Social Care said it is “carefully considering” the inquiry’s recommendations and is working to accelerate claims processing. The NHSBSA added that it continues to work closely with the government to manage the costs of the VDPS.
Considering only 264 claims succeeded out of over 24,000, the high admin cost seems to reflect a heavily filtered system rather than pure waste.
It is frankly outrageous that £83m was spent processing these claims when only £32m actually reached the victims. Where is the accountability?