PARLIAMENTARY DEBATE
Infected Blood Compensation Scheme - 30 October 2025 (Commons/Commons Chamber)
Debate Detail
In July the infected blood inquiry published its additional report, which made a number of recommendations on ways that the compensation scheme could be amended to achieve a scheme that works better for all infected and affected people. I updated the House then to confirm that the Government were responding positively and that we would bring forward legislation as soon as we could to address the recommendations that we could implement immediately.
The regulations that I am laying before the House today will achieve a number of those changes and demonstrate this Government’s commitment to responding swiftly and constructively to the inquiry’s recommendations. Specifically, the regulations respond to five of the inquiry’s recommendations by removing the HIV eligibility start date; removing the minimum earnings threshold for a person to claim the exceptional financial loss award; removing the requirement for evidence of the date of diagnosis of hepatitis B or C; making changes to the deeming provisions for the severity of hepatitis C; and expanding eligibility to include estates of all affected people who have died between 21 May 2024 and 31 March 2031, which actually goes further than the inquiry’s recommended date range.
The regulations also put back the transfer of responsibility to make support scheme payments from the infected blood support schemes to the Infected Blood Compensation Authority—IBCA—by one calendar year. That means that IBCA will begin making phased support scheme payments from January to March 2027. IBCA requested that change to allow it to concentrate on accelerating the delivery of compensation and expanding the service to all eligible groups this year, while ensuring—this is essential—that there is no disruption to those receiving support scheme payments. There will of course be a separate opportunity for the House to debate these regulations in fuller detail before they are approved, and I look forward to that debate.
I would also like to inform the House that we have implemented the inquiry’s recommendation to reinstate support scheme payments to partners bereaved after 31 March this year until they have received compensation. Applications for those individuals reopened on 22 October, and I am grateful to colleagues across the devolved Administrations and the support schemes for the collaborative approach to making that happen.
Today I am launching a public consultation on proposed changes to the infected blood compensation scheme, as recommended by the inquiry. I encourage responses from the infected blood community and from all those with an interest in the infected blood inquiry. I assure hon. Members that every response will be considered carefully.
The consultation sets out questions across seven specific issues: harm caused by interferon treatment; the special category mechanism and its equivalents; severe psychological harm; past financial loss and past care; evidence requirements for exceptional loss; supplementary awards for affected people; and unethical research. The Government have sought initial advice from an infected blood compensation scheme technical expert group to develop proposals on those topics in response to the inquiry’s additional report for this public consultation. The feedback we receive through that consultation will inform the decisions that the Government take. The technical expert group will also take part in targeted engagement with the community.
I previously gave the House an undertaking that transparency would be at the heart of any expert group going forward. That is why the five additional members who have been appointed to the technical expert group were appointed following valuable feedback from infected blood community stakeholders, and it is why I am today publishing the minutes of the group’s meetings that have taken place so far. I look forward to hearing the views of the community within the consultation process and beyond as we work together to ensure that the Government’s response meets expectations. We will publish a response to the consultation on gov.uk within 12 weeks of it closing. As I set out in July, we will also need to bring forward further regulations next year to implement changes following the outcome of the consultation. Listening to and working with the infected blood community is essential to ensure a compensation scheme that works for everyone, and I am hopeful that this consultation will allow us to do just that.
I now turn to the delivery of the compensation scheme as it currently stands. IBCA has made significant progress in the delivery of compensation. As of 21 October, 2,476 people have received an offer of compensation, and over £1.35 billion has been paid. IBCA reached the significant milestone of having paid out over £1 billion in compensation last month, which I am sure the House will agree is welcome and notable progress in the delivery of compensation. I can also tell the House that offers totalling over £1.8 billion have now been made.
As of the end of September, all infected people registered with a support scheme have been contacted to begin their claim, and IBCA has set out its intention to open to unregistered infected people in November. In order to open, IBCA must build a service that allows it to confirm an infection before a claim begins, check the identity of each person claiming, and ensure that all the necessary legal and financial support is in place for anyone who wishes to use it. This approach, which IBCA also took with the first group of people making a claim, means that the numbers will initially be lower. However, I expect that—as with the first group—those numbers will rise exponentially as progress is made.
Earlier this month, IBCA also launched a registration service for people who intend to make a claim to register their details. As of 21 October, it has received 10,573 registrations of intent to make a compensation claim. To be clear, that figure represents all registrations, not unique people or claims. Those registrations will be particularly helpful in identifying the unregistered infected people for the next group, and indeed more as the service grows.
As Members of the House are aware from my previous statements on this matter, IBCA is an independent arm’s length body, and it is vital that we respect that independence while also ensuring that I do what I can to drive progress forward. That is why in July I asked for an independent review of IBCA’s delivery of the scheme. That review, led by Sir Tyrone Urch, began in August and concluded earlier this month. I am today publishing that review and have deposited a copy in the Libraries of both Houses. The report notes that IBCA has made “substantial early progress” towards delivering compensation to victims of infected blood, but it also makes recommendations to aid the scaling-up of operations and the delivery of compensation to complex cohorts. I will, of course, consider all of those recommendations carefully.
Alongside IBCA’s delivery of the compensation scheme, the Government have continued to make progress on interim payments. In July I informed the House that we would make a further interim payment of £210,000 to the estates of infected persons who were registered with an infected blood support scheme or predecessor scheme and have sadly passed away, in addition to the interim payments of £100,000 that opened for applications in October 2024. I am pleased that applications for those payments opened last week, meaning that some estates could now be eligible for up to £310,000 in interim payments.
Since applications for the initial interim payments opened last year, over 600 estates have received payments, totalling over £60 million. That is in addition to the £1.2 billion that the Government have paid in interim compensation more widely. I hope that this additional interim payment brings some temporary relief to the families impacted, and I also hope that IBCA’s intention to begin the first claims on behalf of estates of deceased infected people by the end of this year provides some reassurance.
I am resolute that we get this right, and I hope the progress I have set out today shows that we are taking positive action and, crucially, listening to and making progress alongside the community. After all, those who have been so impacted by this horrendous scandal must be at the core of every decision we make, in Government and across this House—they deserve no less. I commend this statement to the House.
Turning to the recommendations relating to hepatitis, we of course welcome confirmation that the Government will remove the earnings floor on the supplementary route exceptional loss award. However, I did not hear any specific reference in the Minister’s statement to measures to address recommendation 4(c) of the original report, which deals with effective treatment. Perhaps the Minister could set out how the Government intend to give effect to that recommendation. Similarly, could he set out what measures the Government are taking—beyond the appointment of the new members of the technical expert group that he has announced—in response to recommendation 2(e), which deals with the transparency of scheme design? That is particularly important in light of the inquiry’s worrying finding that victims did not feel that they were being listened to.
I now turn to the recommendations that the Government did not feel able to accept immediately. I welcome the fact that the Minister is consulting on a way forward on those issues; clearly, as I have said, there is a need for transparency and proper consultation. The consultation period will last until the end of January next year. We recognise that there is little that the Minister can do about that clearly defined period, but given the need to address these measures without undue delay, will he ensure that once that consultation period closes, the Government respond swiftly to the consultation paper and introduce any necessary further regulations with maximum speed, so that this House can consider any further measures that are necessary?
More broadly, how are the Government applying the lessons learned from the implementation of payment schemes for people infected to better inform the operation of payments to people affected and to their estates, as he referred to in his statement? What action is the Minister taking with the independent IBCA to ensure that the pace of payments, which has seen welcome progress, continues to accelerate and is not jeopardised by changes to rules and processes?
As I said, Sir Brian’s inquiries have done incredible and invaluable work to give a voice to those who have battled so courageously against decades of injustice, and to ensure that victims and their families have some remedy, although clearly no amount of money can ever reverse the terrible harm done by this scandal over many years. The recommendations in the additional report that Sir Brian published shortly before the summer are an invaluable contribution. Looking forward, there will need to be a degree of policy certainty as we move from a period of review to one of rectification and delivery. That is one reason that the cross-party work, both before and since the election, has been so important to give confidence and certainty. Looking ahead, does the Minister have any indication as to when we might expect the inquiry to draw to a close, and what might the mechanism be for doing so?
I join the shadow Minister in paying tribute to the work of the inquiry and to Sir Robert Francis and David Foley, IBCA’s chief executive. This House rightly has held me to account for the number of payments. IBCA was running a test-and-learn approach, and I always said to the House that there would be a smaller number that was a representative sample of cases, which would then allow IBCA to scale up exponentially. We are now in that exponential phase—that steep curve. I look every single week at the number of payments, and it is starting to increase significantly. I know that Members across the House will welcome that.
The shadow Minister made a point about treatment for hepatitis. One of the things we are looking at in the consultation is the impact of interferon, which had such a detrimental impact on so many people.
The shadow Minister is right to raise the transparency mechanism. While I do not need a piece of legislation for that, I am looking at that mechanism and want to get it into place as soon as possible.
The shadow Minister asked about the 12-week consultation. The Government will respond to that within 12 weeks, and I will then want to bring forward a fourth set of regulations with the greatest possible speed.
The shadow Minister’s final point was about learning lessons, and that is precisely why I asked Sir Tyrone Urch to carry out his work. First, it was about learning the lessons from what has happened so far and how we can best take things forward. Secondly, it is about the practical steps I can take to assist IBCA with scaling up and making payments to affected people, which will clearly be a far larger number of people for IBCA to deal with.
To finish on a consensual point, the cross-party support on this issue has been important. The continuity between the work I have done and the work of my predecessor as Paymaster General, the right hon. Member for Salisbury (John Glen) has been hugely important in the delivery of this scheme.
There is also this outstanding issue of support to the campaigning groups that support the applications of people who are infected and affected. Part of one of Sir Brian Langstaff’s recommendations was that they need extra support from the Department of Health and Social Care. On both these issues, what can my right hon. Friend do to assist the people making these applications and to get them the response to Sir Brian Langstaff’s recommendations that they deserve?
An estimated 30,000 victims suffered, and that suffering was compounded by the further injustice of having to wait decades for compensation. As of my latest data, I understand that six times as many people have died waiting for justice as have benefited from this scheme. I hope the Minister can update me with a slightly more accurate figure. Payments to date have been made at an infuriatingly glacial pace.
I would like to ask the Minister about the timelines for delivering compensation. Can he reaffirm that all eligible victims—all 30,000—will receive compensation by 2029? Will he confirm that the consultation he will undertake will not delay in any way or affect the speed at which the payments are being made? More specifically, I have challenged him before about the 916 victims of the special category mechanism. Are they in a different state from the advice given in August last year? Have things changed completely from the situation in February this year, when the rules changed?
I just want to check something that I am not entirely clear about. With the Infected Blood Compensation Authority, the current approach was that people could not apply for compensation, and you are now saying that they can and that they will not have to wait—
The hon. Lady asked me about 2029; that is a backstop, not a target date. I said that to the inquiry in May as well. The target is to get the payments out as quickly as possible. As I said in response to the shadow Minister, the hon. Member for Kingswinford and South Staffordshire (Mike Wood), the test-and-learn approach was always taken because we felt—and IBCA felt—that that would ultimately be the way to get the money out to the largest number of people as quickly as possible. I think we are now in an exponential phase where the number of payments is going up quickly.
The hon. Lady is entirely right to draw attention to the number of people who have died before actually securing justice. That is again a reason why I have been pushing for payments to be made as quickly as possible.
Finally, the special category mechanism is one of the seven issues mentioned in the consultation. I know this has been asked before, but I would urge her and her constituents to respond to that.
Going back to the point raised by the chair of the APPG, the hon. Member for Eltham and Chislehurst (Clive Efford), as I understand it, if a compensation grant is made to the family of someone who has already died, those relatives will receive it tax-free, but if the grant is made to the individual shortly before their death, the very same family members might have to pay inheritance tax on it. That is clearly an anomaly, so will the Minister speak to the Treasury about it?
On the right hon. Gentleman’s second point regarding the tax exemption, he is correct, I think, in his interpretation that there is a single tax exemption. The compensation is received free of tax in the first instance, but there is no subsequent tax exemption. That is in line with general Government policy on tax exemptions across the board.
To press the Minister further on the point raised by my hon. Friend the Member for Eltham and Chislehurst (Clive Efford) and the right hon. Member for New Forest East (Sir Julian Lewis), under this scheme people get compensation because they are dying due to infected blood; it is not random, coincidental or due to something else. If they happen to receive the compensation just before they die, their family will pay inheritance tax on it. The victims want to ensure that their families are properly supported, because they are no longer able to do that, so will the Minister renew his efforts to talk to the Treasury about this issue? This is a small, defined group of people, which does not need to set a more general precedent, but for this particular scheme—where the state failed people so much—the issue is an important one to resolve.
However, after six years, £140 million has been spent on this inquiry—and we do not yet have the accounts for the current year. In Sir Tyrone Urch’s review, which the Minister mentioned, the first recommendation is regarding policy stability. Can the Minister say something about how we will achieve that policy stability? Respectfully, is it not time to thank Sir Brian and Sir Robert for their work and then focus on the delivery of IBCA, rather than have more iterations of recommendations, which do not achieve much for the individuals who need this accelerated?
The Minister has clearly set out that that is in line with policy; is he willing to stand at that Dispatch Box and state, categorically, that that is fair? If he cannot say that it is fair, will he at least undertake to again raise this issue with the Treasury, so that those people who were failed by the state are not then penalised by the state?
With regard to the hon. Gentleman’s second point, on the issue of voluntary bodies, a couple of different issues are mixed up on that question. If he writes to me precisely about putting work on a statutory footing, I will give him an answer. More generally, the work of voluntary bodies and charities in supporting victims has been absolutely invaluable, and I am very conscious of the financial pressures they are facing.
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