Infected Blood Compensation Scheme
Statement from the Minister for the Cabinet Office on the Infected Blood Compensation Scheme
Introduction
With permission, Mr Speaker, I would like to make a statement following the final report of the Infected Blood Inquiry.
Yesterday, the Prime Minister spoke about the anguish the infected blood scandal brought to those impacted by it.
I want to reiterate his words and apologise again today. I am sorry.
The Prime Minister also spoke – on behalf of the whole house – of our gratitude to Sir Brian Langstaff and his team, for completing his comprehensive report…
I think seven volumes, two and a half thousand pages…
…and of our appreciation of all those who came forward as part of the inquiry.
It was the greatest privilege of my ministerial career to have met over 40 representatives of the infected blood community…
…in Cardiff, Edinburgh, London, Belfast, Birmingham and Leeds…
… as we finalised our response to compensation for this appalling tragedy.
The whole community’s bravery through immense suffering is what has enabled justice today…
…I know many of them will be watching in the gallery today….
…and I want to honour their fortitude through their unimaginable pain, as I lay out a more detailed response to Sir Brian’s second interim report on compensation.
We will provide the House with a further opportunity to debate the Inquiry’s full report after the Whitsun recess.
The Government will also respond to each recommendation in full as quickly as possible within its comprehensive response to the report.
Compensation
Mr Speaker, the Prime Minister confirmed yesterday that the Government will pay comprehensive compensation to those who have been infected and affected as a result of this scandal.
I will now set out to the House the scheme the Government is proposing
…. And of course, more details of the scheme will be published online today.
(ALB, Eligibility, Burden of Proof)
We are establishing the Infected Blood Compensation Authority, an arm’s length body to administer the compensation scheme.
A shadow body has already been set up and an interim CEO has been appointed…
…and today I am delighted to announce the appointment of Sir Robert Francis as the interim Chair of the organisation.
The experience and the care that Sir Robert will bring to this role will ensure that the scheme is credible and trusted by the community…
His support in delivering this scheme will be invaluable.
Mr Speaker, those who have been infected or affected – as a result of this scandal – will receive compensation.
To be crystal clear…
…if you have been directly or indirectly infected by NHS blood, blood products or tissue contaminated with HIV or Hepatitis C…
…or have developed a chronic infection from blood contaminated with Hepatitis B …
…you will be eligible to claim compensation under the scheme.
And where an infected person has died, but would have been eligible under these criteria, compensation will be paid to their estate.
And this will include where a person was infected with Hepatitis B and died during the acute period of infection.
But, Mr. Speaker, Sir Brian could not have been clearer.
It’s not just the harm caused by the infections that requires compensation…
…it’s also all the wrongs suffered by those affected that must also be compensated for.
So, when a person with an eligible infection has been accepted onto the scheme…
…their affected loved ones will be able to apply for compensation in their own right.
That means partners, parents, siblings, children and friends and family who have acted as carers of those who were infected are all eligible to claim.
Now I am aware that being asked to provide evidence of eligibility will likely be distressing.
So I am determined to minimise that as much as possible.
And I am pleased to confirm today that anyone already registered with one of the existing Infected Blood Support Schemes will automatically be considered eligible for compensation.
Loss Categories
Mr Speaker, I would like to give thanks to the dedication and hard work of Professor Sir Jonathan Montgomery and the other members of the Expert Group…
… who were critical in advising on how the Government could faithfully translate the recommendations of Sir Brian for the scheme.
And in line with our previous commitment, we will publish the names of those experts today.
Now in his report Sir Brian recommended compensation be awarded with respect to the following five categories.
An Injury Impact Award…
…acknowledging the physical and mental injury caused by the infection.
A Social Impact Award…
…to address any stigma or social isolation as a result of the infection.
An Autonomy Award…
… acknowledging how family and private life was disrupted during this time…
A Care Award…
…to compensate for past and future care needs of anyone infected…
And finally, a Financial Loss Award…
…for past and future financial losses suffered as a result of the infection.
The Government accepts this recommendation…
…with two small refinements, informed by the work of the Expert Group, and designed for simplicity and speed. Two other principles that Sir Brian asserted.
First, the Care Award will be directly awarded to the person with the infection…
…or their estate.
And second, the Financial Loss Award will be paid either directly to the person with the infection, or
…where an infected person has tragically died before the establishment of the scheme, their estate and affected persons who were dependent on them…
Now,sadly many people have links to multiple individuals who were infected, or are both infected themselves and affected by another’s infection…
…so multiple injury awards will be offered to reflect the scale of the loss and suffering.
The scheme will be tariff-based. And we will be publishing an explanatory document, including examples of proposed tariffs on gov.uk.
However, Mr Speaker, this is not the end.
Over the next few weeks Sir Robert Francis will seek views from the Infected Blood Community on the proposed scheme before its terms are set in regulations, to make sure that the scheme will best serve those it is intended for.
Now, Sir Robert has welcomed the Government’s proposals as positive and meaningful. He will set out more details on engagement with the community shortly.
Payment Process
The Inquiry recommended that the scheme should be flexible in its award of compensation…
…providing options for a lump sum or regular payments.
We agree, and that is why awards to living infected or affected persons will be offered as a lump sum or periodical payments.
And where the infected person has died, estate representatives will receive compensation as a single lump sum to then distribute to beneficiaries of the estate as is appropriate.
We will also guarantee that any payments made to those eligible will be exempt from income, capital gains and inheritance tax…
…as well as disregarded from means tested benefit assessments.
We will also ensure all claimants are able to appeal their award…
…through both an internal review process in the Infected Blood Compensation Authority…
…and, where needed, the right to appeal to a First-tier tribunal.
And our expectation is that final payments will start before the end of the year.
Now, Mr Speaker, if you would permit, I would like to return to the House when the regulations are laid later this year…
…to make a further statement on an update on the delivery of the compensation scheme.
Support Schemes
But, I know from my discussions with the community just how important the existing Infected Blood support scheme payments are to them.
I recognise that many people sadly rely on these payments …
…and they are rightly keen to understand what the Government’s intentions are.
And I want to provide reassurance to all those out there today…
…that no immediate changes will be made to the support schemes.
Payments will continue to be made at the same level until 31 March 2025…
…and they will not be deducted from any compensation awards.
From the 1st April 2025, any support scheme payments received will be counted towards a beneficiary’s final compensation award.
This will ensure parity between support scheme beneficiaries, regardless of whether they were the first or the last to have their compensation assessed by the Infected Blood Compensation Authority.
And we will ensure that no-one…no-one, receives less in compensation than they would have received in support payments.
Interim Payments
Now Mr Speaker, I recognise that members of the infected blood community are still dying each week from their infections.
And there may be people, indeed there will be people listening today…
…who are thinking to themselves that they may not live to receive compensation.
So, I want to address some of those concerns too.
Today I am announcing that the Government will be making further interim payments ahead of the establishment of the full scheme.
Payments of £210,000 will be made to living infected beneficiaries - those registered with existing Infected Blood Support Schemes…
…as well as those who register with a support scheme before the final scheme becomes operational…
…and the estates of those who pass away between now and payments being made.
I know that time is of the essence…
…which is why I am also pleased to say they will be delivered within 90 days, starting in the summer.
….so that they can reach those who need it so urgently most.
Memorial
Mr Speaker, before I conclude, I would like to turn to the matter of memorialisation.
Many of those who were infected by contaminated blood or blood products have since died…
…died without knowing that their suffering and loss would be fully recognised, either in their lifetime or at all.
The lives of most of those who have died remain unrecognised.
And I note Sir Brian’s recommendations on memorialisation across the UK…
…and the Government will address these recommendations in detail as part of our wider response to this report.
Conclusion
So in conclusion, Mr Speaker, I know that the whole House will want to join me in thanking Sir Brian and the Inquiry for the work that they have done…
…and pay tribute to all those who have been caught up in this terrible tragedy and battled for justice for so long.
Yesterday was a day of great humility for everyone implicated by this Inquiry…
…and today, I can only hope - with the Inquiry’s report published, and with our firm commitment to compensate those touched by the scandal - the infected blood community knows their cries for justice have been heard.
Mr Speaker, I commend this statement to the House.