The UK government has accepted that the Vaccine Damage Payment Scheme needs reform following recommendations from the UK Covid-19 Inquiry, but has stopped short of committing to higher payments or a timetable for changes.
In its formal response to the Inquiry's Module 4 report, published on 16 October 2026, the Department of Health and Social Care and Cabinet Office said they would review the scheme and involve people affected by vaccine injuries and their families in considering how it could be improved.
What did the Covid Inquiry recommend?
Baroness Hallett's inquiry, which published its report on vaccines and therapeutics in April 2026, called for changes to the existing Vaccine Damage Payment Scheme as soon as possible. Its recommendations included:
- Increasing the existing £120,000 one-off payment by at least the amount of inflation to date.
- Applying annual inflation-linked increases thereafter.
- Introducing multiple payment levels reflecting the severity of injury.
- Considering transitional arrangements so existing and future applicants are treated fairly.
What has the government agreed?
The government said it accepts the need for reform and is committed to reviewing whether the scheme is fit for purpose and delivered effectively. It said the inquiry's recommendations would inform its consideration of options and that it would work with vaccine-injured people and their families.
However, ministers have not accepted a specific new payment amount, agreed to introduce graduated awards, or published a date for implementation. Further information is promised through future Covid-19 Inquiry implementation updates.
How does the existing scheme work?
The Vaccine Damage Payment Scheme currently offers a one-off, tax-free £120,000 payment to eligible people who are severely disabled as a result of vaccination against specified diseases, including Covid-19. The existing definition of severe disablement requires an assessment of at least 60% disablement.
The payment is not legal compensation: the government states that receiving it does not prevent someone from pursuing a separate legal claim.
Inquiry recognises rare but serious harm
The government's response recognises that, in rare circumstances, some people have experienced severe adverse outcomes or died following vaccination, and acknowledges the suffering of affected families. It also emphasises the significant public-health benefits of vaccination during the pandemic.
The policy issue now is whether the review will result in concrete changes to eligibility, payment levels and the administration of claims. For now, the existing scheme remains in place.