On 21 May 2024, the Government announced its plans for the Infected Blood Compensation Scheme for those who received infected blood and blood products and the people who were affected by this.
This guide breaks down what it might mean for you. We are still working through the new guidance and not all details of the new system have been released; this guide covers our understanding so far.
Please note: the Government made further announcements about compensation on 16 August. Please follow the link below to read these updates.
What has the Government announced?
The Government has announced its intent to make compensation payments to those infected and affected before the end of the year.
Speaking in Parliament on 21 May, former Cabinet Office Minister John Glen has said a final compensation scheme is being set up now and an interim body, with a chief executive, is in place.
People who received infected blood or blood products and are registered with UK Infected Blood Support Schemes received interim payments of £210,000 on 24 June.
This £210,000 was in addition to the £100,000 already received.
People who received infected blood or blood products and are registered with a UK Infected Blood Support Scheme before the final compensation scheme becomes operational, and the estates of those registered on the scheme who pass away between 20 May 2024 and 24 June 2024, are also entitled to the interim compensation.
Please note: this means that bereaved partners and estates will not be entitled to receive the second interim compensation payment if the person who received infected blood passed away before 20 May 2024.
On 26 July 2024, the new Paymaster General Nick Thomas-Symonds announced that applications for interim payments of £100,000 to the estates of deceased victims who have so far not received any compensation will be open in October.
Further compensation payments will be made when the new compensation scheme is set up. This is expected to happen by the end of the year.
The new Government has committed to publishing the Infected Blood Compensation Authority’s report on the compensation scheme and its own response by 24 August.
What is the Infected Blood Compensation Authority?
The Infected Blood Compensation Authority (IBCA) is a new arm’s length body set up by the government to administer the compensation scheme.
Its interim Chair is Sir Robert Francis, author of the 2022 Infected Blood Compensation Framework Study.
IBCA will deliver the Infected Blood Compensation Scheme, which will provide financial compensation to victims of infected blood on a UK-wide basis.
Do I need to apply for compensation?
If you received infected blood or blood products and are registered with a UK Infected Blood Support Scheme, you will automatically receive the interim compensation payments. We don’t anticipate a second registration process for the IBCA but are awaiting publication of the final details of this system.
People affected by the scandal, including parents, partners and children, siblings and carers will be entitled to apply for compensation once the Infected Blood Compensation Scheme has been set up.
This is expected to happen before the end of 2024. People affected cannot apply for compensation at the moment.
How much will I receive in compensation?
At the moment the figure that anyone will receive as a final compensation payment has yet to be determined.
A tariff structure has been proposed with recommended amounts depending on the type of infection given and ill-health experienced.
This structure can be viewed on the Government website but it is important to note that the figures used have not yet been finalised.
The proposed figures are subject to discussion with members and representatives of the infected blood community prior to being established in regulations.
If you want to contribute to these discussions, you can register your interest here.
Do I need to pay tax on my compensation payments?
Payments will be exempt from income tax, capital gains tax and inheritance tax.
Payments will not affect eligibility for means-tested benefits.
What will happen to the existing UK Infected Blood Support Schemes?
The Government has announced that UK Infected Blood Support Scheme (IBSS) payments are unaffected until 31 March 2025.
Payments will continue to be paid, at the same level, via the IBSS and on an ex-gratia basis until that date.
These payments will not be deducted from compensation awarded through the new Scheme.
We do not yet know what will happen to the schemes after this date but the Government have said that nobody will receive less in compensation than they would have received in support payments.
Where can I find out more?
Details of the IBCA are available on the Government website.
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