Recommended Reforms to the Vaccine Damage Payment Scheme and What They Mean for You
The UK COVID-19 Inquiry published its Module 4 report on 16 April 2026, examining the response to the pandemic in relation to vaccines and therapeutics. Among its most significant findings are the recommendations for reform of the Vaccine Damage Payment Scheme (VDPS), which the Inquiry has determined is no longer fit for purpose. For individuals who have suffered injury as a result of a COVID-19 vaccination, these recommendations represent a meaningful and long-overdue step towards fairer recognition and support.
This article explains what the VDPS is, what Module 4 of the Inquiry examined, and what the proposed changes could mean in practice for those who may have a claim.
What Is the Vaccine Damage Payment Scheme?
The Vaccine Damage Payment Scheme is a UK government scheme established under the Vaccine Damage Payments Act 1979. It provides a one-off, tax-free lump sum payment to individuals who have been severely disabled as a result of vaccination against a specified disease. The scheme is not designed to compensate for all losses; rather, it exists to provide financial support and recognise the impact of death or injury arising from vaccination.
Importantly, the scheme is a no-fault mechanism. Applicants are not required to prove negligence or any other wrongdoing on the part of the vaccine manufacturer or the government. However, they must demonstrate, on a balance of probabilities, that their disability was caused by vaccination and that they are, or were, "severely disabled" — currently defined as disablement to the extent of 60% or more.
COVID-19 vaccines were added to the scheme in December 2020, and by January 2025, there had been 17,519 applications in respect of COVID-19 vaccines.
What Did Module 4 of the COVID-19 Inquiry Examine?
Module 4 of the Inquiry examined the UK's response in relation to vaccines and therapeutics. In the context of the VDPS, the Inquiry investigated the operation of the scheme, its accessibility, the eligibility thresholds, the level of payment, and the significant delays experienced by applicants.
The Inquiry heard extensive evidence about the difficulties faced by those who had suffered vaccine injury, including the challenges of the application process, the inadequacy of the current payment amount, and the harmful impact of delays in decision-making.
Why Is Reform Being Recommended?
The Inquiry identified several fundamental problems with the current scheme.
The 60% Disablement Threshold Is Too High
Under the current scheme, an applicant must be assessed as at least 60% disabled in order to receive any payment whatsoever. This threshold is based on a model derived from pre-war industrial injury and war pension schemes, requiring comparison to physical injuries such as partial limb amputation. The Inquiry heard expert evidence that this approach is "outdated" and "not well adapted to the sphere of vaccine injury", particularly where neurological, fatigue, and pain conditions are concerned.
The Inquiry recognised that COVID-19 vaccine injuries often involve neurological symptoms which do not sensibly fit into a percentage-based scheme designed for industrial accidents or combat injuries. Under the current system, someone whose life has been significantly affected — for instance, who is unable to work or care for their children — may receive nothing at all if they fall below the 60% threshold.
The Chair of the Inquiry acknowledged that the obligation to prove 60% disability was too onerous.
The Payment Amount Is Insufficient
The current one-off payment of £120,000 has not been revised since 2007. The Inquiry heard evidence from campaign groups that this sum is wholly inadequate to cover the costs associated with severe vaccine injury, including household bills, home adaptations, bereavement costs, and loss of income. Expert witnesses confirmed that the UK payment compares poorly with comparable schemes in other countries, including those in France, Germany, Switzerland, and the Nordic countries.
The fixed award of £120,000 was also found to be insufficient to account for the significant and varying impacts of a COVID-19 vaccine injury.
Unacceptable Delays
The scheme developed a significant backlog following the COVID-19 vaccination programme. By June 2023, the average time between application and payment was 462 days. As at January 2025, almost 8,000 applicants had not received a decision, with some waiting more than two years. The Inquiry heard that these delays caused additional trauma and distress, particularly for bereaved families.
What Does the Inquiry Recommend?
The Inquiry's formal recommendation — Recommendation 5 of the Module 4 report — calls on the UK government to reform the Vaccine Damage Payment Scheme as soon as possible. The reform should include, as a minimum:
Increasing the £120,000 payment, at least in line with inflation to date (which the Inquiry calculates would bring the maximum award to approximately £200,000 based on current inflation rates).
Subsequently applying annual increases in line with inflation.
Introducing multiple levels of payment, commensurate with the degree of injury suffered — effectively a graded or tariff-based system where the level of award reflects the severity of the individual's condition.
Any transitional arrangements necessary to provide for fairness between applicants to the existing scheme and applicants to the revised scheme.
This means that the current "all or nothing" approach — where individuals either receive £120,000 or nothing — would be replaced by a more graduated system recognising the full spectrum of vaccine-related harm.
What Does This Mean in Practice for Potential Claimants?
For individuals who have suffered injury or bereavement as a result of a COVID-19 vaccine, these recommendations carry important implications.
Firstly, the lowering of the disablement threshold means that individuals who were previously excluded from the scheme because their injury did not reach the 60% threshold may become eligible for a payment under the reformed scheme. Those whose lives have been significantly affected by vaccine injury — even where the injury does not amount to partial limb amputation or its equivalent — should, under the proposed reforms, receive recognition and financial support.
Secondly, the introduction of a graduated payment system means that awards will be proportionate to the level of injury suffered, rather than a single fixed sum regardless of severity.
Thirdly, the recommendation includes transitional arrangements for those who have already applied to, or received an award under, the existing scheme. This is intended to ensure fairness as the system moves from the old scheme to the new one.
It is important to note, however, that the new scheme itself needs to be established by the Government on foot of this recommendation, which could take some time. As at the date of the report's publication, no formal announcement has been made regarding the precise timetable for reform.
What Should You Do Now?
If you believe that you or a family member has suffered injury or bereavement as a result of a COVID-19 vaccine, we would encourage you to seek specialist legal advice as early as possible. Even though the reformed scheme has not yet been implemented, there are steps that can be taken now to prepare and protect your position, including gathering medical records and ensuring that applications are properly documented.
Our specialist personal injury team has extensive experience advising individuals affected by vaccine-related harm and navigating the VDPS process. We are closely monitoring developments following the Module 4 report and are well placed to advise you on your options, whether under the current scheme or the reformed scheme once it is established.
To speak with one of our dedicated team members, call us on 028 8772 2102 or email us at enquiries@paduffy.com
*This information is intended for general guidance purposes only and does not constitute legal advice, nor should it be relied upon as a substitute for professional advice specific to your circumstances.