Compensation Scheme

This recommendation is accepted in full. The Inquiry was unequivocal that those who have suffered as a result of this scandal must be compensated for the harm that has been inflicted upon them. The UK Government accepts this recommendation in full. We are grateful for the extensive work of both the Inquiry and Sir Robert Francis in publishing his Infected Blood Compensation Framework Study. The recommendations made in the Inquiry’s Second Interim Report have been integral in designing the Infected Blood Compensation Scheme. The Victims and Prisoners Act, which became law in May 2024, provided the legal basis for the establishment of the Infected Blood Compensation Authority (IBCA). The IBCA is an arms-length body, operationally independent from government, which has been set up to deliver compensation. The Act also obliged the Government to establish a compensation scheme within three months of the passing of the Act. The previous Government announced its proposals for the Infected Blood Compensation Scheme (‘the Scheme’) on 21 May 2024. In June 2024, Sir Robert Francis - Interim Chair of the IBCA - undertook an engagement exercise with the infected blood community to seek their views on the Government proposal. On 16 August, the Government announced improvements to the Scheme, published alongside Sir Robert Francis’ report and a final report from the Infected Blood Inquiry Response Expert Group. On 23 August, the Government published an explainer document setting out the detail of the scheme. The Scheme has been established in regulations made in two parts - the first part (to establish the Scheme for people who are infected and claiming compensation under the core route) came into force on 24 August 2024. These regulations were debated and approved in both Houses of Parliament in October 2024. Further regulations to extend the Scheme for the affected cohort and to establish supplementary compensation routes beyond the core route came into force on 31 March 2025. IBCA have begun making payments under the Infected Blood Compensation Scheme and are developing their service to provide compensation to everyone who is eligible as soon as possible. Since the publication of the Government Response in December 2024, Parliament has approved the Infected Blood Compensation Scheme Regulations 2025. These ensure that IBCA establishes the Scheme in full and gives all the legal powers it needs to pay compensation to everyone who is eligible under the Scheme. The UK Government committed to the first payments being made to eligible infected persons by the end of 2024, and IBCA met this commitment by making the first payments in December 2024. As of 6 May 2025, 677 people have been invited to begin the claims process, with 432 of those starting their claim. 160 offers of compensation have been made, totalling over £150m, and 106 payments have been made, totalling £96,608,906.

Responsibility for Recommendation 1 ‘Compensation’ is with the UK Government, and the administration of the Infected Blood Compensation Scheme sits with the IBCA, which is a UK-wide body. The Welsh Government’s assessment is that progress has been made in establishing the scheme and commencing compensation payments; however, we recognise the concerns expressed by many affected beneficiaries regarding the pace at which claims are being processed and payments made.

The Infected Blood Inquiry recommended that a compensation scheme be set up as soon as possible, and by centrally funding the scheme, the Government has been able quickly allocate the money necessary.

In the Autumn Budget 2024, the government announced it was setting aside £11.8 billion for compensation, and in July 2025, Cabinet Office committed around £1 billion more in funding for compensation payments, bringing the total funding allocated for the scheme to £12.8 billion.