Infected Blood Compensation Scheme (Amendment) Regulations 2025

Baroness Finlay of Llandaff Excerpts

Thursday 11th December 2025 Lords Chamber

[Baroness in Waiting/Government Whip (Baroness Anderson of Stoke-on-Trent) (Lab)]

My Lords, since the publication of the Infected Blood Inquiry’s detailed report in May 2024, the Government have worked to establish a compensation scheme and set up the Infected Blood Compensation Authority, IBCA, to deliver it. Since the compensation service opened last year, IBCA has contacted all infected people registered with a support scheme to start their claim, and made offers of over £2 billion. The service has now been opened to the first claims from living infected people who have never been compensated. I am pleased with this progress and it is a significant step in the right direction toward delivering justice to those impacted. IBCA is now moving toward opening the service for those affected, and for the estates of deceased infected people.

In July, the Infected Blood Inquiry published its additional report, which made 15 recommendations for the Government on the design of the scheme. We immediately accepted seven of those recommendations. The regulations we are considering today will implement the five of those seven that require legislation to achieve. The remaining eight recommendations are subject to an ongoing public consultation, and the Government expect to bring in further legislation next year to implement the further changes following the consultation. The regulations at hand today show that the Government have reflected on and listened to the inquiry’s words on involving those impacted by this dreadful scandal. It is right that we accepted these recommendations and I am pleased that we have been able to bring them forward swiftly.

Hearing the voices of the community is essential. That is why the Chancellor announced changes in the Budget that ensured that infected blood compensation payments are relieved from inheritance tax in cases where the original infected or affected person eligible for compensation has sadly died before the compensation is paid. I am pleased that we have been able to make this change, and that justice is not only delivered but reflected in the way compensation is treated.

I will set out the changes that we are proposing to the scheme in the regulations. These are a result of the Government’s immediate acceptance of some of the inquiry’s recommendations. Regulation 3 responds to the inquiry’s recommendation 3(a) and removes the 1982 start date for eligible HIV infections. This means that anyone who was infected with HIV via infected blood or infected blood products before 1 November 1985 will be eligible for the scheme. Regulation 4 makes changes in line with the inquiry’s recommendation 8(b) on affected estates. Its additional report set out that the time being taken to deliver compensation is disadvantageous to affected people who are older or in ill health. The recommendation is that, where an affected person has sadly passed away during a specified date range, their compensation should become part of their estate. The Government have accepted this recommendation and is going beyond the inquiry’s recommendation, extending the recommended date range by two years to be between 21 May 2024 and 31 March 2031.

Regulation 6 actions the inquiry’s recommendation 4(e), recommending that the Government remove the need for applicants with hepatitis C or B to “evidence” their date of diagnosis. The date of diagnosis has no bearing on the calculation of an individual’s compensation, and therefore making this change removes an unnecessary burden that will facilitate swifter processing of claims by IBCA. Regulation 7 implements the inquiry’s recommendation 4(d), relating to how the scheme deems the level of severity of someone’s hepatitis infection. Where someone shows a level 4 diagnosis of hepatitis, but no level 3 diagnosis, we are amending the scheme so that they are deemed as having spent six years at level 3 prior to their level 4 diagnosis. This will uplift their overall compensation package and recognises that the burden of evidence should not fall on the claimant in light of the inquiry’s finding on lost medical records.

We have heard from the community and the inquiry that the use of effective treatment dates under the scheme does not reflect the lived experience of many victims. Not all infected people were able to resume work after treatment for various reasons, including continued illness or stigma. Some people received effective treatment much later than when it was introduced. In line with the inquiry’s recommendation 4(c), Regulation 9 rectifies this by removing the earnings floor on the supplementary route exceptional loss award for financial loss. This ensures that a route is available for infected people to present evidence on their actual earnings loss.

The Government recognise that there have been concerns raised about bereaved partners’ access to support scheme payments following the tragic loss of their spouse. In response to these concerns and to the inquiry’s recommendation 9(a), the Government reopened bereaved partner applications to the infected blood support schemes, IBSS, on 22 October. I am grateful to devolved Administration colleagues for their work in helping us make sure we could achieve this so quickly.

One of the key themes of the inquiry’s additional report was the need for IBCA to increase the speed with which it delivers compensation. In order to achieve that, Regulation 10 delays by one calendar year the transfer of responsibility to make support scheme payments from IBSS to IBCA. This will allow IBCA to focus its resources on continuing to build an effective compensation service. I am again grateful to devolved Administration colleagues for their collaborative work on this. Outside the inquiry’s report, Regulation 14 makes a number of technical changes to ensure that the compensation scheme functions correctly, and that its administration is improved. These are minor corrections that do not impact the policy.

This compensation scheme is for people who have had their lives changed by unimaginable pain and suffering. The regulations we are debating today are a direct response to these people’s calls for change, meeting their expectations of Government and carrying forward a sense of justice. As Members of your Lordships’ House, we all share the sentiment that the victims of this scandal should be at the heart of this work. These regulations are a significant step in ensuring that this compensation scheme delivers for the people impacted, as we all intend it to do. I beg to move.

[Baroness Finlay of Llandaff (CB)]

My Lords, I thank the Minister for bringing this to the House and going through things so comprehensively. I also thank her for being open to having conversations about the whole scheme at other times, without necessarily requiring us to book an appointment with her.

I have a couple of questions on areas that require clarification. First, is it correct that the compensation scheme does not pay specific damages to people infected as children up to the age of 16, other than a £10,000 unethical research award if the family of the deceased can prove that they were a victim—which is the same for adults? Is it correct that, if the infected child dies, there is no compensation for a lost life? As parents are not classed as dependants, can the Minister clarify what they are eligible for, having lost their child, and how that changes if their child died after the age of 16 or 18?

[Baroness Brinton (LD)]

My Lords, I am grateful that the Minister is keeping in touch about the regulations, not just today but from when we last debated this in November. She will not be surprised to know that most of the concerns from these Benches are about the practicalities. The main concern remains the slowness of progress of the compensation arrangements. Clearly, there is some movement, and I am grateful for the increase in the amount of money that has now been agreed for compensation. That is good news. However, it is still very slow even for some infected victims, because they have not even got to first base. The proposed arrangements for affected victims just seem to drift longer and longer into the future.

The Minister knows that the real problems emerging at the moment actually relate to the detail of the compensation scheme, and specifically to changes that are being made at the moment. I apologise to her that I have a series of questions and some are quite technical. If she cannot reply today, please will she write to me? I do not think that this is the first time I have said that.