Infected Blood Compensation Scheme

Colum Eastwood Excerpts

Wednesday 23rd October 2024 Commons Chamber

[Nick Thomas-Symonds]

Yes. First of all, and I am sure I speak for everyone in the House, I express my sympathies to the right hon. Gentleman’s constituent and his family. The right hon. Gentleman is entirely right to raise the case directly with Sir Robert Francis. I urge Members across the House to look up the details of the Infected Blood Compensation Authority on the gov.uk website and point their constituents in that direction—the authority is already setting out newsletters—and to do as the right hon. Gentleman has done and write directly to the authority. On the basis of being infected through transmission from his mother, his constituent clearly fits the category of an infected person under the scheme. He is precisely the kind of person the scheme is designed to help. The right hon. Gentleman is right to raise the case on the Floor of the House today in this debate.

[Colum Eastwood (Foyle) (SDLP)]

I am very grateful to the Minister for giving way. This has been a long, long journey for the people who have been affected by this scandal—and that is exactly what it has been. Can he clarify an issue that has been raised about inheritance tax? Given that many payments will be paid to the very elderly, many second generation recipients are worried about inheritance tax. Will they be exempt from inheritance tax? Is that possible?

[Nick Thomas-Symonds]

Yes, the awards are exempt from inheritance tax and capital gains tax. That is precisely how the scheme has been designed. I hope that gives reassurance to the hon. Gentleman.

Let me move on to the points raised by the Secondary Legislation Scrutiny Committee, as it is important that I address them. As the Committee noted, the infected blood scandal stretches back over many decades, and access to records, in particular medical evidence, will be very challenging—I acknowledge that. That is at the very heart, as I am sure hon. and right hon. Members will understand, of the challenge of trying to address an injustice that has been allowed to continue for so many decades. Where that is the case, the authority will need to make objective decisions relying on the evidence that is available in order to determine, on the balance of probabilities, that treatment with infected blood occurred. The authority will—I expect it to do this—provide assistance to those who believe that their medical records have been lost or destroyed, and evidencing eligibility will be easier, faster and more compassionate than, for example, one would experience through any court proceedings.

The Committee highlighted the complexity of the regulations. That is why, alongside the publication of the regulations and the explanatory memorandum, the Government published a detailed policy paper in August on how the compensation scheme will operate, setting out what individuals can expect to receive, including case study examples. Additionally, the Infected Blood Compensation Authority will ensure that appropriate advice and support is available to assist people with managing their compensation awards, accessing financial services and accessing benefits advice where relevant, as I set out in response to an earlier intervention by my hon. Friend the Member for Hartlepool (Mr Brash).

Thirdly, the Committee raised questions on how claimants will receive payments. As set out in recommendation 10 of the infected blood inquiry’s second interim report, the regulations include a mechanism for electing for periodic compensation payments or a lump sum. That is responding to the wishes of those who have told us that they wanted that option to be available to them. We have also provided an alternative for those currently receiving support scheme payments through the infected blood support schemes. The so-called IBSS route was developed following the recommendations of Sir Robert Francis KC, following his engagement with representatives of the infected blood community.

The clearest finding from that engagement was around the continuation of the existing support scheme payments. The Government have listened, and we have agreed and accepted that support scheme payments will continue for life for those who elect the IBSS route. The route will be available for those who applied to be registered on a support scheme on or before 31 March 2025, and delivered as part of the compensation package. The tariff-based scheme is designed to be fast, fair, consistent and secure. We hope that people will be satisfied that they have been provided with full and fair compensation, as the scheme sets out. However, should that not be the case, the regulations make provision for review of decisions made by the authority and for appeals to the first-tier tribunal.