Infected Blood Compensation Scheme

Leigh Ingham Excerpts

Thursday 13th February 2025 Commons Chamber

[Nick Thomas-Symonds]

On the hon. Gentleman’s first point, he mentioned me and my colleagues, but of course IBCA is an arm’s length body—it is operationally independent—so it takes operationally independent decisions on how best to pay out the money to as many people as possible, as quickly as possible. As I said, it has decided to adopt a test-and-learn approach to make that possible.

One of Sir Brian Langstaff’s recommendations is that we look at support for voluntary organisations. That will be covered in an update that I will give to the House in due course on all 12 recommendations. However, I give the hon. Gentleman the general assurance that I am, and will continue to be, restless for progress. On his point about IBCA scaling up and having more staff and claims managers, that is precisely what it is doing at the moment.

[Leigh Ingham (Stafford) (Lab)]

I thank the Minister for his statement and update. In Stafford, Eccleshall and the villages, I have a constituent, Janet, who is in her 80s. She tragically lost her first and second husband to infected blood, and she is due to receive compensation as their next of kin. She would like to ensure that she can pass the payments on to their children, who, as the Minister rightly said, are victims, too. However, she has been advised that if that happened, it would constitute a secondary transfer and be subject to inheritance tax. We are talking about people who lost their father and stepfather to this issue. Will he meet me to explore whether a solution can be found in these cases?

[Nick Thomas-Symonds]

First, I should say for clarity that all IBCA payments made to those in the UK will be exempt from income tax, capital gains tax and inheritance tax. Anyone who is in direct receipt of compensation from IBCA, or is a beneficiary of an estate to which compensation was paid on behalf of the deceased, does not need to pay income tax, capital gains tax or inheritance tax on the amount that they receive. I am aware of the concern that my hon. Friend is talking about; that is a slightly different situation. If she writes to me with the details of the case, I will be more than happy to look into it.