(2 days, 5 hours ago)
General CommitteesI beg to move,
That the Committee has considered the draft Infected Blood Compensation Scheme Regulations 2025.
It is a pleasure to serve under your chairmanship, Sir Edward. Let me first address the reason we are here today. The infected blood scandal was a profound failure of the state. It is hard to conceive the scale of the damage done and the incredible suffering of all those impacted. It is important that those people remain at the forefront of our minds. It is for them that we must do everything in our power to rectify this injustice, restore trust in the state and demonstrate that we will not allow such failures to happen again.
This scandal was allowed to go unaddressed for generations, and the onus is on us to rebuild relationships and support those impacted as they progress through the next chapter of their journey. That is why in the autumn Budget, we set aside £11.8 billion to compensate people who are infected and affected by the infected blood scandal. It is, rightly, one of the largest compensation schemes in our country’s history.
The compensation scheme was first established in August last year by regulations approved by the House. The scheme is a tariff-based compensation scheme that provides compensation under both a core and a supplementary route. Under the Infected Blood Compensation Scheme Regulations 2024, the Infected Blood Compensation Authority, or IBCA, has already made progress in paying infected people. As of 14 March, 255 people have been invited to start their compensation claim and 40 people have accepted their offers, totalling over £44 million. We recognise the scale of what needs to be done, and the Cabinet Office continues to work closely with IBCA to ensure that it works as quickly as possible to deliver compensation to people for whom it is long overdue.
The draft regulations will consolidate the 2024 regulations and establish the compensation scheme in full, including for people who are affected: those loved ones of people who are infected, defined in the draft regulations as partners, parents, children, siblings and, in some instances, carers. The draft regulations will allow IBCA to begin making payments to people who are affected by the end of this year.
The draft regulations will also establish the supplementary route, for exceptional cases in which compensation under the core route was not considered sufficient. The supplementary awards for infected people include an additional autonomy award, where someone was subjected to unethical research; a severe health condition award for financial loss and care, where someone suffered from a specific rare health condition that is likely to result in greater care needs or impact an infected person’s ability to work; and an exceptional loss award for financial loss and care, where someone can evidence additional financial loss, most likely as a result of being a higher earner or having higher care costs due to their infection.
There is also a supplementary financial loss award for affected people. This will provide compensation where an affected person was financially dependent on an infected person at the time of their death and that dependency has not already been recognised through the core route. The supplementary route has a higher evidential requirement; people who are claiming will need to demonstrate that their circumstances necessitate a higher compensation award. Importantly, the draft regulations will also allow for people to return to the scheme should their condition worsen as a result of their infection, and for people to claim multiple awards in the devastating circumstances that they are both infected and affected, or affected multiple times over.
I should acknowledge that the draft regulations also amend a small mathematical error that was present in the 2024 regulations. I apologise for this, and reassure the Committee that anyone affected by the issue will receive all the compensation they are due, and resolving the issue should not cause any delays in the roll-out of compensation. The error is a result of the mathematical formula used to calculate some people’s financial loss and care award in the 2024 regulations. To be clear, that means that some people who have been made an offer were offered slightly less than was intended. It will impact only a relatively small number of around 50 people who have received their offer of compensation from IBCA, and the discrepancy represents less than 1% of the claim amount. However, it is important that I draw this to the attention of Members.
Once the problem was identified, we worked quickly to identify a solution to ensure no one was negatively impacted. IBCA has reached out to claimants today to inform them of the error. In addition to IBCA ensuring that everyone receives the correct amount of compensation, the people who were impacted by this will also receive a small ex gratia payment. I want to reassure Members that steps were taken quickly and the draft regulations have been reviewed thoroughly to ensure that the error has been properly addressed. I also highlight that a small amendment was made to today’s draft statutory instrument after it was laid to correct a very minor typographical mistake. Just to reassure Members, I note that the sub-paragraphs were (a) (b) (b) instead of (a) (b) (c), and there was an unnecessary comma. I reassure everyone that those errors have been corrected.
I recently visited the IBCA team, led by Sir Robert Francis, and I know how determined they are for compensation to be paid out to victims as soon as possible. Nothing can ever undo the decades of injustice, pain and suffering, but the draft regulations are another step towards providing full and fair compensation to the people impacted by the infected blood scandal, who have already waited too long for justice. We, as a Government, and more widely as a party and as parliamentarians, should not rest until we see this delivered. We will work closely with IBCA to ensure that it prioritises providing payments quickly, efficiently and in a way that puts the people it is delivering for at the heart of its work. I look forward to hearing Members’ contributions.
I am grateful for both those contributions. I repeat on record my tribute to my predecessor as Paymaster General, the right hon. Member for Salisbury. When I was in opposition, I always sought to work on a constructive, cross-party basis. I say to the shadow Minister, the hon. Member for Kingswinford and South Staffordshire, that I am pleased to see that continuing today. That does not mean that the Opposition do not ask appropriate and searching questions—of course they do—but that cross-party support is really important for the signal we send to the infected blood victims and for the delivery of this scheme, as we stand behind IBCA.
On the questions posed by the former Paymaster General, he will know that, during the general election campaign, when he and I were on various doorsteps around the country, Sir Robert Francis carefully conducted a consultation exercise with the victims. The first thing I found on my desk when I went into Whitehall was a report with 74 recommendations about changes to the scheme. Had the previous Government been re-elected, the document would have been waiting for the right hon. Gentleman. I accepted 69 of the 74 recommendations, including on the continuation of the regular payments and the payment of a lump sum. A significant set of changes were made to the scheme.
I am pleased that the right hon. Gentleman has visited IBCA and seen the work that is going on. I encourage the shadow Minister and other Members of Parliament with an interest in this matter to visit it to see that work. In the other place, Baroness Anderson undertook to place the “Infected Blood Compensation— Getting it Right” document that the right hon. Gentleman referenced in the House Library so that everybody can see it. I support her undertaking.
The right hon. Gentleman is entirely correct that IBCA is an operationally independent arm’s length body. That is what it is set up to be. That is how it will conduct its day-to-day business. As the Minister, I stand ready to help and assist in any way I can to speed up the payments. I am restless for the speed of delivery to increase, but I respect that operational independence going forward, as it is important that I do.
To the point made by the right hon. Gentleman around myths and misinformation, which I am afraid are just a fact of life in the age of social media, it is important for hon. and right hon. Members to go to IBCA’s website and see the newsletters and updates that it publishes on payments. We must also ensure that that is on the Government website, and I take the view that publishing things and putting them in the public domain is by far the better way to go. I will come to the issue the shadow Minister raised about tariffs in a minute, but the explanations for the decisions the Government have made are there in the documents on the website. I say to hon. and right hon. Members that they should go to them so that they can best assist constituents who raise questions.
The point about speed is important. IBCA is adopting a “test and learn” approach. In other words, it has a set of cases that are representative of the general body of cases for which it is paying out. That means that there should be—the right hon. Member for Salisbury referred to it as a hockey stick, which is essentially what it is—an exponential growth in payments. I am as restless as anybody in this room to get to that vertical part of the hockey stick as soon as possible.
To the shadow Minister’s point about money, we will make available the money that is required. We have already made that £11.8 billion available. He also asked a really good question about the level of evidence, and we recognise two things in that respect. First, so much of this happened a very long time ago now—particularly the importation of infected blood, which obviously ceased a long time ago. Secondly, we know from Sir Brian Langstaff’s report that there was deliberate document destruction. Those two things have to be taken into account in terms of evidence.
What I found at IBCA was that there will be that caseworker—that person—for each of these cases. What I also saw was the culture that Sir Brian Langstaff is insisting staff adopt, which is an enabling culture—a helpful culture. Many factors in particular cases are important, including whether someone was a carer or where people lived at the relevant point. People will have that sympathetic, enabling approach of asking what types of evidence might be helpful and where it could be obtained from.
Let me deal with the points about the framework document and about hepatitis C and hepatitis B versus HIV. First, the framework document sets out the timelines agreed between IBCA and the Cabinet Office. The bulk of infected people are to be paid by the end of 2027, and the bulk of affected people are to be paid by the end of 2029, but let me just make it clear that those are not targets: it is as soon as possible and not later than those dates.
I can say this now: it is quite frustrating when, as a Minister, you are given those dates and you know that the significant likelihood and probability is that it will be faster than that, but you are not permitted to say so, because you cannot give false hope. I know the Paymaster General is seeking to move those to the left at every opportunity, but his wonderful officials will be constraining him and giving him some concerns around doing so.
The right hon. Gentleman has particular insight into the workings of the Cabinet Office. Like everyone in the room, he and I are restless for progress. We want these payments out of the door as soon as possible.
The shadow Minister raised the issue of HIV, on the one hand, and hepatitis B and C, on the other. In terms of our tariff rates for hepatitis C, the impact of a hepatitis infection can obviously range from very mild to very severe, through to liver failure and death, as a direct result of the infection. The expert group—appointed by the right hon. Member for Salisbury—provided the Government with clinical advice on the distinctions between those impacts. That meant that we could set severity bands for hepatitis based on clear clinical markers. Therefore, where someone’s experience of hepatitis—whether historical or now—has been more severe, they will get more compensation.
The expert group also recommended a single severity band for those infected with HIV. Sadly, most people infected with HIV due to infected blood have already died, and in most cases the death was as a result of that HIV infection. Those who survived will continue to be severely impacted by their infection. The view of the expert group, which the Government accepted, is that it is disproportionately complex to break down the HIV category into different severity bands. That is why there is a distinction in the bands.
The shadow Minister rightly asked about affected estates. As he indicated, the Government are following Sir Brian Langstaff’s recommendation about how widely we draw the circle. Where an affected estate will have a claim is where there is a claim on a debt. What that means is that an offer was accepted while the affected person was alive. If there has been the offer and the acceptance, then the affected estate has a claim on the debt. We think that that is a reasonable place to draw the line, and it is in line with Sir Brian Langstaff’s recommendation.
I am grateful for both contributions to the debate. There is huge importance to getting this right. It is about achieving fair and comprehensive compensation that is simple enough to deliver quickly without diminishing the individual harm that people have faced. That is the purpose of a tariff-based scheme: it is to get that balance right between swiftness of delivery and not diminishing individual harm. As the shadow Minister will know, if we look at an infected person, there is the injury award, the social impact award, the autonomy award, the financial loss award and the care award, and indeed the core route and the supplementary route. It is a scheme that is trying to strike that balance.
No one is suggesting that this is a straightforward task, but if we look at the recommendations of the infected blood inquiry, at the work of Sir Robert Francis, the advice of the infected blood inquiry response expert group that was led so well by Sir Jonathan Montgomery— appointed by the right hon. Member for Salisbury—they have all made a significant contribution to where we are today. No amount of compensation will make up for the pain and suffering that the victims have faced, and the Government recognise that. Now, however, we need to focus on supporting the Infected Blood Compensation Authority, so I hope we get support for the draft regulations in a few moments; they will enable IBCA to provide that compensation swiftly and compassionately.
I welcome and thank all Members who are interested in this topic. I appreciate the cross-party work on seeking justice, but I also say to all Members present—just as the right hon. Member for Salisbury did—that the door is open for them to raise individual cases and issues with me. Members should please raise them with the Cabinet Office, and I will do my best to ensure that they get a swift response. I hope all colleagues will join me in supporting the draft regulations, and I commend them to the Committee.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Infected Blood Compensation Scheme Regulations 2025.
(1 week, 5 days ago)
Written StatementsYesterday, the infected blood inquiry set out its intention to publish an additional report. The inquiry also published a number of witness statements, including ones provided by the Cabinet Office, the Infected Blood Compensation Authority and a number of people directly impacted by the infected blood scandal and their representatives.
The victims of the infected blood scandal have suffered unspeakably and their needs continue to remain at the forefront of our work. The Government will give careful consideration to the statements published by the inquiry. I am committed to continuing to build trust with people who are impacted by this scandal, and to engaging further with representatives of the infected blood community on the Government response. We will continue to co-operate with the inquiry over the coming months.
The Government are determined to deliver justice for people who are infected and affected as a result of the infected blood scandal. That is why, in the autumn Budget, we set aside £11.8 billion to compensate victims of the infected blood scandal. This is one of the biggest compensation schemes in our country’s history, and that is entirely right given the scale of this injustice. In line with our commitment, in December last year the Infected Blood Compensation Authority began delivering this compensation. As of Friday 21 February, 204 people have been invited to start their claim, and IBCA is on track to meet its commitment for 250 people to start their claim by the end of March.
Before the end of March, both Houses will have the opportunity to debate the draft regulations for people who are affected including partners, parents, children, siblings and, in some instances, carers. Once in force, the draft Infected Blood Compensation Scheme Regulations 2025 will provide IBCA with the powers it needs to begin making payments to eligible affected people. We have committed that payments to affected people will start by the end of 2025.
The Government also recognise that delivering justice is much more than financial compensation. I am continuing to work with the Department of Health and Social Care, taking forward the inquiry’s recommendations to ensure that everything is done to prevent further such tragedies in the future.
My personal commitment to this work, and the people impacted by it, remains steadfast. The Government are acting on the findings of the inquiry. We will continue to work with the Infected Blood Compensation Authority to ensure compensation is delivered as swiftly and compassionately as possible to everyone who so greatly deserves it.
[HCWS525]
(1 week, 5 days ago)
Written StatementsLord Kirkhope of Harrogate has been appointed as a full representative of the Parliamentary Partnership Assembly in the place of Lord Lamont of Lerwick.
[HCWS524]
(2 weeks, 2 days ago)
Written StatementsToday, the “Infected Blood Compensation Authority Framework Document” will be published on gov.uk and ibca.org.
The framework document is a core document for an arm’s length body. It provides clarity between the role of the Cabinet Office as sponsor Department, and the Infected Blood Compensation Authority as an operationally independent organisation. The agreement in the framework document follows standard guidance for sponsor Departments and arm’s length bodies, as set out in managing public money guidance from HM Treasury. The framework document has been agreed between Cabinet Office, the board of the Infected Blood Compensation Authority and HM Treasury.
Publishing this document, which sets out how the relationship between the Cabinet Office and the Infected Blood Compensation Authority will operate, is an important demonstration of the commitment of the Government and the authority to transparency for victims of the infected blood scandal.
[HCWS509]
(2 weeks, 6 days ago)
Commons ChamberLast month, I laid regulations, which, subject to parliamentary approval, will give the Infected Blood Compensation Authority the powers that it needs to pay compensation to all eligible people by all routes. My aim is for the regulations to be enforced by 31 March to enable IBCA to begin payments to all eligible groups this year.
Last year, I was contacted by a constituent who tragically lost her husband to infected blood and I am continuing to support her. There is an understandable lack of trust between victims and the authorities after such a long wait for justice, and my constituent is concerned about the urgency in compensating affected families. When he spoke in the House last month, the Minister committed to producing an easy-read version of the regulations. Can he say when that is likely to be published and will he commit to full transparency on the progress of settling claims?
I will publish a simplified version of the document explaining the infected blood compensation scheme by the end of the month. Transparency is vital. IBCA, although an independent body, is committed to being open with the community and publishes monthly figures showing progress on compensation claims.
I welcome the Minister�s progress in this area. I visited IBCA on 30 January and was impressed by the professionalism of the team. Since then the Minister has made himself accessible so that I can give him feedback. One issue that has come up is the need for recipients of payments to sign non-disclosure agreements or terms. I am anxious that misunderstandings do not arise as a consequence of that. Can the Minister use his good offices to implore IBCA to explain why that happens? If IBCA cannot do that, perhaps he can explain to the House why such agreements might be necessary.
I am very grateful to the right hon. Gentleman for his work as Paymaster General. Indeed, I was pleased to facilitate his recent visit to IBCA and am grateful to him for the constructive approach that he continues to take. On the specific issue that he raises around the contracts that IBCA has entered into, I can say that I entirely agree with him about the need for transparency, and that is something that I am re-emphasising to IBCA.
A closer, more co-operative relationship with the EU is in the UK�s national interests as it will grow the economy, boost living standards, protect our borders and keep the UK safe. I am taking forward discussions with my EU counterpart Commissioner Maro� �ef?ovi?. The UK-EU leaders summit on 19 May will be an important opportunity to drive forward this agenda.
Palmerston said that this country has no eternal allies and no perpetual enemies, only interests which are eternal and perpetual. Does the Minister agree that it is in our eternal interests for there to be security in Europe and a sovereign Ukraine? Will he congratulate the Prime Minister on his statesmanship and leadership at this dangerous moment?
I certainly join my hon. Friend in congratulating the Prime Minister on the careful and considered leadership he is showing at a time when we face a once-in-a-generation moment for the collective security of our country and our continent. We remain absolutely committed to securing a lasting peace in Ukraine. On 2 March, the Prime Minister hosted international leaders in London to discuss support for Ukraine. As he said,
�we will never choose between either side of the Atlantic�the past week has shown that that idea is totally unserious.��[Official Report, 3 March 2025; Vol. 763, c. 25.]
We are stepping up on defence and security, and we know that Europe is stepping up, too.
Last week, I was in Ukraine, where, following Trump�s betrayal, the need for European solidarity to defend our democracy has never been more evident. The unintended consequences of Brexit for our economy and our security are certainly very real. It is increasingly obvious that the UK cannot afford the luxury of splendid isolation. In the spirit of nothing being off the table, will the Minister�s Department start a discussion in government about the UK moving to customs union and single market membership? The closer and the quicker we align with our European partners, the safer we will all be.
I always thought the SNP�s policy was one of splendid isolation, but that is certainly not the UK Government�s policy. Indeed, we are working very closely with our European partners. That is precisely the leadership that the Prime Minister has been showing in the past week.
First, we have a strong and proud tradition over centuries of free trade here in the United Kingdom, and we will continue to make the case for that. With regard to our specific trading relationship with the United States, the hon. Gentleman will have seen that, after conversations between the Prime Minister and the President in the Oval Office last Thursday, we wish to deepen our trading relationship with the United States. Specifically on Northern Ireland, I completely understand his point, and we will continue to monitor the impact of any such policy on Northern Ireland.
I am grateful to the Paymaster General for his response, but it sounds as though he has not yet had any conversations with his EU counterparts on the issue. I appreciate that he has a meeting on 19 May, but I am sure he will understand that tariffs may come much sooner than that. That being the case, will he undertake, first, to talk to his European counterparts and secondly, to come and give a statement to this House as soon as he has done so, so that we can understand that the Government are preparing for such an eventuality? Can he also make it clear to our friends in Europe that should trade and manufacturing be disrupted in Northern Ireland, we will not hesitate to use our powers under article 16 of the Windsor framework to protect businesses there?
To reassure the hon. Gentleman, the Windsor framework taskforce is based in the Cabinet Office and I regularly discuss issues on Northern Ireland with my European counterparts. I can assure him that I will speak to Maro� �ef?ovi? on a number of occasions prior to 19 May. I hope the hon. Gentleman will take that reassurance. He should also be reassured that we will, of course, always act in the best interests of the people of Northern Ireland.
Two weeks ago, I was glad to read reports in The Times that the Government intend to introduce a youth mobility scheme between the UK and the EU. That would be good for our economy, while providing young British people with the opportunity to work and study abroad. That is what the British public want, with new polling showing that more than two thirds of the UK population are in favour of such a scheme, but last week the Home Secretary ruled it out. Will the Minister do the right thing, remove the unnecessary barriers facing young people in the UK and commit to negotiations on an EU-UK youth mobility scheme?
The position of the Government is unchanged; we have no plans for a youth mobility scheme. We will, of course, always listen to sensible proposals from the EU, but they have to be within our red lines of no return to freedom of movement, no return to the single market and no return to the customs union.
(3 weeks, 6 days ago)
Written StatementsThe covid-19 pandemic impacted each and every person in the UK. The work of the UK covid-19 inquiry is crucial in examining the UK’s response to and impact of the covid-19 pandemic. There are evidently lessons to be learned from the pandemic and the Government are committed to closely considering the covid-19 inquiry’s findings and recommendations, which will play a key role in informing the Government’s planning and preparations for the future. Quarter 1 Quarter 2 Quarter 3 Cumulative total Cost of UK covid-19 inquiry response unit staff (including contingent labour costs) £5,049,000 £5,303,000 £5,674,000 £16,026,000 Number of UK covid-19 inquiry response unit staff (full-time equivalents) 280 284 287 NA Quarter 1 Quarter 2 Quarter 3 Cumulative Total legal costs £4,236,000 £5,818,000 £6,050,000 £16,104,000
The Government recognise the unprecedented and wholly exceptional circumstances of the pandemic, and the importance of examining as rigorously as possible the actions the state took in response, in order to learn lessons for the future. The inquiry is therefore unprecedented in its scope, complexity and profile, looking at recent events that have profoundly impacted everyone’s lives.
The independent UK covid-19 inquiry publishes its own running costs quarterly. The chair is under a statutory obligation to avoid unnecessary costs in the inquiry’s work—and she has been clear as to her intention to complete her work as quickly and efficiently as possible.
I would like to update the House on the costs to the UK Government associated with responding to the UK covid-19 inquiry.
Figures provided are based upon a selection of the most relevant Departments, are not based on a complete set of departmental figures, and are not precise for accounting purposes. Ensuring a comprehensive and timely response to the inquiry requires significant input from a number of key Government Departments, including, but not limited to, the Cabinet Office, the Department for Health and Social Care, the UK Health Security Agency, the Home Office and HM Treasury, many of which are supported by the Government Legal Department. While every effort has been made to ensure a robust methodology, complexities remain in trying to quantify the time and costs dedicated to the inquiry alone.
It should be noted that alongside full-time resource within Departments, inquiry response teams draw on expertise from across their organisations. The staff costs associated with appearing as witnesses, preparing witnesses and associated policy development work on the UK covid-19 inquiry are not included in the costs below.
Breakdown of staff and costs
The Government’s response to the UK covid-19 inquiry is led by inquiry response units across Departments.
Q3 number of UK covid-19 inquiry response unit staff: 287 full time equivalents.
Q3 cost of UK covid-19 inquiry response unit staff: £5,674,000 (including contingent labour costs).
Financial year 2024-25 (Q1-3), total cost of UK covid-19 inquiry response unit staff: £16,026,000 (including contingent labour costs).
Total inquiry response unit legal costs
Inquiry response units across Government Departments are supported by the Government Legal Department, co-partnering firms of solicitors, and legal counsel. These associated legal costs (excluding internal departmental advisory legal costs) for Q3 are below.
Q3 legal costs: £6,050,000.
Financial year 2024-25 (Q1-3), total legal costs: £16,104,000.
[HCWS481]
(1 month, 1 week ago)
Commons ChamberMadam Deputy Speaker, I would like to provide an update to the House on the progress made to provide compensation to victims of the infected blood scandal.
In May 2024, the infected blood inquiry’s report exposed a catalogue of failures at the systematic, collective and individual levels. Thousands of lives were needlessly lost, and too many people continue to suffer as a result of failures stretching back decades. I welcome the commitment across the House to holding the Government to account on responding to the inquiry’s recommendations, and I will continue to provide regular updates on the Government’s progress.
In December 2024, I published the Government’s response to the infected blood inquiry. In that response, on behalf of the UK Government and working closely with the devolved Governments, I accepted either in full or in principle all 12 of the inquiry’s recommendations. I will provide a further update on those recommendations in May of this year, as requested by the inquiry.
I will now update the House specifically on the inquiry’s recommendation on compensation. In August 2024, I established the infected blood compensation scheme in regulations. That enabled the Infected Blood Compensation Authority to begin making compensation payments to people who are infected. I was pleased that IBCA delivered on our shared commitment to make the first compensation payments by the end of last year. That was a significant step, and the work to progress payments quickly continues as an absolute priority.
Yesterday, I laid before Parliament the draft Infected Blood Compensation Scheme Regulations 2025. As those regulations are subject to the draft affirmative procedure, there will be an opportunity for parliamentarians to debate and approve them before they become law. When laying before the House the previous regulations to establish the scheme for people who are infected and are claiming compensation under the core route, I made a commitment on the Floor of this House that those regulations would come into force by 31 March, subject to parliamentary approval. I would welcome the support of the House in approving those regulations, enabling us to deliver compensation to those who deserve it as quickly as possible.
I am fully aware of how important it is to the House, and to the many victims of this appalling scandal, that the Government provide clear and regular updates on our progress in establishing the infected blood compensation scheme. I have therefore come before the House today to explain the steps that have been taken and what they mean.
Once approved by Parliament and in force, the Infected Blood Compensation Scheme Regulations 2025 will provide IBCA with the powers it needs to begin making payments to eligible affected people. By way of a reminder, those affected include partners, parents, children, siblings and, in some instances, carers. Those people have suffered terribly from the impact of infected blood on their loved ones, and these regulations mark a significant milestone for them. The Government will do all we can to support IBCA’s aim of the first compensation payments to eligible affected people being made before the end of this year, and by laying these regulations we are a step closer to achieving that aim.
As we set out in August, the infected blood compensation scheme is tariff-based. The tariffs are intended to work in a way that would be appropriate for the majority of people applying to the scheme. However, we know that the impact infected blood has on people’s lives varies hugely. Each person’s experience is unique and heart- breaking, and the Government recognise that there are some exceptional cases where the level of compensation offered through the core route does not sufficiently address a person’s individual circumstances. For that reason, the Government have provided for higher levels of compensation for specific awards through the supplementary route, where people can demonstrate their eligibility. The regulations I have laid before Parliament set out the details of that supplementary route.
Once in force, the regulations will allow IBCA to make payments to eligible people through both the core and supplementary routes. All applicants will need to go through their initial core route assessment before applying to the supplementary route, but doing so will not delay payment of that initial core compensation offer. The regulations I have laid propose to restate and consolidate the Infected Blood Compensation Scheme Regulations 2024, which were approved by Parliament in October last year. We have done that primarily for reasons of simplicity. Having a single set of regulations that consolidates the provisions means that it has been possible to cover all compensation routes for all eligible people in a single place.
Alongside the draft regulations, yesterday we published an accompanying explanatory memorandum and equalities impact assessment. We also updated the compensation scheme explainer on gov.uk. I have heard from the community the importance of a simpler document, so I commit today to the publishing of a wider, simpler document. I have already engaged with several hon. and right hon. Members across the House in recent days, and I will continue to do so on the substance of these regulations in the coming weeks.
I would also like to welcome the progress being made in delivering compensation. In addition to the over £1 billion of interim compensation payments that have been paid so far, IBCA has now invited 113 people to claim compensation. So far, 23 offers have been made, totalling over £34 million, and 14 offers have been accepted and paid, totalling over £13 million. IBCA remains on track to invite 250 people to apply by the end of March, and it will continue to publish its monthly statistics on its website. However, this is only the beginning, and there is much more work to do.
This week, IBCA set out its plans to open the compensation service in stages to make sure it is effective and secure for all those claiming. This decision was taken independently of the Government by the IBCA board. The groups that IBCA will work through as it builds the claim service will be as follows. The first will be people who are living infected and are already registered with a support scheme. IBCA already has the details of those people through the infected blood support schemes, and it began making payments to this group in 2024. IBCA intends to accelerate the number of claims it is processing from April.
The second stage will be people making supplementary claims. The regulations I am laying provide IBCA with the ability to process these claims. As IBCA develops its service, this will it to process the different types of evidence needed for supplementary claims and allow people to settle their claims in full as quickly as possible. People who have registered estates are in the third group IBCA has set out. This is where an estate has already been verified as eligible for compensation through the interim payment scheme that I announced in October last year. This will ensure that significant compensation can reach multiple people, who could include both those who are infected and those who are affected.
People who are affected and linked to a registered infected person or a registered estate will be in the fourth group. If an infected person or an estate is registered, this will allow IBCA to progress an affected person’s claim more quickly. The fifth group that the service will be developed for is people who are infected, but not registered with a support scheme. The sixth group will be people who are either applying on behalf of an infected person who has not previously been registered with an infected blood support scheme, or people who are affected and not linked to a registered claim. IBCA expects that it may take slightly longer to work through the claims of people who have not previously been registered for compensation.
The IBCA board assures me that this is in no way intended as a prioritisation of different claimants, but is the best way of building the service so that IBCA can get to the point where it can progress all claims as quickly as possible. Crucially, it does not mean that all claims in each group need to be finished before developing and opening the service for the next group.
IBCA has communicated its decision on its website and through the regular community update, and it has written to members of the infected blood community and right hon. and hon. Members with whom it has previously engaged to inform them of its plans. Determining these groupings is a heavy responsibility, and I am pleased that IBCA sought feedback from the infected blood community in reaching this decision. The community must, after all, be kept at the centre of all this work.
While the roll-out of the scheme is an operational decision for IBCA as an independent body, I fully support its commitment to moving forward as swiftly as possible, and I was encouraged to see the dedication of its staff and leadership in my visit to the organisation last month. As compensation applications increase, I know that IBCA is determined to ensure payments are made to people as soon as possible. I will set out more detail on this in due course, but it will include key performance indicators that IBCA will be working towards to make sure that compensation claims are dealt with effectively and efficiently. Of course, decisions on the parameters of and eligibility for the scheme remain ones for the Government, subject to parliamentary approval, as is set out in the regulations I have laid, and are not impacted by IBCA’s decisions.
Let me conclude by saying that in laying these regulations, we are one step closer to having the entire infected blood compensation scheme fully established in law. I understand the importance of providing an opportunity for everyone across the House to debate this matter. This will be another significant moment for all those who have waited too long. On 30 January, I was able to meet a number of representatives from the community to update them on the Government’s plans. As ever, I found it an invaluable experience, and I am hugely grateful to those who shared their thoughts and experiences.
On my appointment to this role in July, I was determined to meet the first statutory deadline of 24 August for the first set of regulations. Over the past seven months, I have been insistent to my officials and the community on the importance of making sure that, after 40 years of injustice, justice is now finally being delivered and compensation rightly being paid. The Budget announced £11.8 billion of funding for this compensation scheme, showing the scale of this Government’s commitment to concrete action. I hope parliamentarians across both Houses will support the regulations, so we can finally focus solely on delivering compensation to those who have waited for justice for far too long. I commend this statement to this House.
I remind the Minister that statements should be limited to 10 minutes and that it is courteous to let the Speaker’s Office know if a statement will exceed this time. The Opposition will of course be allocated additional time. I call the shadow Minister.
I thank the Minister for his very thorough statement and for advance sight of it.
I want to start by thanking the campaigners and victims who have spent years pushing for justice for this terrible tragedy that occurred over a number of decades. The previous Conservative Government took the first steps towards recognising the horrific wrong inflicted on so many patients and their loved ones in opening and concluding the inquiry into the infected blood scandal, but particular acknowledgement must go to my right hon. Friend the Member for Salisbury (John Glen) who worked so hard when he was Paymaster General to make sure that victims and their families could at last receive some degree of justice.
I welcome the progress the Government have made since the election. Parliamentary politics inevitably focuses on division and there is plenty on which we profoundly disagree with the Government, but on this matter we speak as one. There is nothing of substance that the right hon. Gentleman and his Department are doing that is meaningfully different from what we would have done if we had still been in government. We will of course review the legislation on the next stage of the infected blood compensation scheme, but the Minister and all who are campaigning for justice can be assured that we will support the Government in their efforts.
We welcome the start of compensation payments by IBCA, but we know that victims have raised concerns about the pace of processing applications for compensation. I hope the Minister can confirm what measures he is putting in place to ensure that the processing capacity within the authority is adequate and that application processing can be sped up, because the next phase of the compensation framework will mean that applications to the authority could increase by tens of thousands. All victims and their families need to know what is being done to ensure that those claims can be processed at pace.
I am concerned by reports that only a very small fraction of those who may be eligible to claim compensation have been contacted so far; one estimate puts it as low as 0.2% of possible claimants, although I recognise that such estimates can sometimes be out of date. I hope the Minister will be able to provide some clarity on the percentage of those believed to be eligible who have been contacted so far. I know that the Minister will understand the need for the Government to communicate clearly to all who may be eligible to encourage them to apply.
That reinforces the importance that must be placed on processing claims quickly. Those who are eligible must have confidence that their claims will be accurately and quickly processed so that they receive the payment they are entitled to as soon as possible. I appreciate, of course, the staged manner in which the authority is taking claims and the need to prioritise certain claims, but I hope the Government can reiterate clearly that no one needs to worry about the capacity within the authority and the system, particularly in relation to claims that will be processed in the later stages.
I ask the Minister to offer some clarity on his assessment of whether the funding allocated so far will cover all the expected claims. We know that up to 140,000 relatives could apply for compensation as a result of the planned expansion of claim eligibility. While the Government understandably cannot provide an exact estimate of the total funding required, that would go some way to offering reassurance to victims and their families that the funding for the authority to compensate in full all who suffered harm or loss and for all the operational requirements of the authority is properly provided for.
All of us in this House understand the scale and damage of this scandal and recognise the immense efforts of victims and their families in pushing for justice, and we welcome the laying of the regulations. I conclude by repeating my assurance on behalf of His Majesty’s Opposition that we will work with the Government to ensure that everyone who is eligible is aware and that they receive the compensation that they need and deserve as quickly as possible.
I will make sure that your stricture about time is properly communicated across Government, Madam Deputy Speaker.
May I start by echoing the comments of the hon. Member for Kingswinford and South Staffordshire (Mike Wood) about my predecessor as Paymaster General, the right hon. Member for Salisbury (John Glen), who did so much in government to push this forward? Just as I offered cross-party support when shadowing him, the continued cross-party support today is very important in respect of the speed at which we are able to push forward with the legal framework we are putting in place.
On the issue of speed, I am restless for progress. While IBCA is of course an arm’s length body and has operational independence, I will none the less have more to say in due course about key performance indicators, as the House will want to continue to raise the speed of payments being made to constituents.
I entirely agree with the hon. Gentleman’s comments about clarity of communication. I am forever emphasising the need for simple explainer documents on what are complex regulations. Finally, the Government have already allocated £11.8 billion in funding for the operation of IBCA and for compensation, and we are committed to compensate all the victims of this terrible scandal.
I welcome my right hon. Friend’s statement and the progress he has made in seven months, not least on the £11.8 billion he secured in the Budget; he deserves credit for that. It is regrettable that we lost a year from Sir Brian Langstaff’s second interim report in which he gave his final recommendations on compensation, stating that the Government had no reason to delay setting up the compensation process. I know my right hon. Friend is aware that there are still concerns about the tariff, particularly among those infected with hepatitis C and those who endured unethical testing. Does he agree that, while we must move ahead with all haste to get people the justice they deserve, IBCA must have flexibility in its decisions when dealing with those who feel that the tariff does not recognise the suffering they have endured?
I pay tribute to my hon. Friend for the work he does as chair of the all-party parliamentary group on haemophilia and contaminated blood. Obviously the tariffs were set on the basis of the expert group chaired by Sir Jonathan Montgomery and I compliment him on the work he did in that regard. However, the tariffs and the scheme also recognise particular individual circumstances and cases that are more complex. That is why the supplemental route is being put in place. I would add that I saw when I visited IBCA—I understand that my hon. Friend will be visiting shortly—the sympathetic, compassionate approach being taken with regard to evidence, given how long ago so much of this happened.
I call Liberal Democrat spokesperson.
I thank the Minister for advance sight of his statement.
The Liberal Democrats are glad to see the introduction of this legislation and the extension of the infected blood compensation scheme. This scandal is a chilling story of people being failed not only by the medical professionals who treated them but by the NHS that should have been responsible for the safety of their treatment, and by a series of Governments who should have prevented the scandal from ever taking place.
We are glad that the new regulations will move the victims, both those infected and those affected, closer to long overdue justice. However, we are deeply concerned by the speed at which victims have been receiving compensation, with only 25 people having been invited to claim by December last year. It is right that the Government are now widening the scheme so that compensation reaches many more people as soon as possible.
It is also crucial that there are mechanisms in place to ensure that the concerns of the charities, organisations and affected individuals are heard. To that end, and to provide confidence to victims and their families, will the Minister outline a timeline for when all victims can expect to have received their long overdue compensation? Furthermore, will the Government introduce a duty of candour on public officials so that such a scandal is never repeated?
The hon. Lady is absolutely right that this scandal goes across decades and across Governments. While compensation is obviously one of the crucial recommendations, there are a total of 12 recommendations from Sir Brian Langstaff, on which I will be updating the House in due course. At present, IBCA will meet its target of 250 people by the end of next month. The approach it is taking is one of test and learn. That enables IBCA to scale up more quickly to be able to do what we all want it to do, which is to get compensation as quickly as reasonably possible to those who need it. I would expect the first payments to the affected to begin before the end of this year. Finally, on the duty of candour, which is another of Sir Brian Langstaff’s recommendations, I expect to be introducing legislation to this House on that before 15 April, which, of course, is the Hillsborough anniversary.
I thank my right hon. Friend for his statement. I want to focus on what he said about the progress being made in delivering compensation for victims and their families. I recently met a constituent of mine, Sue Sparkes, who lost her husband Les owing to infected blood in 1990. She is concerned that it will take many, many years to make all these payments. I do not doubt my right hon. Friend’s commitment and passion on this issue to tackle injustice and deliver the culture change that is needed, but will he assure Sue and me that every lever of government is being pulled to ensure that all payments to infected and affected individuals are made as a matter of urgency?
I can certainly give that assurance both to my hon. Friend and to his constituent, Sue. The Government will continue to push this forward as quickly as is reasonably possible. I am conscious of the strength of feeling, and I am also conscious that victims have waited decades for justice, and that need for speed is recognised across Government.
Every Member of this House should welcome this statement, as I certainly do, as there is no greater horror imaginable than becoming chronically sick as a result of what ought to be a routine medical procedure—a blood transfusion. Will the right hon. Gentleman, following on from the previous question, ensure that these matters are dealt with promptly? Will he reflect on what the report into these matters describes as institutional failures? The National Audit Office looked at compensation for a range of scandals and concluded:
“There is no central coordinated approach when government sets up new compensation schemes resulting in a relatively slow, ad-hoc approach.”
The report recommended that the Cabinet Office reviews its arrangements to
“allow compensation schemes to begin and operate in a more timely…and effective manner”.
When the Minister returns to the House, will he reflect on that recommendation and perhaps say to the House what the Government will do in response?
The right hon. Gentleman makes a powerful point, and what is crucial, whether it is this compensation scheme or others that have been run by Government, is that we learn the lessons between the different compensation schemes and we learn best practice. I absolutely agree with him that that is crucial with this compensation scheme, too.
I thank the Minister for his statement. Brian Heatlie, a haemophiliac, was given infected blood products in 1982 at the age of five. As a result, he died in 1996 at the age of 18. His devoted parents, Lynda and James, from New Mills in my constituency of High Peak, have been waiting 28 years for compensation, and they are now in their 70s. Can the Minister confirm that the new regulations will mean that it may be possible for victims who have lost loved ones in this scandal, such as Lynda and James, to receive both their own compensation and compensation for the estate of their loved ones?
I think I speak for the whole House in sending our sympathies to Lynda and James for the indescribable sense of loss and the experience that they have been through over so many years. The answer to my hon. Friend’s question is yes. These consolidated regulations are for the estates of infected people, but also for the affected, too. But I know, and the whole House would agree, that no amount of money can make up for that awful experience.
I thank the Minister most sincerely for his statement. Nobody in the House is not reassured by what he has said. He also referred to the regional Administrations and how this will affect them, and he has had those discussions with them. There are reports today that only 0.2% of eligible family members have been contacted about the scheme, and there are concerns that the scheme does not have the capacity to cope with the numbers of potential applicants. Can the Minister outline how he will ensure that there is capacity for all those families to have a sense of recognition and to be definite about a form of restitution?
First, in terms of numbers, as I indicated, IBCA is operating a test and learn approach that then allows it to scale up. It will scale up its capacity alongside that, to ensure that it has the capacity it requires to process the claims. As I indicated, I visited IBCA last month. I can already see that scaling up starting to take place, and the hon. Member can certainly give assurance to his constituents that the Government will continue to do all we can to ensure the swift delivery of compensation.
I thank my right hon. Friend for today’s update. My West Dunbartonshire constituent, Fiona, was infected with hepatitis B following blood transfusions in 1954 and 1985. Fiona is apparently not entitled to any form of support or compensation payment because of missing medical records and because of receiving a transfusion both before and after the 1972 cut-off relating to screening for hepatitis B. Will the Minister agree to meet my constituent and me to discuss this matter and ensure that she and others affected in similar circumstances—apparently a small number—can receive compensation and justice under this Labour Government?
Generally, with regard to evidence, the Infected Blood Compensation Authority has said that when an individual is invited to make their claim, it will aim to gather some of the information, including medical records and information about an applicant’s condition and severity, from organisations that already have it. That should mean that those claiming will be asked for the least amount of information possible. I know that IBCA is currently considering what guidance can be provided for people ahead of making a claim. On the specific case of my hon. Friend’s constituent, Fiona, if he sends me the details, I am more than happy to look into it.
May I thank the Minister for the thoroughness and thoughtfulness with which he has made his statement? I think he would agree that there are still issues around speed, quantum, flexibility and care. Am I right in thinking that IBCA does not have any flexibility about the amount of damages paid? If so, can he give a rough indication of what sort of compensation is paid when someone has lost their life as a result of being poisoned by the NHS? Is it the case that people have to make an individual settlement and agreement on what they will accept? If so, is there any professional support that someone, who might be quite ill, can get before signing on the dotted line and possibly signing away their rights to more compensation than they might otherwise receive?
On the right hon. Gentleman’s point about tariffs, they have been set out and published. There are then assessments to be made about severity within the tariff bands. There is also, as I have indicated, the supplementary route for more complex cases. I cannot give him a single figure across these cases as they obviously vary, but the House will gradually see the overall amount being published by IBCA.
On the right hon. Gentleman’s second point, a victim making an application to the IBCA will be given a particular claim manager—I met the first claim managers only in recent weeks—to speak to and guide them through the process, which is crucial. I know that the culture imbued by Sir Robert Francis is an enabling one about helping victims, particularly with evidence. I have also signed off both legal support and financial support, because it is about receiving what are, in many cases, life-changing sums of money.
May I first thank my right hon. Friend for the update? Despite his sterling efforts—I really mean that—the process has taken far too long. Victims are dying at the rate of two per week, never having seen the compensation they deserve. Victims are very much unaware of, and desperate to understand, what and how much compensation they might even be due under the process.
Can the Minister say how many of the 5,000 infected victims will be invited to apply to the scheme during 2025? Has he considered, or is there potential to consider, allowing victims to take support scheme payments as a lump sum without any reductions?
On people’s having a sense of the amount of money they will get, the Government published explainer documents in August last year—and in recent days—that are on the Government website. The Infected Blood Compensation Authority is intending to publish a compensation calculator for the infected core award by the end of March.
On my hon. Friend’s other points, the number of victims paid will be regularly published by the IBCA during the course of the year. The payments to the infected have started, and I expect payments to the affected to begin before the end of the year. As regards the support schemes, one change that the Government made was to allow both a lump sum payment and the continuation of the support schemes. That came through from the consultation that Sir Robert Francis undertook during the general election campaign. I have made that change to the scheme, and how that works precisely is set out in the explainer document.
I am grateful to the Paymaster General for the update; indeed, I am grateful that he has given several updates to the House. My North East Fife constituent was infected a number of years ago and involved in the campaign for a long time. He has shared concerns about the evidential standard expected of claimants, particularly in relation to medical records. Indeed, his lawyers have told me that they have concerns that case managers are not correctly interpreting the initial date of infection because medical records are not available to substantiate that. They also have concerns that the Australia antigen has not been properly understood as an indicator of HBV. Is the Paymaster General aware of those concerns? Can he comment on them?
The hon. Lady is entirely right to raise the issue of evidence. There is the specific issue that she referred to, but there is also a far more general problem about incidents often being from a long time ago. We also know that in some cases there was deliberate destruction of records. The level of evidence is therefore clearly a significant issue. As I have indicated, when I visited the IBCA, I heard from claim managers about the approach they are taking and the culture that is being imbued—an enabling culture—and about how the IBCA will aim to gather some of the information to assist victims, which I think will be a vital part of the process.
I welcome my right hon. Friend’s statement and his commitment to this issue. Will he say a little more about how he is working with colleagues in Scotland to drive forward the final compensation scheme? I share the concerns already expressed by hon. Members across the House about the need for speed in ensuring that victims receive the compensation that they so rightly deserve.
I assure my hon. Friend that I work closely with the devolved Administrations on the issue of compensation. There is a broader point as well: events that took place in the 1970s, 1980s and beyond occurred in the pre-devolution age. Over the next few months, as we look to implement the rest of Sir Brian Langstaff’s recommendations, partnership work with the devolved Administrations will become even more important.
I thank the Paymaster General for an advance copy of his statement. I recognise his sincerity, and the hard work that he and his colleagues are putting into progressing this vital compensation scheme. I also understand the need for him and his colleagues to take small initial steps to test their systems and processes, but as others have said, legal representatives fear that many will die while they wait, and justice delayed is justice denied. Does he really think that is good enough, given the numbers involved? Will he consider strengthening the authority’s teams who are processing these claims, so that the pace can be rapidly accelerated, and so that they can meet the forthcoming key performance indicators to which he referred? Finally, the last time we spoke about the scheme in the Chamber, he undertook to look at the role of voluntary organisations that provide vital support to claimants, and to consider putting funding for them on a statutory basis. Will he comment on that as well, please?
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.
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?
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.
I thank the Paymaster General not only for his statement, but for the clarity and commitment in his answers. As he may remember from previous occasions in the Chamber, I have the personal experience of having lost a very close family friend in the 1990s who was a victim of this. His widow died without compensation, and his children are now among those waiting to hear what will happen. I thank the Minister for his application and commitment, but as others have mentioned, there remains the issue of speed and best practice going forward. He mentioned that he will simplify the process. Can we have updates from him in future on what the Government are doing to examine best practice, and how can future victims of such scandals be assured that they will not have to wait as long as 40 years?
As on the last occasion, I express my sympathies to the hon. Lady for the loss of her family friend back in the 1990s. Of course, I am always looking to share best practice, as I said a moment ago to the right hon. Member for South Holland and The Deepings (Sir John Hayes), who is no longer in his place. That is vital. I can also give the hon. Lady the undertaking that I will continue to update this House, as I hope right hon. and hon. Members have seen me do over the past seven months. There will also be a debate on the regulations. I will have to give an update on the 12 recommendations from Sir Brian Langstaff by the May deadline, but IBCA will also provide regular updates via our newsletter, and I refer her to those as well.
(1 month, 2 weeks ago)
Written StatementsIn August 2024, I established the infected blood compensation scheme in regulations. This enabled the Infected Blood Compensation Authority (IBCA) to begin making compensation payments to people who are infected and the work to progress payments quickly continues as an absolute priority.
Today I laid before Parliament the draft Infected Blood Compensation Scheme Regulations 2025. These regulations need to be debated and approved by both Houses before they can come into force. Once in force, the regulations will provide IBCA with the powers it needs to begin making payments to eligible affected people (such as partners, parents, children, siblings and, in some instances, carers) this year, and to make payments to eligible people through the supplementary routes. This is in addition to maintaining the core route for eligible infected people as established last year. As we set out in August, the infected blood compensation scheme is tariff-based, with the core route setting out tariffs which are intended to work in a way which would be appropriate for the majority of people applying to the scheme.
The Government have published an accompanying explanatory memorandum and equalities impact assessment alongside the regulations on legislation.gov.uk. On gov.uk, we have published an updated compensation scheme explainer and an addendum report from the expert group.
I would also like to welcome the progress being made in delivering compensation. In addition to the over £1 billion of interim compensation payments we have paid, IBCA has now invited 113 people to claim compensation. So far, 23 offers have been made, totalling over £34 million and 14 offers have been accepted and paid, totalling over £13 million. IBCA remains on track to invite 250 people to apply by the end of March and will continue to publish the monthly statistics on its website. However, this is only the beginning, and there is much more work to do.
By laying these regulations, we are one step closer to having the entire infected blood compensation scheme fully established in law. This will be a significant moment for all those who have waited for this for too long. My aim remains for these regulations to be in place by 31 March and I hope parliamentarians from across both Houses support these regulations so that we can finally focus solely on delivering compensation to those who have waited for justice for so long.
[HCWS443]
(1 month, 2 weeks ago)
Written StatementsI am today publishing the Government’s response to the House of Lords Statutory Inquiries Committee report, “Public inquiries: Enhancing public trust”.
Public inquiries are a valued and well-established part of our administrative justice system. Recent years have provided ample demonstration of their value. They are widely considered to be an independent, legitimate and trusted method of investigating complex issues of deep public concern. Inquiries have shown themselves to be a way to shed light on injustices of the past, and have provided a means for victims and survivors to finally have their voices heard, and to help to rebuild trust in national institutions.
The House of Lords Statutory Inquiries Committee was appointed last year to consider the efficacy and practice of inquiries established under the Inquiries Act 2005. The evidence it heard and the thoughtful report it published recognised that despite the value of inquiries, there is scope for improvements to make them more efficient and effective, and in particular, to ensure greater transparency and accountability in response to inquiry recommendations.
The Committee’s report is a valuable contribution to a timely discussion and the Government are grateful to Lord Norton and his colleagues for their report. Our response, which is published on gov.uk, signals my intention to build on this important work with a wider review of the policy and operational framework around public inquiries and I look forward to providing an update to Parliament on this work in due course.
[HCWS425]
(1 month, 2 weeks ago)
Commons ChamberWith permission, Madam Deputy Speaker, I wish to make a statement on the UK’s relationship with the EU. On Monday, in Brussels, the Prime Minister attended an informal retreat with the 27 EU leaders and Presidents von der Leyen and Costa. This marked a clear step forward for this Government’s reset of the UK’s relationship with the EU. He is the first British Prime Minister to join a meeting of European Council members since the UK left the EU. The Prime Minister discussed the common threats that the UK and the EU face, and the value that closer UK-EU co-operation on security and defence could bring. These were points that he also discussed earlier in the day, when he met the Secretary-General of NATO.
With the EU’s 27 leaders, the Prime Minister outlined a number of steps to increase co-operation on shared threats, including cross-border crime and illegal migration, while delivering growth and security at home. He called on Europe to step up and project strength, to keep up the pressure on Putin, alongside sustained military support to Ukraine, to put it in the strongest possible position this year. He set out a strong case for European security and defence: an ambitious UK-EU security partnership; a deeper role for Europe within NATO; the continued importance of small groups such as the joint expeditionary force; together with a continent-wide increase in defence investment. The Prime Minister was clear that the UK would play its full part in European defence and was ready to work together with the EU.
On Tuesday, we announced that the UK will welcome the Presidents of the European Council and the European Commission to the UK for the first UK-EU leaders’ summit, which will take place on Monday 19 May. This first summit will provide an opportunity to further strengthen the relationship between the UK and the EU, for the benefit of all our people.
On Tuesday, I attended the UK-EU forum in Brussels to discuss the shared challenges and opportunities facing the UK and the EU, opposite my EU counterpart, Maroš Šefčovič. I made the case that this Government will be guided by what I am calling “ruthless pragmatism” —working in the UK’s national interest to make people across the UK safer, more secure and more prosperous. The Government’s position is that it is in the British national interest to improve our economic, safety and security relationships with our nearest neighbours. We reject the ideological approach of the past and will take a hard-headed assessment of the British national interest.
As the Leader of the Opposition recently said:
“We announced that we would leave the European Union before we had a plan for growth outside the EU.”
She said:
“Those mistakes were made because we told people what they wanted to hear first and then tried to work it out later.”
This Government will end that chaotic, dogmatic decision making. We should be guided by the principle of mutual benefit, finding collaborative solutions to our common problems. We should be open-minded to proposals that deliver better outcomes for the British people, within the manifesto on which this Government were elected.
This Government have been clear that we are not hitting rewind. We are not undoing Brexit and we are not rejoining the single market or the customs union, but we are looking to make Brexit work in a ruthlessly pragmatic way. That is the spirit that we are taking into the discussions with the EU—not a zero-sum game, but a win-win for both sides, with people across the UK and the EU benefiting. Yesterday I met my EU counterpart, Maroš Šefčovič, and discussed how we can best work together to enhance co-operation in areas of mutual benefit. We are committed to staying in regular contact as we progress this work.
This Government were elected on a mandate to increase national security through strong borders, to increase people’s safety and to increase prosperity through growth. Our European friends have mutual interest in those priorities. It is those priorities that form the three pillars of the reset in our relationship: security, safety and prosperity. And I am pleased to say that on all three of those issues we are making progress. And work is happening right across Government, from the Prime Minister to the Chancellor at the Eurogroup and the Foreign Secretary at the Foreign Affairs Council.
There have been nearly 70 direct engagements between UK Ministers and their EU counterparts since we came into government, and we look forward to many more, including at the upcoming UK-EU summit. Some people make the false argument that we need to choose either America or Europe, but for this Government the UK’s national interest is paramount and demands that we work with both.
The Prime Minister made the point on Monday evening that the world today is very different from that in 2016, and even in 2024. In this time of change, this Government are stepping up to build alliances in a bid to make people safer and more prosperous. That is the core of our national interest, and I commend this statement to the House.
I call the shadow Chancellor of the Duchy of Lancaster.
I thank the Paymaster General for advance sight of his statement, and I am grateful to him for coming to the House today to give us a rendition of the speech that he gave in Brussels on Tuesday—I am sure that it sounded even better accompanied by a cool glass of Belgian Chardonnay and the promise of a long continental lunch.
I note that the Paymaster General described the Prime Minister’s meeting with 27 EU leaders this week as being an “informal retreat”. An informal retreat indeed—that is, one suspects, how these words will come to characterise this Government’s negotiations with the EU. The last Conservative Government took us out of the EU and, despite the attempts of the Labour party to frustrate the will of the people, into an era of our being a sovereign nation, which has brought major benefits.
Under the Conservative Government, we secured more than 70 trade deals with other countries around the world and, since leaving the EU, UK trade has increased from about £1.04 trillion in 2015 to £1.74 trillion last year. We ended the supremacy of EU law, we delivered on our promise to leave the common fisheries policy, and we delivered the fastest vaccine roll-out in Europe. We turned a page, and it is vital that the Labour Government do not turn it back.
The Paymaster General talks of ruthless pragmatism in our negotiations with the EU. I wonder whether this will be the same ruthless pragmatism that is bringing us the Chagos deal.Will it be the same ruthless pragmatism that has caused the Government to spend £9.4 billion a year on above-inflation pay rises for unionised sectors without any promise of reform? Perhaps it is the same ruthless pragmatism that saw the collapse of the £450 million AstraZeneca deal last week. When Labour negotiates, our country loses.
I have a great deal of respect for the Paymaster General—I hope he will do better than his friends and colleagues. He has talked to us about security, safety and prosperity—all very nice, but enough of the platitudes, let us talk about the plan. What do the Government actually want from the negotiations? What are the tangible gains they hope to make, and what are their red lines? We have heard about the customs union and a single market, but he knows that that is not enough. He says the Government “are not hitting rewind”, but we know the Government are open to dynamic alignment and a role for the European Court of Justice because he has twice declined to rule that out in this House. Going back to the ECJ for GB would be completely unacceptable.
On defence, the right hon. Gentleman mentioned the NATO Secretary-General’s plea to step up and project strength. Is that what the Government will do? I know the Secretary-General has been asking European countries for a marked increase in defence spending. What is the Government’s response to that? Will he confirm that NATO remains the cornerstone of our defence arrangements?
There was no mention of fish. A word of advice to the right hon. Gentleman: fish are very important, and they will be very important in these negotiations. What is the Government’s position? Will he commit to there being no reduction in our current fishing rights? It is reported that our friends and allies in the French Republic have said that nothing can be negotiated until fish are negotiated. Will he confirm that he has told them firmly and politely, “Non”?
There is no mention of free movement. I noticed the other day that the Home Secretary ruled out a youth mobility scheme. Is that Government policy or was that just the Home Office freelancing? I ask because last week in Westminster Hall the right hon. Gentleman seemed to be pretty open to the idea. What is the Government’s position?
On the Pan-Euro-Mediterranean convention—PEM—a Minister told the “Today” programme on 23 January that the Government were “not seeking” to join PEM. Later that day, the right hon. Gentleman said that the Government
“do not currently have any plans to join PEM”.—[Official Report, 23 January 2025; Vol. 760, c. 1091.]
On 26 January, the Chancellor of the Exchequer said that the Government were considering joining PEM, but then on 3 February, the right hon. Gentleman said in answer to a written question from the hon. Member for East Londonderry (Mr Campbell) that the Government
“do not currently have any plans”.
I would be grateful if he could tell us what the Government’s position is, and if he cannot, perhaps he would be good enough just to make up another one.
The Opposition believe there should be no backsliding on free movement or compulsory asylum transfers. We believe that no new money should be paid to the EU. We believe that no reduction in our current fishing rights should be given away. We believe in no rule-taking, dynamic alignment or European Court jurisdiction. We believe in no compromise on the primacy of NATO as the cornerstone of European security. That is what the Opposition believe; it is time for the Government to tell us what they believe. A future Government will not be bound by a bad Labour deal.
I thank the shadow Chancellor of the Duchy of Lancaster for his contribution. Of course NATO remains the cornerstone of our security; that has been a cross-party position for decades. He asks about plans and red lines. I refer him to our manifesto, which was put to the people last year, that contains those clear red lines of no return to freedom of movement, the single market or the customs union. He can see in that examples of what the Government are seeking to negotiate.
The hon. Gentleman talks about negotiating international agreements. There are many people from whom I would take advice about international agreements, but I hope the House will forgive me if the Conservatives—the party that managed to send hundreds of millions of pounds to Rwanda and all they got in return was sending some volunteers and most of their Home Secretaries there—are not at the front of the queue for giving advice on how to negotiate international agreements.
I give some credit to the Leader of the Opposition, who strikes a markedly different tone on this issue from that struck by the hon. Gentleman today. She admits freely that the last Government left without a plan for growth, and that, frankly, they ended up making it up as they went along. I was surprised that the hon. Gentleman did not begin his remarks by repeating that apology. Perhaps he has a different view than the one taken by his leader.
The hon. Gentleman talks about the jurisdiction of the European Court of Justice, but he was part of a Government who negotiated a role for the European Court of Justice in the Windsor framework. He talks about standards. This Government are committed to the highest standards, whether that is on product safety, employment rights or consumer rights. We believe in a race to the top on standards, not the race to the bottom that would be the dream of the Conservatives.
As the Government move forward, our test is the national interest. It is about making Britain safer, more secure and more prosperous. There is another test for the Leader of the Opposition, however. I see that she has put out a social media video about tests, which is worth a couple of minutes for mild entertainment if nothing else. The test for her is whether she will face down the ideologues in her party. Is she going to show some political courage and back the national interest, or is she just going to back down in the face of the ideologues in her party? On the basis of the hon. Gentleman’s contribution, I am not optimistic.
I call the Chair of the Business and Trade Committee.
I very much welcome the statement from my right hon. Friend, but the reality is that he has inherited a deal with the European Union that has knocked about 4% to 5% off our economic output each year. Certainly, the Business and Trade Committee heard in Brussels last week a clear message from the business community that we need to be as specific and as ambitious as we can be ahead of the reset summit with the President of the European Commission. What plans does the Paymaster General have to bring together the British business community and, indeed, the trade union community so that the Prime Minister can go into his summit with President von der Leyen clear-minded about just how ambitious our wealth creators want him to be?
The Chair of the Select Committee is entirely right about the involvement of civil society, trade unions and businesses. I am sure that he will have seen the comments of the managing director of food at Marks & Spencer only today, who said:
“We wholeheartedly support the Government’s plan to negotiate a Veterinary Agreement; the benefits would be significant, there is no discernible downside, and we will offer whatever help we can to aid the negotiations.”
There was a time when the Conservative party was on the side of business—clearly no more.
I thank the Minister for advance sight of his statement. I welcome much of the statement’s content—that the Government are serious in their commitment to resetting our broken relationship with the European Union—but what the Liberal Democrats want is action. The European Union is our closest neighbour and largest trading partner. I sense that the Minister knows that we have to get on with repairing the trading relationship which was so badly damaged under the former Conservative Government, so please let us get on and do it. The botched Brexit deal has been a complete disaster for our country, especially for small businesses, which have been held back by reams of red tape and new barriers to trade, costing our economy billions in lost exports. The Minister talks of pragmatic negotiation. Surely what is pragmatic is to drop the Government’s red lines and agree a new UK-EU customs union. It would be the single biggest step that the Government could take to unlock growth, and I cannot think of anything more pragmatic. Liberal Democrats will continue to call on the Government to do the right thing.
We are also disappointed by the Home Secretary’s comments at the weekend on ruling out a youth mobility scheme. Does that represent the Government’s stance? A youth mobility deal would be good for our economy, especially our tourism and hospitality sectors, while providing young British people with the opportunity to work and study abroad. It would be a win-win. Not only that, it is what the British public want. New polling shows that two thirds of the UK population are in favour of such a scheme. Does the Minister not agree that introducing a youth mobility scheme is exactly the kind of pragmatic negotiation that the Government should be prioritising?
I am grateful as always for the contribution of the hon. Lady; we had a fine debate in Westminster Hall last week. All I would say to her about speed, though, is that this Government are acting on the red lines in our manifesto around the single market, customs union and freedom of movement, on which we were elected and which delivered this majority last July. I looked at the Liberal Democrats manifesto and its plans for the relationship with the European Union, and it contained four steps. If we were choosing to do this in four different phases, we would be moving a lot more slowly than we are at the moment, so I hope the hon. Lady will welcome the progress we are making.
I know there is a lot of speculation on the issue of youth mobility. Of course, we consider sensible proposals in accordance with our red lines, but our position remains the same: there are no plans for a youth mobility scheme, and we have been clear that there will be no return to freedom of movement.
I guess I should not be surprised to hear the Conservatives trying to defend an impossibly bad deal for British business, which is why I am so relieved that the grown-ups are going to Europe and working out what is in the national interest. May I press the Minister on something that it is very clearly in the national interest to resolve with our European partners? National Grid estimates that it will cost the UK Exchequer £5 billion to £8 billion over this Parliament to have a differential emissions trading scheme between us and Europe. Pollution does not respect borders, and we all want to tackle the climate crisis. Can he confirm that resolving the issues around the carbon border adjustment mechanism will be on the agenda for the summit in May?
I am grateful to my hon. Friend, who I know has campaigned on this issue. Energy is very much a priority for the discussions—specifically the emissions trading scheme and linkage. The existing trade and co-operation agreement commits the UK and the EU to considering that.
The Minister rightly speaks about the importance of NATO, which is key to our defence strategy. However, I have real concerns about the negotiations taking place on the defence strategy and on working with the European Union. We on the NATO Parliamentary Assembly have often spoken about the role of PESCO—the permanent structured co-operation—and the procurement strategy. Different countries procuring different elements can run into some constitutional problems, which can be a problem over generations of procurement, and it is important that protocols are made now for how those two things interact. I ask the Minister not to sign up to European programmes without ensuring that we build in protocols, so that PESCO cannot undermine article 5 decisions. As it stands, the ideology of PESCO stands in the way of article 5 decisions. If the Minister would like to speak about this further, I would be happy to meet him.
I would be more than happy to speak to the right hon. Gentleman—I acknowledge his expertise in these matters. He refers to interoperability, which is hugely important. He will have seen that the Prime Minister met the Secretary-General of NATO on Monday. That sends out a signal that NATO remains absolutely fundamental; it is the foundation stone of post-war security and of our approach going forward. What we seek to do will be complementary to NATO, to build on our collective strength in these dangerous times.
British businesses are clear that they want the Government to cut paperwork, tackle the trade barriers that they face, and lower the cost of selling goods and services to our trading partners in the EU. The Leader of the Opposition said last week that the Conservative Government left the EU without a plan. Does the Minister agree that that is typical of the chaotic economic management of the Conservatives, and that once again it is up to the Labour Government to clean up their mess?
My hon. Friend is absolutely right. At least the Leader of the Opposition was candid about the chaotic decision making under the previous Government. Together with our friends and neighbours in the EU, we have over £800 billion-worth of trade. It is clearly in our national interest to lower trade barriers pragmatically in that space.
I am pleased that this Government are moving away from the ideological fantasies of the Conservative Government and taking a pragmatic approach to EU-UK relations. Passive divergence—doing nothing when regulations move forward in the EU—is increasingly a concern for British businesses. It leads to huge trade barriers in emissions trading, for example, which is badly hurting the UK economy. What does the Paymaster General propose to do about passive divergence?
We are not doing nothing. There are areas where this Government will be in a world-leading space. Let us look, for example, at what we are doing on employment rights and product safety. As I indicated earlier to the hon. Member for Brentwood and Ongar (Alex Burghart), the Government believe in a race to the top on standards, not a race to the bottom.
I welcome the increased number of British officers now working with Europol. Will the Minister tell me more about how we will work with our European partners to tackle transactional crimes such as people smuggling and drug trafficking?
My hon. Friend raises an important point. I am pleased that we have already increased our National Crime Agency presence at Europol. The speed with which we can share data is hugely important. When crimes are committed, those early hours and days are so important for catching those responsible. We want to work with the EU and international partners so that criminals have no place to hide on our continent.
Those in the fishing industry will have noted not only that the Minister did not mention fish in his statement, but that he did not respond to the question from the shadow Minister, my hon. Friend the Member for Brentwood and Ongar (Alex Burghart), about fishing. Will he give an assurance to those in the industry that there will be no sell-out—whether on fishing grounds, quotas, days at sea and so on—and that he will do absolutely nothing to worsen the industry?
The hon. Gentleman is right to mention fishing. I can tell him first and foremost that I will engage with the fishing industry and its representatives about the issues that they face, particularly in selling into European markets. We will of course advocate for the interests of our fishers, and ensure that we fulfil our legal obligations on the marine environment.
As a result of the previous Government’s bad deal, companies in my constituency tell me about the impact that the barriers to trade with the EU are having on their businesses, hitting profits and affecting jobs. Does the Minister agree that it would be foolhardy for this Government not to tackle those barriers and back British businesses?
My hon. Friend is absolutely right. We speak to businesses, and they want fewer barriers to trade. It is astonishing that the modern Conservative party does not seem to share that view.
I welcome the Minister’s statement on closer co-operation with the EU on defence and security, but on the day the Bank of England cut its growth forecast from 1.5% to 0.75%, does the Minister agree that the single biggest thing we could do to turbocharge our economy in the medium and longer-terms is to form a customs union with the EU?
We were elected on a manifesto that set out clear red lines, but of course there is significant economic advantage, not just to the United Kingdom but to citizens all across Europe, in the reset that we are now looking to take forward. Whether in making our citizens more prosperous, or in making them safer and more secure, that work will deliver for Britain.
I warmly welcome the Minister’s statement. Isn’t it nice to finally have a Government who want to work with, rather than alienate, our European partners? In that spirit, does he agree that there is a chasm between the thin, last-minute deal that the previous Government negotiated—which the Leader of the Opposition now derides as a deal “without a plan”—and the red lines that he and his Government have set out? That is the landing zone that I hope the Government will get to as soon as possible.
My hon. Friend is absolutely right. The chaos of the previous Government did extraordinary damage to this country on the international stage, and frankly it sullied our international reputation. I am pleased that the Leader of the Opposition at least understands the chaos that the Conservatives caused our economy. My hon. Friend is absolutely right: this Government take a completely different approach. We were elected on a manifesto that we will now seek to deliver.
I thank the Minister for his answers to all our questions—he always replies in a positive fashion. As for my question, he probably knows what is coming, but I will ask it anyway. The thorn in the side of any restoration of good faith with the EU lies in the abhorrent Northern Ireland protocol and the EU’s grip on Northern Ireland. That may well exclude Northern Ireland from any trade deals with the United States of America, with which we already have multimillion pound supply deals in place. Will the Minister confirm that allowing Northern Ireland to have her place in the United Kingdom, and an end to the game that is hurting the people of Northern Ireland both financially and constitutionally, are at the top of the agenda for good relations?
I would like to reassure the hon. Gentleman that Northern Ireland is always at the forefront of my mind. Since I came into office, I have visited Belfast twice; I chair the inter-ministerial group, which obviously includes the Minister and Deputy First Minister of Northern Ireland; and the Windsor framework taskforce sits within the Cabinet Office, so I can assure the hon. Gentleman that the interests of the people of Northern Ireland are fundamental to this Government. I would also suggest to him that successful negotiation of a sanitary and phytosanitary agreement would be of significant benefit to the people of Northern Ireland.
I welcome the Paymaster General’s statement today. I notice that he said that there are currently no plans for a youth mobility scheme with the European Union. As a former Erasmus student myself, may I urge him to look at the schemes that are already in place with countries ranging from South Korea to Uruguay, Australia and New Zealand, and the immense cultural, economic and societal benefits that come from those schemes, which do not rub up against the Government’s red lines on single market access, customs union membership or freedom of movement?
My hon. Friend makes a powerful point, and if we look back over recent decades, there have been many people in this House who have had the benefit of studying abroad. As my hon. Friend has also pointed to, though, the red lines upon which this Government were elected are fundamental.
I thank the Paymaster General for that statement.