Baroness Anderson of Stoke-on-Trent (Lab)

I believe that to be the case. I will confirm to the noble Baroness in writing, given the issues that we are talking about. I would not want to mislead anybody, but I believe that is IBCA’s approach for affected estates as well. Previous payments are all, pre 31 March, ex gratia. Only payments from 31 March count towards compensation calculations, and no payments from an AHO are compensation. But, again, after our conversations and reflecting on Hansard, I will write to the noble Baroness. The noble Baroness raised specific points about the special category mechanism, or SCM. I recognise the level of community concern about how the scheme considers and recognises the impacts captured by the special category mechanism, and I confirm that the matter of how the scheme recognises and compensates people for the impacts that make someone eligible for the SCM is part of the public consultation and further regulations. The consultation proposes that anyone currently receiving special category mechanism or equivalent payments through the infected blood support schemes would now be automatically eligible for a severe health condition award. Everyone who receives SCM payments should have been contacted by IBCA already as part of the cohort of infected people registered with a support scheme. I hope that gives a level of reassurance, but I am aware the noble Baroness asked more specific questions about that, and I will revert. On inheritance tax, the noble Baroness will appreciate that, such was the statement from the Chancellor, no such meeting was required. Private conversations happened about this, reflecting on the issues raised in your Lordships’ House and the other place about how important this was. Representations were made and the Chancellor reflected that in the Budget, and I am very pleased that she did so. So there was no such meeting; I hope noble Lords will appreciate that I had offered one, but it proved to be unnecessary. On the inheritance tax point raised by the noble Baroness, Lady Finn, I think it would be helpful if I outlined what we have agreed to. Inheritance tax policy has been widely raised by many Members of your Lordships’ House and many in the community. It was of huge concern. Compensation payments made under the scheme will be exempt from income, capital gains and inheritance tax. This is in line with tax exemptions for the first and second interim payments. At the Budget, the Government announced that further updates to the inheritance tax disregard will be made to ensure that infected blood compensation payments are relieved from inheritance tax in cases where the original infected or affected person eligible for compensation has, sadly, died before the compensation is paid. I know this was an important issue for many members of the community, and I am pleased that the Government have been able to listen and make this change. The changes mean that inheritance tax credit will be automatically applied to the estate of the first living beneficiary of the infected or affected person’s estate. For example, this would mean that the children of a bereaved partner who inherits their infected partner’s estate and then dies would not face an inheritance tax charge on the compensation they inherit. This will apply to compensation made before or after 26 November 2025. The Government have also made changes to the rules on gifting compensation payments. The change means that the first living recipients of compensation payments will have two years in which to gift some or all of their compensation payment without an inheritance tax charge. This applies to gifts of compensation made on or after 4 December 2025. The noble Baroness, Lady Finn, also said that no one should fall through the cracks, and she is absolutely right. IBCA is working with those affected and infected to build an evidence base where people are struggling. Noble Lords will appreciate that as we move from the infected who are claiming to the affected who have claims, some of the evidence base is going to become more challenging and it is right that the case handlers will work with people to help support their evidence efforts. On the Tyrone Urch review, we are still reflecting on its recommendations and talking to colleagues at IBCA about what support it can provide, because many of the recommendations were for IBCA. I will report back in due course. I can confirm that the changes to these regulations will not slow us down: where enhancements have been made, those will be retrospectively applied to those people who have already received compensation without them having to come forward again, and we do not believe that anything we are proposing at this point will slow anything down. On the clear comms plan, noble Lords are aware that earlier this year I visited IBCA and met its comms team. I think we can all agree that there have been significant communication challenges from IBCA during this process. I personally think, having seen some of the new materials it is using and the fact that it is using a different level of basic English standard now, as opposed to a level of science, that that has made this much more accessible. We are talking about people who have different experiences and different personal circumstances. Comms is always going to be a challenge, but I put on record my thanks to the women—and it is overwhelmingly women who are answering the calls in the first instance—who are providing huge support, and to the handlers who are based at IBCA, who are doing a very good job, having built an organisation from scratch since May last year to deliver over £2 billion of compensation. There is a long way to go, but I believe that they are on track. These regulations will action several of the inquiry’s recommendations and bring them into force as quickly as we are able to, but I am very clear that this is not the end of the process. These regulations are only one part of the Government’s response to the inquiry’s additional report. The consultation that is currently under way does not close until 22 January and I encourage all those impacted by the scandal to respond to ensure that their voice is one of those helping to guide us forward. If there are problems with people being able to access the consultation, please let us know. We are making other mitigations, but if there are specific challenges, I want to hear them.