B

Baroness Finn (Con)

Speaking in the House of Lords on 4 November 2025

Debate

Infected Blood Compensation Scheme

Contribution

My Lords, the report of the Infected Blood Inquiry described this tragedy as “the worst treatment disaster in the history of the NHS”. Noble Lords across the House and Members in the other place have spoken time and again of the unimaginable suffering endured by those affected. There can be no doubt that this scandal represents a profound and repeated failure by the state, medical professionals and national institutions. We should never lose sight of the fact that what we call the scandal was, in truth, the infliction, collectively, of grievous harm upon thousands of people by the state. It is now our solemn duty to ensure that such mistakes are never repeated, and that justice is delivered swiftly, fairly and fully to all who were affected. In that spirit, I thank the Minister for her continued time and engagement across the House. I pay tribute to the work of Sir Brian Langstaff, the chair of the Infected Blood Inquiry. Earlier this year, that inquiry warned that there has been “a repetition of the mistakes of the past”, and that people have been “harmed yet further” since the establishment of the compensation scheme. Sir Brian concluded that the number of people compensated to date is “profoundly unsatisfactory” and has called for faster and fairer delivery of redress. The campaign group Tainted Blood estimates that at least 100 people have died while waiting for compensation since the inquiry’s final report last year, and Sir Brian has warned: “Delay creates an injustice all of its own”. We welcome the measures announced to implement some of Sir Brian’s recommendations, such as the HIV eligibility start dates and bereaved partner support scheme payments. The Minister confirmed that, as of 21 October, 2,476 people have received an offer of compensation and over £1.35 billion has been paid. However, as the BBC has reported, as many as 140,000 bereaved parents, children and siblings of victims may also be able to claim compensation, and the Government have set aside £11.8 billion to pay compensation to victims. There is evidently still a great deal of work to be done to ensure that the Infected Blood Compensation Authority—IBCA—can scale up quickly and make payments to affected people, who will clearly be far larger in number for IBCA to deal with. In recent weeks, further concerns have emerged that delays in paying compensation risk undermining one of the core principles of the scheme: how it is, or rather is not, taxed. Under the present arrangements, compensation received by a victim can be passed to their children free from inheritance tax. But for the thousands who have died before receiving payment, those sums will now pass through their estates to bereaved relatives, many of whom are themselves elderly. If they, too, die before receiving the funds, their families could face handing back almost 40% of that compensation to the state in inheritance tax. A statement from the Association of Lifetime Lawyers says “it is an outrage that a technical flaw will allow the Government to claw back up to 40 per cent of the compensation that was specifically intended to provide some redress”. The Government have said that they are committed to making the system as fair and compassionate as possible and will continue to engage with victims and their families. I therefore urge the Minister to assure the House that the Government are aware of this problem and that they are looking into possible solutions. As was noted in the other place, £140 million has now been spent on this inquiry after six years, and that figure will be greater once the accounts for this year have been released. The Minister in the other place said that he thinks we are now in an “exponential phase” where the scale of payments being made through IBCA is increasing. However, the concern is that we are stuck in this test-and-learn phase of delivery. The mechanism for scaling up payments has been too slow and the reliance on repeated rounds of inquiries and tranches of recommendations has prevented swift action and compensation being delivered. It is right that we proceed with care and consideration, but we must not lose sight of the pressing need to deliver this process swiftly. The Government must strike a balance between acting responsibly and acting quickly. My right honourable friend John Glen made the point that we now need to “focus on the delivery of IBCA, rather than have more iterations of recommendations”.—[Official Report, Commons, 30/10/25; col. 520.] He is absolutely right. I therefore ask the Minister to ensure that the scaling-up process proceeds with the urgency that this situation so clearly demands. Before I conclude my remarks, I have some further questions for the Minister. First, can the Minister confirm the Government’s current timetable for making full compensation payments to victims and families yet to receive them and whether that timetable remains consistent with Sir Brian Langstaff’s call for faster and fairer redress? Secondly, what steps are IBCA and the Government taking to identify those individuals who are potentially recipients of compensation under the scheme and who may also be sick or elderly and are, as such, deserving of prioritisation in the processing of their claims? Thirdly, will the Government commit to taking, as a matter of urgency, immediate steps to ensure that all infected blood compensation payments, whether made directly to victims or through estates, are entirely exempt from inheritance tax, regardless of the circumstances or timing of payment? In that vein, can the Minister confirm whether the Treasury has undertaken any assessment of the number of families likely to be affected by this tax anomaly and of the potential sums at stake if it is not corrected? Fourthly, what action is the Minister taking with IBCA to ensure that the pace of payments, which has seen some welcome progress, continues to accelerate and is not jeopardised by changes to rules and processes? Can she confirm that IBCA has the right capability to scale up and that the staff are receiving the right training to deliver? Fifthly and finally, can the Minister confirm when the recommendations from the proposed changes to the infected blood compensation scheme consultation will be implemented? I am aware that the consultation period ends in January, so when can we expect the practical implementation of these recommendations to be forthcoming? The victims and their families have already been failed profoundly by the state. It is now our duty and our responsibility to make sure that there is no further injustice. Addressing the questions we have raised around delays, taxation, and the scalability of the system is imperative. I hope that the Minister can assure us that the Government are taking immediate steps to resolve these issues.

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