Baroness in Waiting/Government Whip (Baroness Anderson of Stoke-on-Trent) (Lab)

My Lords, I am, as ever, very grateful to the noble Baronesses for the thoughtful and productive points raised on this issue. It is very easy for Members of your Lordships’ House to get caught up in the politics of many issues, but on the issue of infected blood this has genuinely been a cross-party and cross-House approach, and I hope we will continue to adopt that theme. At the heart of everything that we are trying to do is to support the victims of one of the most heinous experiences the state has ever undertaken. We need to fix it, not only for them but also, as a Member of your Lordships’ House reminded us last time, to ensure that wider society can have faith that the state can be a force for good. I truly believe that it can. I truly believe that, since I last updated the House in July, significant progress has been made. This demonstrates that we are committed to moving forward swiftly, and with the community at the front and centre of what we are doing. In other contexts, the noble Baroness, Lady Finn, and I have interesting discussions about the concept of test and learn. But truly, if we think about what we are trying to do, it is to compensate many thousands of people with up to £11.8 billion—although that is not a target or a goal, but the amount allocated currently. We are trying to get money out the door as quickly as possible to the people who need it. Test and learn has been an appropriate way to do that, to make sure that taxpayers’ money gets out to the people who need it as quickly as possible and at the appropriate speed. I would like to respond to the points raised by the noble Baronesses. As ever, if I have missed something—and I am pretty sure I will have done—I will write. First, both noble Baronesses raised the issue of inheritance tax, which was obviously a theme of discussions in the other place. It may be helpful to clarify exactly where we are. Anyone in direct receipt of compensation from IBCA or who is a beneficiary of an estate of a deceased infected person does not need to pay inheritance tax. Inheritance tax relief is applied, as the noble Baroness, Lady Brinton, said, to the estate of the person who received the compensation, whether they received it as an infected person or an affected person. Under HMRC regulations, the inheritance tax on that person’s estate is reduced so that the amount of compensation received is effectively free of any inheritance tax when it passes to the estate beneficiaries. However, once the compensation has passed to the beneficiaries, it is treated the same for inheritance tax purposes as any other money or property they own; the relief does not apply again—for example, when the beneficiaries themselves die. Where compensation is paid to a person who has been affected or infected and that person then dies, the inheritance tax which would otherwise be payable in respect of their estate is relieved. It does not matter who the beneficiary of that estate is, the inheritance tax relief applies. However, once the money is received by that beneficiary, inheritance tax applies as normal. To put it as simply as possible, the relief will apply to the estate of the person who is being directly compensated, whether that person is infected, affected, living or, sadly, passed away. Having said that, I appreciate the strength of feeling in your Lordships’ House, and having reflected on Hansard, we are listening. I will seek to arrange the meeting with Treasury officials—I am about to make myself very popular with the Treasury—to discuss this issue. We will see if my noble friend Lord Livermore is still speaking to me by the end of the day. There is also the Budget coming, so we may have to wait a little bit, but I will endeavour to answer noble Lords. On the consultation and timing, the consultation will run for 12 weeks, to 26 January. We will publish a response to the consultation on GOV.UK within 12 weeks of its closing. Regulations to make changes to the scheme as a result of the consultation will be brought forward next year. This is a genuine consultation, not a tick-box exercise. Many recommendations have been made by our technical experts that offer us a range of options within the tariff-based system that we will seek to apply. We should always listen to those people who are affected, but we especially need to make sure that we get this right for the infected blood community. This is truly about making sure that we get the answers needed. Both noble Baronesses raised points about the effectiveness of IBCA. Noble Lords may be aware that on Thursday last week we published a review by Sir Tyrone Urch that we had commissioned in August, reviewing the effectiveness of IBCA to make sure that it was able to take us forward to the next stages as quickly as possible. He has made a series of recommendations, which we published only last week, and now we are looking, with IBCA, to see who is appropriate to take them forward—noble Lords will be aware that they focus on three issues: stability, resources and digital systems—to make sure that we have the opportunity to move forward. A matter of weeks ago, I visited IBCA to make sure that I was confident in its ability to take steps forward. That option is available to all Members of your Lordships’ House, and for those who are interested I highly recommend taking a trip to Newcastle to meet IBCA. It was an extraordinary experience, on which I am sure I will reflect more during these questions. I would like to reassure noble Lords about the ability of the staff at IBCA to move forward. IBCA now employs 329 dedicated claim managers who support people with their claims from start to finish. All claim managers are fully trained and complete a three-week training programme, which includes working with a clinical psychologist to undertake trauma-informed training to ensure that claim managers work compassionately with the community. They are extraordinary people; when I met one of them, he said: “Other than the National Lottery, I get to make someone a millionaire every day by working at IBCA”. By the time he has ensured that the payment is in their bank account, he knows the family well. If any part of this can be joyful, that part is. On delivery, all registered infected have been contacted to claim by October; for the unregistered infected, the first claims begin in November; and affected and infected estates will begin by the end of the year. I appreciate that the noble Baroness is concerned about when we will pay, and for the overwhelming majority the answer is by the end of 2027. I have an answer, although time is short, about the issue of severe psychological harm and the six months of support. I will write to noble Baroness, but I assure her that this is about not counselling but psychiatric treatment. A day as an in-patient qualifies you, not six months, but there is a severity, and currently part of the consultation is about how we will pay that. I will reflect on everything else that has been said. Not only was I overwhelmed by the expertise and professionalism of the people I met when I visited IBCA earlier this year but I want to give special mention to IBCA’s three user consultants, as they are called, who are members of the infected blood community themselves. Jason Evans, Clair Walton and Susan Harris advise IBCA on how its processes and plans can be focused on the needs of those who will be applying for compensation. Given their personal experiences and how easy it would have been for them to walk away, the fact that they are helping us to fix it is extraordinary, and I put on record my huge admiration for them. I will reflect on any points that I have missed and write to the noble Baronesses.