Infected blood compensation update as DWP and inheritance impact clarified ahead of first payments

The Government has announced more than £13million in compensation spread across 10 people affected by the infected blood scandal, with 25 more victims invited to claim and further compensation rollouts expected to follow. In total, £11.8billion has been set aside for the victims as announced by Rachel Reeves.

While the identities of the 35 people potentially receiving their compensation this festive season, thousands more could be getting hefty lump sums in the new year, but it may not be as celebrated as some think. On behalf of some of the victims and activists the Social Security Advisory Committee voiced some pertinent concerns with the Minister for Social Security and Disability Stephen Timms.

This included issues such as whether the compensation goes to an estate with multiple beneficiaries or that is being contested and how it could impact recipients on means-tested benefits. The Minister's response was published alongside the compensation update, reassuring that benefit recipients should not be impacted.

Timms explained: “The current system for marking those customers who are also beneficiaries of these compensation payments is fit for purpose. Each means-tested benefit for which the capital disregard applies has its own means of noting which customers are beneficiaries of payments from an Infected Blood Compensation scheme.

“These disregards have been effectively applied for years; therefore, we see no evidence that the system is not fit for purpose.” Essentially assuring victims that their means-tested benefits should disregard any compensation they receive entirely.

On the more complicated issue of estates that are being disputed, the MP stated: “This means that whether or not a will is contested is not part of the Department’s assessment process and nor is it our problem to resolve. If a will is contested or there is an issue of bankruptcy these are separate legal issues relating to intestacy laws - no money will be paid out to a beneficiary unless and until that is determined by that separate legal process.”

The process will be similar for estates with multiple beneficiaries and in both cases recipients can contact the DWP to ensure their payments are disregarded for means-tested benefits purposes once they have been made. The minister also defended the decision to doll out compensation to estates instead of individual victims claiming it was considered the “most effective way” to start compensation payments through a lengthy series of Parliamentary debates and approvals, adding: “During these debates, the then Government Minister taking part advised that making direct payments to all beneficiaries would not be deliverable.”