Victims of the infected blood scandal, who are set to receive substantial compensation payouts decades after the first deaths occurred, have been informed about how these payments could affect their benefits and inheritance.
Labour has announced more than £13million in compensation for 10 individuals affected by the scandal, following promises made in the Budget.
An additional 25 victims have been invited to claim, with more compensation rollouts expected to follow. A total of £11.8billion has been earmarked for the victims, as announced by Rachel Reeves.
While the identities of the 35 people potentially receiving their compensation this festive season remain undisclosed, thousands more could be getting sizeable lump sums in the new year. However, it may not be as celebrated as some think.
The Social Security Advisory Committee, representing some of the victims and activists, raised concerns with the Minister for Social Security and Disability, Stephen Timms. These included issues such as the impact on recipients of means-tested benefits if the compensation goes to an estate with multiple beneficiaries or that is being contested.
The Minister’s response was published alongside the compensation update, reassuring that benefit recipients should not be impacted.
Timms clarified the situation, stating: “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. “
He added: “These disregards have been effectively applied for years; therefore, we see no evidence that the system is not fit for purpose.”
He reassured victims that their means-tested benefits should completely ignore any compensation they receive.
On the complex issue of disputed estates, the MP said: “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.”
Beneficiaries of estates with more than one heir can expect a similar process and are encouraged to reach out to the DWP to make sure that their payouts are excluded when assessing eligibility for means-tested benefits.
The minister backed the choice to provide compensation to estates rather than to each victim separately stating it was viewed as the “most effective way” to begin the compensation payments after extensive debates and approvals in Parliament, explaining, “During these debates, the then Government Minister taking part advised that making direct payments to all beneficiaries would not be deliverable.”
