John Glen, the paymaster general, has provided details of a compensation scheme for victims of the infected blood scandal.
It had been widely reported that the cost could surpass £10bn, though the minister didn't put a number on it.
He began by reiterating the prime minister's apology to the 30,000 people affected by the scandal, before detailing the compensation scheme (this post was updated live):
- Mr Glen says the government will establish the Infected Blood Compensation Authority. This will administer the compensation scheme, with Sir Robert Francis as its interim chair;
- The minister reiterates those who have been directly or indirectly infected by NHS blood and blood products, or have developed a chronic infection from blood contaminated with hepatitis B, will be eligible to claim;
- Where an eligible person has died, Mr Glen explains, "compensation will be paid to their estate";
- He adds that affected loved ones will also be able to apply for compensation "in their own right" - such as partners, parents, siblings, children, friends, and family who have acted as carers to those infected;
- The minister explains "anyone already registered with one of the existing infected blood support schemes will automatically be considered eligible for compensation";
- It is proposed that compensation will be awarded in line with five categories: an injury impact award, a social impact award, an autonomy award, a care award and a financial loss award;
- However, the "care award will be directly awarded to the person with the infection, or their estate", and the "financial loss award" will go either directly to the infected person, or their estate if they have died;
- He adds that awards to living infected or affected people "will be offered in a lump sum, or periodical payments";
- The minister confirms that these payments will be exempt from income, capital gains and inheritance tax, and disregarded from means tested benefits assessments;
- The government's expectation is that final payments will start before the end of the year;
- He also confirms further interim payments ahead of the establishment of the full scheme, with payments of £210,000 to be made to "living infected beneficiaries" as well as those who register with a support scheme;
- These will be "delivered in 90 days, starting in the summer", he says.