Interest on Past Losses
I recommend that interest be payable on awards for past financial losses and past provision of care, from the date of infection to the date of the award, in accordance with the practice in personal injury damages claims; alternatively, that such awards are uplifted for inflation during that period.
How was this assessed?
Response
Accepted
Response
AcceptedWith respect to recommendation 11 of the Second Interim Report, the compensation scheme aligns with the spirit of the recommendation regarding interest payable on past financial loss. The Scheme uses the rate of current median +5% annual salary netted for tax and NI, which is then applied to all years for the working period (age of infection to retirement age) and 50% of this rate from retirement age to life expectancy age. As the Scheme uses the current median salary, as opposed to rates from previous years, interest is not payable.
The scheme provides for appropriate compensation for past losses taking account of the passage of time since infection.
Progress Timeline
Published Evidence
Published assessments of implementation progress from inspectorates, select committees, official progress reports, and other sources. Check the source type badge to see whether each assessment is independent or government self-reported.
As of 13 January 2026: 3,721 people asked to start claims, 3,546 begun process, 3,074 received offers totalling £2.47bn, 2,861 paid totalling £1.89bn. Third compensation regulations in force 31 December 2025.
View detailed findings
IBCA exceeded initial expectations. Three sets of regulations now in force covering infected persons, affected persons, and supplementary routes. £11.8bn committed in October 2024 Budget. Independent review found "very creditable progress."
IBCA has contacted 2,215 people to begin compensation claims; 1,934 started process. £812m+ paid via Horizon Shortfall Scheme. £11.8bn committed in Autumn Budget.
View detailed findings
IBCA exceeded expectations for first cohort and established operational service with "compassionate ethos." Target: bulk of infected payments by 2027, affected by 2029. Third compensation scheme regulations came into law 31 December 2025.