Infected Blood Compensation Scheme

[Relevant Documents: Oral evidence taken before the Public Accounts Committee on 4 and 1 June, on Government compensation schemes: update, HC 88.]

I call Clive Efford, who will speak for around 15 minutes.

I beg to move,

That this House has considered the Infected Blood Compensation Scheme.

At the outset, I would like to bear witness to those who have fought for justice for so long, and who have given evidence to the inquiry. I would also like to pay tribute to my predecessor as chair of the all-party parliamentary group on haemophilia and contaminated blood, my right hon. Friend the Member for Kingston upon Hull North and Cottingham (Dame Diana Johnson).

I am aware that many Members who would like to be here are in Makerfield for the by-election, so I may ask for your indulgence, Madam Deputy Speaker, as I have a lot to cover, because a lot of people are missing. The Government are about to lay another set of orders before Parliament, and the community and campaigners have demanded that we make representations on their behalf before they are laid, so I am grateful to the Backbench Business Committee for moving us up the list and granting us this debate in such short time.

I congratulate the Paymaster General and Minister for the Cabinet Office for securing the funds to get the compensation process under way. I know that he takes the matter to heart, and it would be understandable if he felt slightly harshly treated, given that he has secured £9.8 billion for the compensation process, but I am sure he understands that because the community of the infected and affected have had to fight so hard for so long, and have lost many friends and relatives along the way in the face of huge opposition, they are not ready to praise anyone—not until everyone has received justice.

I commend the hon. Gentleman for setting the scene so well, and I am sure that everyone in the House is committed to the same objectives. The hon. Gentleman is right to underline the issues. My constituents back home face significant stress over delays, and unfair deductions when compensation is passed on to the estate of the bereaved. Does he agree that we need a timescale for the moneys to be paid out, so that all those who have experienced delays will know the timeframe? Perhaps the Minister, who is always very responsive and helpful, will come to the House regularly to update us on that before the end of this year, and certainly by the conclusion of spring 2027.

I agree with the hon. Gentleman; we do need a timescale. I will cover that later.

There are concerns that elements of the compensation system still require change, and that some of the decision making is arbitrary and not consistent with what had been promised. I will attempt to go through those concerns. Unethical testing is the most disturbing and distressing aspect of this horrible affair. People—most of them children at the time—were used as human lab rats. Former Treloar’s pupils have described themselves as “cheaper than chimps” for experimenting on. The Government have increased the payment for those who attended Treloar’s school from £25,000 to £60,000, which is a welcome step in the right direction, and for those who were experimented on as children elsewhere from £25,000 to £45,000.

But we should stop to consider for a moment what this compensation is for. These children, without their knowledge, were given contaminated products so that the effects could be studied by the state—the state that should have been there to protect them. Imagine being one of the victims and reflecting on what the state has done to you, knowing that your life has been altered and shortened, and that you have lost friends. I spoke to one parent who described looking at her three children and knowing that she would never see them grow up to be adults or get married, and never see her grandchildren. The top price for that is £60,000. The message was, “If you are a pharmaceutical company, come to Britain. We have set the price low enough that you can carry out experiments on anyone, and then pay the fine and still make money.” What these people have lost is priceless, and £60,000 is nowhere near enough. The issue is not just the size of the compensation, but the gravity of what took place and its immorality. That has to be addressed, and these payments go nowhere near doing so. They should be withdrawn to allow a proper dialogue to take place with the infected and affected, so that an appropriate solution can be reached. We must recognise the losses that these people have endured since childhood.

My hon. Friend may be aware of the work that the National Audit Office has done, looking at different compensation schemes. Does he think that there are lessons that this and any future Government need to take on board when proposing a compensation scheme? Some matters are dealt with by compensation, and some through bureaucratic procedures of the civil service; other resolutions come about as a result of a campaign, like the one he led with others, including my right hon. Friend the Member for Kingston upon Hull North and Cottingham (Dame Diana Johnson). Are there lessons from this that should be applied more widely, and has he had conversations with the Government about taking that approach?

I have not had conversations with the Government about an approach like that, but I do agree with my hon. Friend, and I will address that later. The Government need to learn lessons, and to set up a system, so that we do not have to learn all over again all the lessons of paying compensation and implementing inquiries’ recommendations every time this happens.

The hon. Gentleman has set the point out very powerfully. It is distressing for any of us in this House, and particularly for those of us who cannot imagine our children being put through that in such a callous way. In addition to the questions around compensation, one of the most horrendous things is the additional burden being put on parents where they have to prove, with documented evidence, that they lived with their child 40 or 50 years ago when that was done to their baby, to the future of their family. Will the hon. Gentleman touch on how outrageous it is that that is required, and the additional heartache and burden that that puts on those families?

I will touch on that and I will make that very point. There are areas of evidence required that are unreasonable. I thought we had agreed that that sort of evidence would not be asked for.

In his statement on 14 April, the Paymaster General announced, for all those claimants who can demonstrate to the Infected Blood Compensation Authority that they meet the criteria, that all care and financial loss claims can be backdated to 2017, when the special category mechanism was first established. The community of people I have spoken to feels strongly that compensation must cover actual costs, whenever they occurred, and that there should not be an arbitrary cut-off date of 2017.

On the issue of evidence, which the hon. Lady just referred to, the Government did not accept the inquiry’s recommendation for IBCA to be less stringent on overall evidence for the psychological harm award, and instead advised that people apply to the special category mechanism award. There is concern that the evidence threshold will be too high, and the Government should allow IBCA to be more flexible and compassionate in considering claims of psychological harm through the special category mechanism.

The communities consistently pointed out that the current scheme penalises those who died before the compensation scheme came into force. The Paymaster General did not address that issue in his statement earlier this year. The compensation scheme must pay the estates of those who died young for the harm and losses suffered, and end such a clear injustice.

My hon. Friend is making a powerful speech. Does he agree that the Government need to work with colleagues in Scotland, Wales and Northern Ireland to drive forward the final compensation scheme and address the concerns about timelines that he rightly talks about?

Yes, where we can improve the system by working together, I think we should do it. That is absolutely right.

We welcome the introduction of an ongoing dialogue between the infected and affected community and the Government. That was lacking throughout the process, from when the Government started to set the tariffs and set up IBCA, and that led to a lot of mistrust. A two- way dialogue is needed if good relationships and trust are to be maintained and if we are to restore trust in the process.

We must learn the lessons of all inquiries and compensation bodies that the Government have had to set up. We must not keep reinventing the wheel every time an inquiry reports and makes recommendations.

I thank my hon. Friend for all his work as Chair of the APPG and with the contaminated blood community. On the issue he has just raised, there is growing support for a national oversight mechanism to monitor and intervene when recommendations from public inquiries are being ignored or misapplied. Does he agree that it is particularly important in the case of contaminated blood, where there have been so many false starts and delays? Although the Minister has announced a new mechanism to raise concerns about how compensation schemes function, does he agree that such monitoring must be statutory and self-resourced to ensure fair and timely compensation for victims and their families?

I agree. We need to put this on a statutory footing—if nothing else, to give rights to the people who have been wronged in the process.

The hon. Gentleman referred to “reinventing the wheel”. There is no possible way that anybody can be really compensated for the loss of a child, a husband or a wife. However, those of us who still bear the scars of the thalidomide scandal are seeing the wheel reinvented again and again. Surely there has to be a system that allows compensation and allows the Government to act as the insurer of last resort and then to make claims against those who are actually culpable. Does the hon. Gentleman agree?

Yes, I agree. We keep repeating the experience with inquiry after inquiry. The time has come for us to set up a body that retains that experience so that it can represent the people who have been wronged and ensure that the issues that have been raised by them, through whatever inquiry has taken place, can be addressed.

There are some discussions going on about how there should be oversight of Government’s acceptance of recommendations from public inquiries. My hon. Friend the Member for Hammersmith and Chiswick (Andy Slaughter) talked about the statutory option, but there are also discussions about whether Select Committees should have a role in that space. That would bring the matter right to the heart of Parliament, in full view of the public. Sunlight shone on things means they might be followed through. Does my hon. Friend the Member for Eltham and Chislehurst (Clive Efford) have any thoughts on that process?