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Vaccine Damage Payments Act 1979 Statutory Sum Order 2007

rose to move, That the Grand Committee do report to the House that it has considered the Vaccine Damage Payments Act 1979 Statutory Sum Order 2007. The noble Lord said: I am satisfied that the order is compatible with the European Convention on Human Rights. This draft order makes a modest but significant change that will affect a very small number of children and their families. Immunisation with vaccines is one of the most important methods for protecting individuals and the community from serious diseases. Where, rarely, the programme results in severe disability to an immunised person, the Vaccine Damage Payments scheme provides a measure of financial help. When the scheme was introduced in 1979, it provided a tax-free lump sum payment of £10,000 in respect of those who were severely disabled as a result of a vaccination against certain specified diseases. It was designed to ease the present and future burdens of those suffering from severe vaccine damage, and of their families. A payment is also available if someone is thought to be severely disabled because their mother was vaccinated against any of the specified diseases while she was pregnant or if someone is thought to be severely disabled because they have been in close personal contact with a person who has been vaccinated against polio. Unlike social security benefits, there is no statutory obligation to increase vaccine damage payments in line with inflation. However, successive Governments have given an undertaking to Parliament to review the rates of the payment regularly in order to maintain their value broadly in line with inflation. The amount has been progressively raised on four occasions over the past 28 years. From the initial amount of £10,000 in 1979, the sum increased to £20,000 in 1985, £30,000 in 1991, £40,000 in 1998 and on the last occasion in 2000 to £100,000. We have therefore decided that it is now time for a further increase. The relevant statutory sum for the purposes of the Vaccine Damage Payments Act 1979 is the statutory sum at the time when a claim for payment is made. The order therefore raises the statutory sum of a vaccine damage payment to £120,000 from 12 July 2007 for all successful claims made on or after 12 July. That means that the buying power of the payment is more than restored to its value in 2000. People who claimed before will receive the statutory sum in force at the time the claim was first made. Out of an average of 177 claims made each year about five claims are successful. Therefore, an increase in the statutory sum from £100,000 to £120,000 would result in associated costs of approximately £100,000 a year. That improvement for the few children and their families who may in future suffer as a result of vaccination shows that this Government remain committed to recognising those who are severely disabled as a result of a vaccination programme for the protection of the whole community. We have consulted the devolved Administrations and the Isle of Man, and they have consented to the making of the order. A consultation exercise was not undertaken for this order as no substantive changes are to be made to the Vaccine Damage Payments Regulations 1979. The order simply increases the statutory sum which is payable under the Act. The purpose and scope of this order will enable the statutory sum of a Vaccine Damage Payment to be increased to £120,000 from 12 July 2007 for all claims received on or after this date. I hope that that receives a warm welcome this afternoon, and I commend the order to the Committee and beg to move. Moved, That the Grand Committee do report to the House that it has considered the Vaccine Damage Payments Act 1979 Statutory Sum Order 2007. 18th Report from the Statutory Instruments Committee.—(Lord McKenzie of Luton.)