Victims of the British blood scandal will receive their benefits at the end of this year

A new agency set up to adequately compensate victims and families of the tainted blood scandal is expected to begin payments by the end of this year.

The Infected Blood Compensation Authority (IBCA) was established after an inquiry into the worst treatment disaster in NHS history in May found that governments, the health service and doctors had repeatedly failed victims. Regulations introducing the compensation scheme were set out on Friday.

Jason Evans, founder of the Factor 8 campaign group, whose father Jonathan died in October 1993 after contracting HIV and hepatitis C from contaminated blood, described the plan as a “huge step forward”.

Evans said: “No compensation will ever replace those who have died, but this scheme seems fair overall.” He said the campaigners’ main aims were to secure a public inquiry and a fair compensation scheme. He added: “There can never be a resolution to a scandal like this, but I think we have achieved what we set out to achieve.”

About 3,000 people died and 30,000 were infected with HIV, hepatitis or both after receiving contaminated blood transfusions and products in the 1970s and 1980s. Many of the deaths were caused by commercial blood products given to hemophiliacs to replace a clotting protein called factor VIII.

Although schemes have previously been set up to provide support, many of those affected have received limited compensation or none at all. It is estimated that the new scheme could cost the government as much as £10 billion, but detailed calculations of the total cost are not yet available.

The government said on Friday that thousands of people had died in the scandal, and that those infected “are sadly still dying every week”. A spokesman said: “Lives have been ruined and justice has been denied for decades.”

Payments under the scheme are directly in line with the recommendations of the Infected Blood Inquiry, chaired by Sir Brian Langstaff. It will be open to both infected people and those affected, mainly family members.

Under the scheme, awards are made for harm, social impact, suffering caused by infection, care costs and financial loss. Illustrative total awards in all categories published by the previous government for a living, infected person ranged from £35,500 for a hepatitis infection to £2,735,000 for someone with HIV and hepatitis.

A Cabinet policy document on the scheme states: “The Government hopes that the scheme will enable victims of contaminated blood to receive appropriate compensation without having to seek redress through legal proceedings.”

Nick Thomas-Symonds, Paymaster General and Minister for the Cabinet Office, said in a statement on X that he was “incredibly proud that the first piece of legislation I have signed into law is the creation of the Infected Blood Compensation Scheme”.

He added: “I pay tribute once again to those who have fought for justice for far too long. The time for action is long overdue.”

The Hepatitis C Trust has raised concerns about the disparity in proposed compensation for patients with different diseases. A lawyer for the trust, Susan Lee, said: “We welcome this legislation which finally establishes the Infected Blood Compensation Authority (scheme).

“People have been waiting far too long for this. We are still investigating the information released today and awaiting further details, but we remain concerned about the differences in proposed compensation for people who have contracted hepatitis C, hepatitis B and HIV.

“It is vital that governments do not underestimate the catastrophic and far-reaching consequences that hepatitis can have on people’s lives.”

How much a patient receives depends on the illness or illnesses he or she has contracted and his or her circumstances.