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This item was published during the term of a previous administration that ended in April 2007

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Hep C ex-gratia payment scheme

23/01/2004

The ex-gratia payment scheme for people infected with Hepatitis C from NHS blood or blood products will now be administered through a UK wide scheme, it was announced today.

The UK scheme, to be administer by a new independent body known as the Skipton Fund, will operate on the same basis as the Scottish scheme announced earlier this year.

It will award lump sum payments of £20,000 to all those who now have Hepatitis C from blood or blood products, with a further £25,000 being awarded when people reach a more advanced stage of illness.

Health Minister Malcolm Chisholm said:

"I am pleased to have at last brought this matter to fruition. I believe that these are fair and reasonable payments and hope that they will help alleviate some of the problems those who have been affected in this way are experiencing. I also welcome the news that people who receive awards from the scheme won't have the worry of losing their social security benefits as a result.

"In the course of negotiations we have been able to define a further level of detail on eligibility and scheme administration which will be advantageous to claimants. In particular, bureaucracy will be minimised for people making a claim in recognition that it will be difficult for some people to gather evidence from 20 years ago.

"The scope of the scheme has also been extended to include people who have cleared the virus as a result of treatment and to those infected as a result of the virus being transmitted from someone who was infected from blood or blood products. The scheme will also consider people who were infected with HIV as well as Hepatitis C in the same way as those only infected with the Hep C virus.

"We are now pressing forward with the essential work that remains to be done in finalising the application process for awards and setting up the independent body that will administer the scheme. Organisations such as the Haemophilia Society and Hepatitis C Trust will be fully involved in that work to help ensure the procedures are as user friendly as possible.

"Once this work is completed, we will announce the final details of the schme and will work closely with the health service, clinicians and voluntary groups to ensure claimants know what to do in order to make an application."

Scotland was the first UK administration to offer payments when the Health Minister informed the Health and Community Care Committee on January 29, 2003, that he was prepared to establish an ex-gratia scheme following publication of the preliminary report of the Expert Group on Financial and Other Support in November 2002 -commissioned by the Executive.

The report recommended that the Executive should make ex gratia payments to all people who could demonstrate, on the balance of probabilities, that they received blood, blood products or tissue from the NHS in Scotland before the dates when they were made Hepatitis C - safe and who were subsequently found to be infected with the virus.

As outlined by the Health Minister in January 2003, the scheme would make lump sum payments of £20,000 to all of those who now have Hepatitis C from blood, with a further £25,000 when people reach a more advanced stage of illness. At the time he made it clear that the scheme could not go ahead until it was confirmed that the Executive had the necessary powers under the Scotland Act. It was also essential to ensure that the making of awards did not result in social security benefits being withdrawn.

On August 29, 2003, the Health Minister revealed that the Westminster government had agreed that the establishment of a scheme in Scotland was within the powers of the Scottish Parliament.

On the same day John Reid, Secretary of State for Health in the Westminster government, announced that, on compassionate grounds, he had decided to establish a financial assistance scheme in England.

Since then discussions have been taking place between officials of the four UK administrations to explore the benefits and feasibility of administering the proposed national schemes through a single UK scheme and to make the necessary arrangements to resolve the benefit issue. Today's announcement confirms the outcome of those discussions.

The scheme will be uniform across the UK and will not differentiate between people depending on the source of their infection.

The Macfarlane Trust, which has experience and expertise in administering similar ex gratia HIV schemes has agreed to input into the management of the Skipton Fund.

The 'advanced stage' of illness that triggers eligibility for the £25,000 has now been defined as when a patient develops cirrhosis, liver cancer or if they have received a liver transplant. A team of medical experts is currently developing a protocol that will enable the existence of cirrhosis to be assessed using only existing biopsy data or the results of non-invasive tests.

Legislation affecting social security benefits, residential care charging and housing improvement and repair grants will be amended at the first opportunity to ensure that people receiving payments from the scheme are not penalised as a result.

General eligibility for payments is defined in terms of having received blood, blood products or tissue from the NHS in Scotland before September 1991. No payments will be made in respect of those who have died before August 29, 2003, when the Health Minister announced that it had been confirmed the Scottish Executive had the legal powers to operate the scheme or to people who have cleared the virus spontaneously.

In the case of eligible people who die between August 29 and the time when the scheme is in a position to make payments, then the payments will be made to their dependents.

People who have been infected with HIV through blood, blood products or tissue on in the past, and have in addition contracted Hepatitis C in the same way, will be eligible for payments from the scheme in the same way as those who have only been infected with Hepatitis C.

It will be assumed that people who have developed Hepatitis C after being treated with Factor VIII or Factor IX blood clotting factor concentrates were infected as a result of that treatment. Virtually all haemophiliacs will fall into this category.

Where people have received compensation from other sources in connection with their infection, this will be deducted from any award they are entitled to under the scheme. The scheme will not reimburse legal costs incurred in obtaining that compensation, in unsuccessfully attempting to obtain compensation or in preparing a claim for payment from the scheme itself.

A further announcement will be made once the position is reached where claims can be processed through the scheme. This will make clear exactly what claimants need to do in order to make an application.

People in Scotland who have not already registered an interest with the Executive, and who would like to have information on making a claim when this becomes available, should not contact the Macfarlane Trust but should leave their contact details with the Executive on 0131 244 2433.

Page updated: Saturday, July 17, 2004