Interim Compensation Payments to Sons/Daughters in Legislation - But "loophole" remains
Last week, new legislation came into force, which creates a capital disregard to allow a son, daughter, step-son or step- daughter to receive an interim infected blood compensation payment from their deceased parent's estate without it affecting their means-tested benefit entitlement.
A government memo entitled: "Capital disregard for Infected Blood Compensation payments" states:
The disregard applies to payments derived from a payment made from an approved blood scheme, or the Scottish Infected Blood Support scheme, which is to meet the recommendation of the Infected Blood Inquiry in its interim report published on 29th July 2022. That report recommended that an interim payment should be made to all those infected from contaminated blood or blood products and all bereaved partners registered on UK infected blood support schemes and those who register before the inception of any future scheme. Where an infected person or their bereaved partner registered with such a scheme but died before the interim payment could be made, it will be paid to their estate."
Though this legislation will help a relatively small number of people, it continues to enforce the interim compensation "loophole" reported by the Daily Mail earlier this year for most excluded families.
It is also of concern that the legislation is limited to sons/daughters and does not apply to other potential estate beneficiaries such as parents or siblings.
Yesterday in the House of Commons, MP's Jessica Morden and Diana Johnson pushed the Paymaster General to provide interim compensation payments to excluded bereaved families.
You can view the new legislation here: https://www.legislation.gov.uk/uksi/2023/894/contents/made
And the memo here:
