VCJD Compensation Scheme
Summary of the Scheme
The vCJD Compensation Scheme set up by the Government in 2000 is administered by Trustees under the terms of a Trust Deed dated March 2002. This is a complex document, and the summary set out below does not attempt to cover every aspect of the Scheme, or to provide a legal definition of the provisions of the Trust Deed. It is intended merely to summarise the main provisions of the Scheme, and to help identify those who are eligible to apply.
Who is eligible for compensation?
To apply for compensation under the Scheme, you must be either a Victim, a Qualifier or a Non-Qualifying Carer (NQC).
A Victim is someone whom the CJD Surveillance Unit has confirmed is (or was prior to death) suffering from vCJD.
A Qualifier is someone who is or was:
• the Victim’s spouse or partner
• the Victim’s parent of grandparent
• the Victim’s child or grandchild
• someone whom the Trustees are satisfied was treated by the Victim as their child or parent
• the Victim’s brother, sister, uncle, aunt, or child of such person
• a dependant of the Victim
During the Relevant Period (i.e. the period starting 6 months before the date when the Trustees accept that vCJD was reasonably suspected, or 2 years prior to death if earlier).
A Non-Qualifying Carer is someone who is not a Qualifier, but who was significantly involved in providing unpaid care for the Victim during the Relevant Period.
WHAT CAN BE CLAIMED?
The Victim
The Victim (or their personal representative, trustee etc.) is entitled to a basic sum of £120,000, or £125,000 if vCJD was diagnosed before 26 October 2000. Interim payments may be made.
The Trustees can also reimburse the Victim any lost earnings which have caused them ‘particular hardship’. Note that Victims are not automatically entitled to be paid their lost earnings.
The Victim’s family and carers (Qualifiers and NQCs)
(1) A basic sum of £5,000 (£10,000 if vCJD was diagnosed before 26 October 2000) will be divided between the Qualifiers at the discretion of the Trustees.
Note that a Qualifier is not necessarily entitled to a share of this basic sum, as presumably the Trustees take account of the extent to which the Qualifier was close to the Victim. NQCs are not entitled to share in the basic sum.
(2) An additional sum of £5,000 may be paid by the Trustees to any NQC, and/or any Qualifier who was significantly involved in caring for the Victim, to be divided between them at the Trustees’ discretion.
(3) Where a Qualifier (but not an NQC) has suffered a recognised psychiatric condition lasting more than a month which the Trustees accept was caused or aggravated by the Victim’s state, an additional sum of £5,000 may be paid to that Qualifier.
Note that more than one payment of £5,000 may be made under this clause, if more than one Qualifier has suffered a psychiatric condition.
(4) In addition, where the psychiatric condition causes particular financial or emotional hardship (e.g. where there is a substantial loss of earnings caused by the psychiatric condition, rather than by the care provided for the Victim), the Trustees may pay a further sum at their discretion. [See below]
A ‘psychiatric condition’ may include depressive illness.
Expenses incurred
The following expenses incurred as a direct result of the Victim suffering from vCJD may be claimed:
(1) Funeral expenses.
(2) Expenditure on alterations to property, and/or purchase of personal items, to a maximum of £10,000.
(3) Sums paid for care up to 31 March 2001 (or the date of implementation of a Government Care Package if earlier), and up to £2,500 for other care expenses. [5.3]
(4) Expenses incurred in claiming under the Scheme, such as medical fees. Note that the Trustees have stated that “claimants do not normally need separate legal representation”.
Unpaid care provided by Qualifiers or NQCs
From 31 March 2001 no care costs can be claimed under the Scheme. Where a Government Care Package was in place before that date, no care costs can be claimed from the date when the package was implemented.
The Trustees may pay 75% of the reasonable commercial cost of care provided to the Victim by Qualifiers and/or NQCs up to the cut-off date, together with their travel and accommodation expenses.
The Trustees also have the discretion to reimburse such carers any loss of earnings which has caused them ‘particular hardship’. Note that carers are not automatically entitled to be paid their lost earnings. Credit must given for payments under clause 5.3.2.
Loss suffered by the Victim’s dependants
The dependants of the Victim will usually also be Qualifiers, but this is not a requirement.
(1) Where the Victim’s dependant(s) have suffered ‘particular hardship’ as a result of earnings lost by the Victim, the Trustees may make a discretionary payment to the dependants.
(2) Where the Victim has died leaving one or more dependants, the Trustees must assess the value of the dependency according to the calculation set out in the Second Schedule to the Trust Deed. The provisions are complicated, and payments are limited to an overall maximum.
(3) Where a dependant is unable to obtain life insurance or mortgage protection cover without paying a substantial additional premium because of their relationship with the Victim, the Trustees may make a discretionary payment to the dependant.
Particular Financial Hardship
A claim for ‘particular financial hardship’ [PFH] may be made where hardship of a financial nature has been suffered by the Victim or the Victim’s family or carers, which is attributable to a recognised psychiatric condition caused or aggravated by the Victim’s state.
A recognised psychiatric condition would include depressive illness as well as other conditions or neuroses requiring psychiatric treatment. It is not essential that the claimant underwent treatment for the condition, but an expert report from a psychiatrist will normally be required.
PFH might comprise:
• the need to borrow, or to sell possessions or savings;
• a lower standard of living;
• increased debts or debt default;
• the need to move house or change job.
Claims for PFH are likely to be limited to a maximum of £20,000 (or £40,000 for ‘extreme particular financial hardship’). The extent to which compensation payments have alleviated financial hardship will be taken into account, but not state benefits, life insurance or inheritances from the Victim’s estate. Other payments made to the claimant from the Discretionary Fund will be deducted. [Discretionary Fund claims include those under clauses 5.3, 5.4, 5.5, 6.1 and 7.2 above]
Particular Emotional Hardship
A Victim or a member of the Victim’s family or carers may also claim for ‘particular emotional hardship’ resulting from such a psychiatric condition. Particular emotional hardship might take the form of:
• an inability to function as well as previously in family, social or working situations;
• loss of career or career prospects;
• damage to family relationships, e.g. marital breakdown;
• loss of sexual appetite, or inability to enjoy hobbies or interests.
In assessing whether particular emotional hardship has been sustained, the Trustees will take account of the date when the psychiatric condition started and its duration, the extent to which functioning has been impaired, and the prognosis. If successful, a claimant will receive a single non-graduated payment of £15,000, less any other payments made from the Discretionary Fund.
How do I claim?
The ‘Main Application for Compensation’ form is a mammoth document of 30 pages, including a checklist of 16 additional documents which must accompany the application. In addition, where paid or unpaid care is claimed, a separate 10 page form must be completed.
Assistance may be obtained by telephone from the solicitors for the Trustees. The Trust deed also provides for payment of Victims Families legal fees in the event that independent legal advice is sought. Payment in these circumstances is at the discretion of the Trustees. Guidance notes have been issued by the Trusts Solicitors on legal costs.
SHOULD YOU REQUIRE ANY ASSISTANCE REGARDING THE VCJD COMPENSATION SCHEME PLEASE EMAIL IAN COHEN AT isc@goodmanslaw.co.uk