Coronavirus Act 2020

Compensation where directions given

8 (1) The appropriate national authority must publish a scheme for the making of payments to persons to whom directions are given under paragraph 5.

(2) The scheme must include provision for a person to whom a direction is given under paragraph 5 to be paid—

(a) a reasonable sum in respect of anything provided by the person in accordance with the direction, and

(b) compensation in respect of—

(i) any losses,

(ii) any liabilities to pay damages for breach of contract, or

(iii) any other liabilities,

incurred by the person as a result of the direction.

(3) The scheme may include provision for payments in respect of other matters.

(4) The scheme may include provision designed to prevent double recovery (for example, by reducing a payment in respect of a liability for which a person is entitled to be indemnified under an insurance policy).

(5) A payment under the scheme—

(a) in relation to a direction given by a local authority under paragraph 5(1), is to be paid by that local authority;

(b) in relation to a direction given by the appropriate national authority in reliance on paragraph 6, is to be paid by the local authority that it considered to be failing to exercise functions properly;

(c) in relation to a direction under paragraph 5(2), is to be paid by the appropriate national authority.

(6) The scheme may include provision about procedural matters, including provision—

(a) imposing time limits for the making of a claim or other steps under the scheme;

(b) about the calculation of amounts and how they are to be determined;

(c) permitting or requiring the review of decisions under the scheme.

(7) The scheme may confer discretions or other functions on public authorities.

(8) The appropriate national authority may vary a scheme under this paragraph.

(9) The appropriate national authority need not make a scheme under this paragraph unless or until it has designated a local authority under paragraph 4.