13 March 2007 - John Hutton plans faster compensation for more Mesothelioma sufferers

Secretary of State for Work and Pensions John Hutton today set out proposals to provide faster compensation to all people diagnosed with mesothelioma.

Currently only people who contract the disease from exposure to asbestos at work are eligible to claim a lump sum from the state. The proposals would provide up-front financial support (within six weeks) to people who were previously not eligible, including those who were:

• exposed to asbestos from a relative (e.g. from their overalls);
• exposed to asbestos environmentally (e.g. lived near a factory using asbestos);
• self-employed; and
• those who can’t trace their exposure to asbestos.

Speaking at a mesothelioma summit in London, John Hutton said:

“No amount of money will ever make up for the suffering and loss to individuals and families caused by mesothelioma. But no-one should have to worry that they or their family will have to wait years before they see a penny of compensation. Especially as in many of these cases people do not have years to wait.

“That’s why we’re committed to ensuring that everyone with mesothelioma can receive compensation, irrespective of their employment history. This legislation would mean that once diagnosed, every sufferer should receive a substantial payment within six weeks of making a claim.”

Currently only people who receive Industrial Injuries Disablement Benefit are eligible for state compensation under the Pneumoconiosis etc. (Workers' Compensation) Act 1979. The proposals would break this occupational link and would mean that, as soon as legislation passes through Parliament, all those with mesothelioma would be eligible for payment, irrespective of their employment status and provided that they have not already received compensation through personal injury claims or against an employer. These payments could be as early as next year.

The cost of this proposed change would be met by compensation recovery. Currently state payments are not recovered from civil compensation, so employers or insurers found liable often reduce and retain compensation by the amount already paid by the state to the individual.

A compensation recovery process will be introduced so that state payments are recovered if a civil compensation claim is subsequently successful. These funds will be used to make up-front payments to all new mesothelioma claimants. Payments will initially correspond to what can be afforded out of the projected compensation recovery amounts – but the payments will increase as funds allow.

Today’s summit, attended by stakeholders, is part of the consultation to find a long term solution for compensation and will be used to develop the detail of the proposed legislation.

Notes to editors

• In July 2006 the DWP Secretary of State announced a number of measures to speed up payment of compensation to those with mesothelioma. At the time he also announced that long term solutions would be introduced to enable those suffering with the condition to receive compensation, where possible, during their lifetime.
• Progress during the last year includes:
  • HM Revenue and Customs now trace Employer records in 10 days, as opposed to the previous 25-30 days.
  • We have got rid of the rules which prevented the Financial Services Compensation Scheme contributing to claims already paid in full by the company or insurer. Now funds can be paid in the knowledge that, where FSCS is responsible for some of the compensation, the company can recover this payment.
  • The Compensation Act 2006 now provides that negligent employers should be jointly and severally liable in mesothelioma cases, so that the claimant can recover full compensation from any relevant employer. This is to ensure that the verdict in the Barker case – whereby it was judged the sufferer had to sue each individual employer separately – cannot be repeated.
• It is an anomoly that payments under the Pneumoconiosis etc. (Workers' Compensation) Act 1979 are not recovered from subsequent sucessful civil compensation claims. Compensation is currently recovered for most other benefits.  

About mesothelioma

• Mesothelioma is a cancer of the lining of the lungs or abdomen, and is associated almost exclusively with asbestos; it is invariably fatal, and the time between diagnosis and death is on average about 9 months.
• There is a long ‘lag time’ between exposure to asbestos and the development of mesothelioma; this varies from a minimum of about 10 years upwards, the average interval being in the order of 30-40 years.
• It is also the number one identified cause of occupational death. With about 1800 deaths per year at present, expected to rise to about 2500 when the epidemic peaks between 2010 and 2015, it is the commonest work-related death. Between 2006 and 2020 up to 30,000 people will die of the disease in the UK. 
• Cases of mesothelioma in the UK used to occur mainly in people who had worked in ship building and heavy engineering (which used significant amounts of asbestos) and asbestos product manufacturing industries. For this reason, mesothelioma was more common in areas such as Scotland, the North East and Southern England where many of these industries were based.
• An increasing proportion of cases are now being diagnosed in individuals who may have had less intense exposure such as the building industry (carpenters, electricians, demolition workers etc.) and people who have worked in buildings where asbestos construction materials have been used and become disturbed in some way. It is estimated that these now represent the majority of new cases and therefore there is a large number of people who are at risk of the disease who may be unaware of their exposure to asbestos.

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