These statutory instruments will increase the value of lump sum awards payable under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 and the diffuse mesothelioma scheme established by the Child Maintenance and Other Payments Act 2008. As many hon. Members will know, these two schemes stand apart from the main social security benefits uprating procedure. While there is no statutory requirement to increase rates, I am happy to maintain the position and increase the amounts payable by the September 2020 consumer price index of 0.5%. This is the same rate that is being applied to industrial injuries, disablement benefits and other disability benefits under the main social security uprating provisions. These new amounts will be paid to those who satisfy all the conditions of entitlement for the first time on or after 1 April 2021.
The Government recognise the great suffering of individuals and their families caused by the serious and often fatal diseases resulting from exposure to asbestos or other listed agents. The individuals affected and their families may be unable to bring a successful claim for civil damages in relation to their disease. This is mainly due to the long latency period of their condition, but they can still claim compensation through these schemes. These schemes also aim, where possible, to ensure that sufferers receive compensation in their lifetime, without first having to await the outcome of civil litigation. While improvements in health and safety procedures have restricted the use of asbestos and provided a safe environment for its handling, the legacy of its use is still with us. That is why we are ensuring that financial compensation from these schemes is available to those affected.
I will briefly summarise the specific purpose of the two compensation schemes. The Pneumoconiosis etc. (Workers’ Compensation) Act 1979, which for simplicity I will refer to as the 1979 Act scheme, provides a lump sum compensation payment to individuals who have one of five dust-related respiratory diseases covered by the scheme who are unable to claim damages from employers and who have not brought any action against another party for damages. The five diseases covered by the 1979 Act scheme are: diffuse mesothelioma; bilateral diffuse pleural thickening; pneumoconiosis; byssinosis; and primary carcinoma of the lung if accompanied by asbestosis or bilateral diffuse pleural thickening.
The 2008 mesothelioma lump sum payment scheme, which I will refer to as the 2008 scheme, was introduced to provide compensation to people who contracted
diffuse mesothelioma but were unable to claim compensation under the 1979 Act because, for example, they were self-employed or their exposure to asbestos was not due to their work. The 2008 scheme allows payments to be made quickly to people with diffuse mesothelioma at their time of greatest need. Under each scheme, a claim can be made by a dependant if the person with the disease has died before being able to make a claim.
The rates payable under the 1979 Act scheme are based on the level of disablement assessment and the age of the sufferer at the time the disease is diagnosed. The highest amounts are made to those diagnosed at an early age and with the highest level of disablement. All payments for diffuse mesothelioma under the 1979 Act scheme are automatically made at the 100% disablement rate, the highest rate of payment, reflecting the serious nature of the disease. Similarly, all payments for this condition under the 2008 scheme are made at the 100% disablement rate and based on age, with the highest payments going to the youngest people with the disease. In the last full year for which data is available, April 2019 to March 2020, 3,220 awards were paid under the 1979 Act, totalling £42.7 million, and 400 people received payments under the 2008 scheme, totalling £9.7 million. Overall, 3,670 awards were made across both schemes in 2019-20 and expenditure was £52.4 million.
I am keen to address the impacts of the covid-19 pandemic on sufferers of pneumoconiosis and mesothelioma. While this uprating debate is an annual event, this has been far from a normal year. We took the difficult decision at the outset of the pandemic to temporarily suspend all face-to-face health and disability assessments, including for the industrial injuries disablement benefit to protect the health of claimants and staff. We have continued, where possible, to process and qualify under SRTI rules—special rules for terminal illness—where a claim can be processed through paper-based review, and have recently explored telephone and video options in line with wider disability benefits to start to clear the backlog.
We are committed to working with our agencies and arms-length bodies to improve the lives of those people with respiratory diseases. People suffering from occupational lung diseases are likely to face a higher risk of complications resulting from covid-19 and it continues to be a distressing time for sufferers of the diseases we discuss today. As of Sunday 14 February, all those identified as clinically extremely vulnerable have been offered a vaccine.
Returning to these important regulations, I am sure we all agree that while no amount of money can ever compensate individuals and families for the suffering and loss caused by diffuse mesothelioma and other dust-related diseases covered by the 1979 Act scheme, those who have them rightly deserve the financial compensation that these schemes can offer. I am required to confirm that the provisions are compatible with the European convention on human rights and I am happy to do so. I commend the increase of the payment scales for those schemes and ask approval to implement them.
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