Mesothelioma Act 2014 (Scheme Payments)

Thursday 6th March 2014 Written Statements

[The Minister of State, Department for Work and Pensions (Mike Penning)]

I am today announcing that the payments made under the Mesothelioma Act 2014 scheme will be increased ahead of the first payments being made later this year. Eligible individuals can now expect to receive an average payment of £123,000, less benefit recovery, an average of £8,000 more per person. As always, each successful applicant will also receive a further £7,000 on top of this as a contribution towards legal fees.

I am happy to announce that this is possible because of savings made on the administration costs of the scheme. Over the course of the debates on the Mesothelioma Bill, much attention was given to the commercial process to select the scheme administrator, and who that scheme administrator would be. I can now announce that the open tender process has been concluded, and the contract has been awarded to Gallagher Basset International.

As the Bill progressed through Parliament, my noble friend Lord Freud, Minister for Welfare Reform, and I were sympathetic with those Members who called for an increase in payments from 75% to 80% of average civil damages, but were bound by the need to keep the levy below the 3% of GWP threshold. The savings made through running a competitive open tender process have enabled us to raise the payment rate, while keeping below this threshold.

I hope that Members of both Houses will welcome this increase and will continue to give the scheme their support.