Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2021

Baroness Stedman-Scott Excerpts

Wednesday 10th February 2021 Grand Committee

Moved by

[Baroness Stedman-Scott]

That the Grand Committee do consider the Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2021.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

My Lords, in moving these regulations, I will also speak to the Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2021. I am required to confirm to the Committee that these provisions are compatible with the European Convention on Human Rights. I am happy to do so. 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, which was established by the Child Maintenance and Other Payments Act 2008.

These two schemes stand apart from the main social security benefits uprating procedure. However, through these statutory instruments, we will increase the amounts payable by the September 2020 consumer price index of 0.5%. This is the same rate that is being applied to the industrial injuries disablement benefit 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 that people suffering from diseases as a result of exposure to asbestos or one of a number of other listed agents 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 while they themselves can still benefit from it, without first having to await the outcome of civil litigation.

Although improvements in health and safety procedures have restricted the use of asbestos and provided a safer environment for its handling, the legacy of its widespread 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—for simplicity, I will refer to this 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 because they have gone out of business 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 payments 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 the disablement assessment and age of the sufferer when the disease is diagnosed. The highest amounts are paid 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 450 people received payments under the 2008 Act, totalling £9.7m 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 a far from 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 to process industrial injuries disablement claims for those individuals with terminal illnesses. Therefore, throughout the Covid-19 pandemic and the suspension of face-to-face interviews, service centres have continued to pay the D3, mesothelioma, D8, lung cancer with asbestosis, and D8a, lung cancer in the absence of asbestosis cases, for workers’ compensation.

In addition, since November 2020, we have been assessing claims for D1, pneumoconiosis, including silicosis and asbestosis, and D9, unilateral or bilateral diffuse pleural thickening, prescribed diseases, so that claimants can start to receive the payments they deserve. While we expect the number of people diagnosed with mesothelioma to begin to fall in the coming years, the Government are well aware that there will still be many people who develop this and other respiratory diseases. That is why we are committed to working with our agencies and arm’s-length bodies to improve the lives of those with respiratory diseases.

The Covid-19 pandemic has presented major challenges for all healthcare systems. The NHS has published a cancer service recovery plan, which has been developed with the Cancer Recovery Taskforce. The plan aims to prioritise long-term plan commitments, which identified respiratory disease as a clinical priority and will support recovery, including the delivery of targeted lung health checks. We know that research is crucial in the fight against cancers such as mesothelioma. That is why the Department of Health and Social Care invests £1 billion per year in health research through the National Institute for Health Research.

I am aware that people suffering from occupational lung diseases are likely to be at higher risk of complications resulting from Covid-19, at what continues to be a distressing time for sufferers of the diseases that we are discussing today. The Department of Health and Social Care is following advice from independent experts on the Joint Committee on Vaccination and Immunisation on which groups of people to prioritise for Covid-19 vaccines. They advise that the immediate priority should be to prevent deaths and protect health and care staff, with old age deemed the single biggest factor in determining mortality. The JCVI has decided that it is safe for people with long-term conditions and that people who are high-risk should be prioritised to get the vaccine first.

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 the 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 commend the increase of the payment scales for these schemes and ask approval to implement them. I beg to move.

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[Baroness Stedman-Scott (Con)]

My Lords, I thank everybody for their helpful contributions to this debate. The Government recognise that these two schemes form an important part of the support available to people with dust-related diseases such as pneumoconiosis, byssinosis, diffuse mesothelioma, bilateral diffuse pleural thickening and primary carcinoma of the lung. I hope to address all the points raised but, as always, if I run out of time, I will certainly write to noble Lords.

First, to pick up on the point the noble Baroness, Lady Sherlock, just raised about a letter, this came up in the office this week. My officials looked into it, and it seems that we did not write the letter as promised. That is being rectified at the moment, and I can assure the noble Baroness that it will be placed in the Library, as all other letters will be.

I thank the noble Lord, Lord Blunkett, for his contribution, and for paying tribute to the campaigners and eloquently telling us about the impact of these terrible diseases. Unless we have actually seen them, they are very difficult to appreciate. I add my thanks to all the health professionals for their support to people who require their help on this matter.

Moving to the noble Lord, Lord McNally, there is nothing I can say in relation to his dear sister. It is not a job done; we are on the case and we will keep it on the agenda. I say to all noble Lords that, on this matter and any other, my door is open to speak to them.

The noble Baroness, Lady Sherlock, raised the point that dependants are mostly women, and asked whether I have considered the equality issues by not equalising payments and about an impact assessment. The intention of this scheme was to compensate those who contracted diseases as a result of their working environment. Historically, those who worked in hazardous environments tended to be men, and this reflects the current gender balance of claims. Nevertheless, the 2008 Act compensates people regardless of whether they contracted their disease through work, and this recognises the indiscriminate nature of mesothelioma. We have not conducted an impact assessment on the uprating of the lump sum schemes, but the noble Baroness raised a very valid point which I will certainly take back to the department.

The noble Baroness, Lady Sherlock, asked why the uprating of the lump sum schemes has not been placed on a statutory footing. Each year, since 2004, Ministers have agreed that payments under the lump sum scheme can be uprated in line with inflation. Making this legally binding is extremely unlikely to make any actual monetary difference to those who benefit from these payments.

The noble Baroness, Lady Janke, and other noble Lords raised the point about government support and mesothelioma. This is absolutely critical in the fight against cancer, which is why the Department of Health and Social Care invests £1 billion a year in health research through the National Institute of Health Research. For several years, we have been working actively to stimulate an increase in the level of mesothelioma research activity from a low base. This includes a formal research priority setting exercise, a National Cancer Research Institute workshop and a specific call for research proposals through the National Institute of Health Research.

My noble friend Lady Gardner of Parkes asked whether we could offer more support. I will take this away and write to the noble Baroness to see if there is anything we can do.

The noble Lord, Lord Wigley, raised the point of payments made in the past 12 months and how many of those arose from the slate quarrying industry. My responses may be disappointing, but the information is not published or readily available, and it would require analysis of multiple datasets for the 1979 scheme. In the quarter ending March 2020, there were a total of 210 industrial injury prescribed disease first assessments in the mining and quarrying industry, which were accepted and payable. The noble Lord asked how many applications had been turned down and what the main factor was in these cases. Again, the information is not published or readily available, and it would require some intensive analysis of multiple datasets. Information on industrial industry first diagnosed prescribed diseases all assessments by standard industry classification is published in the industrial industries disablement benefit quarterly statistics. If the noble Lord needs any help in accessing those, I ask him to please let me know.

The noble Lord, Lord Wigley, also asked, in relation to mesothelioma, whether I can give some clarification on whether the rapid access clinics, which are so important to secure the vital early identification of the disease and thereby facilitate payment, have been negatively impacted by Covid-19. It is imperative that people get tested and that cancer patients continue to receive the treatment they need. Overall, cancer treatment services have been maintained throughout the pandemic. Between March and November last year, 203,000 people started treatment for cancer, and 95% of them did so within 31 days of a decision to treat.

In terms of the levy mentioned, it was £33.3 million for 2019-20 and £28.9 million for 2020-21. The noble Lord, Lord McKenzie, raised the point of equalising dependence payments for those made to people who have the disease. Again, the main intention of the scheme is to provide financial support to people living with certain diseases and to help them to deal with the issues the illness brings. It is right that funding is targeted where it is needed most, and around 90% of payments made under both schemes are paid to those who actually have the disease covered by these schemes. The noble Lord, Lord McKenzie, asked why we do not use money from recoveries towards the equalisation of dependence payments. The combined cost of the 1979 Act and 2008 Act scheme payments outweigh the money received from compensation recovery, so there is, of course, an overall cost to the Government.

The noble Lord, Lord Bradshaw, raised a number of points. The first was what the latest projections are of when diffuse mesothelioma deaths in Britain will peak. There is always a degree of uncertainty in predicting future disease incidence, but the annually published data from the Health and Safety Executive show that annual mesothelioma deaths have been broadly similar over the last seven years. Before that, annual deaths had been rising.

In response to the noble Baroness, Lady Whitaker, seafarers count as being in the UK. I will write to her with further information on that point.

On the point made by the noble Lord, Lord Desai, about how this compensation compares to legal decisions, I will certainly take him up on his offer. I will be in contact to do that.

The noble Baroness, Lady Whitaker, asked whether we will publish a breakdown of people with mesothelioma by age and occupation. Data on the incidence of mesothelioma was published on the Health and Safety Executive website. It can be found on the health and safety at work statistics page under the subheading of ill health. The breakdown is available by age, occupation and geographical location. Again, if the noble Baroness has any difficulty in accessing this, I hope that she will let me know.

The noble Lord, Lord Desai, made a point about anybody being worse off as a result of making a civil claim. The amounts paid under the 1979 Act were originally set at a lower rate than the usual amounts paid in damages in civil cases. It is therefore unlikely that the amount paid under the 1979 Act scheme or the 2008 Act scheme would be more than the damages received through a civil claim.

The noble Baroness, Lady Janke, and others mentioned research; I have dealt with that.

On the point made by the noble Baroness, Lady Sherlock, about the Health and Safety Executive having sufficient resources, I will go back to the Employment Minister, who has direct responsibility for this, and double-check before I answer. I will write to her.

I thank noble Lords for the way in which they have entered into this debate. This is a terrible disease with terrible consequences. Like the noble Baroness, Lady Sherlock, I hope that we will never debate this, as we do on an annual basis, without being moved by the impact of these diseases.

I commend the uprating of the payment scales for these schemes and ask approval to implement the regulations.

Motion agreed.