Draft Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2018 draft Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2018

Barry Sheerman Excerpts

Tuesday 20th February 2018 General Committees

[Sarah Newton]

It is a pleasure to serve under your chairmanship, Ms Ryan. The two draft measures will increase the value of lump sum awards payable under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 and the diffuse mesothelioma payment scheme, which was set up by the Child Maintenance and Other Payments Act 2008. The new amounts will be paid to those who satisfy all the conditions of entitlement on or after 1 April 2018.

The two schemes stand apart from the main social security benefits uprating procedure, and there is no legislative requirement to review the level of payments each year. None the less, I am happy to increase the amounts payable from April 2018 by the consumer prices index rate of 3%. The same rate is being applied to some other social security disability benefits and the industrial injuries disablement benefit.

The Government recognise the suffering of individuals and their families that is caused by the serious and often fatal diseases resulting from exposure to asbestos and other listed agents. Individuals affected may be unable to bring a successful claim for civil damages, mainly because of the long time lag between exposure and onset of the disease, which can often stretch for decades. Therefore, by providing lump sum compensation payments through these two schemes, we fulfil an important role to those who have these dust-related diseases. As well as compensating people who cannot make civil claims, the schemes aim to ensure that people with such diseases receive compensation in their lifetime, while they can still benefit from it, without having to await the outcome of civil litigation.

I will briefly summarise the specific purpose of these lump sum compensation schemes. The Pneumoconiosis etc. (Workers’ Compensation) Act provides—for simplicity, I shall refer to this as the 1979 Act scheme—a lump sum compensation payment to those 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 others 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 widens the criteria for compensation to those who have contracted diffuse mesothelioma but who are unable to claim compensation for that disease under the 1979 Act scheme—for example, the self-employed or people whose exposure to asbestos was not the result of work.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

This is a complicated area, and I have a particular interest in it because a brother of mine died after working for British Petroleum and using asbestos in the days when it was not seen as a danger. He died in great agony, and he had a terrible fight with British Petroleum for any compensation at all. Will the new regulation detract from the capacity for people to sue their employers for a decent sum?

[Sarah Newton]

I am very sorry to hear about the hon. Gentleman’s sad loss. It is disappointing to hear of such a large and profitable organisation putting up such a case to resist providing compensation to an employee who was no doubt valued. The regulations were brought in specifically to address that; we know that the onset of these terrible diseases can come after many years, and often after people have left employment. However, once they are diagnosed people can, tragically, die very quickly, and we do not want them to spend their remaining time trying to pursue civil litigation, with a huge fight on their hands. That is why the lump sum payments are available.

Of course, the scheme and the Department will seek to claim back any payments that can be reclaimed through our own civil litigation; but the scheme was set up specifically to address the concern that the hon. Gentleman raised, so that no one else in that situation would have to go through what his brother went through. Today’s regulations are just about increasing the payment by 3%. We are not changing the scheme in any way. I think that Members on both sides of the House welcomed the measures when we introduced them.

[Mr Sheerman]

When people who suffer from such a disease get involved in the system, they face some of the hardest, sharpest lawyers that can be found. My brother had an apprenticeship at BP and worked there all his life. The lawyers found out that when he was in the Army he smoked, and that was extremely damaging. I have never seen sharper, more unscrupulous people than those employed by reputable companies to make sure that they do not pay their workers their just deserts.

[Sarah Newton]

I thank the hon. Gentleman for that further intervention. It is clearly disappointing to hear of such practice, but I understand from the independent advisory board, the Industrial Injuries Advisory Council, that since the introduction of redress in the form set out in the schemes there have been improvements in corporations’ behaviour, because they understand that the Government see the conditions in question as absolutely terrible. There is far greater understanding of those conditions and their causes than there was in the past, and it is expected that corporations will settle swiftly. I am glad if I have been of some reassurance about that.

I think it is important that under both schemes, a claim can be made by a dependant if the person with the disease has died before being able to make a claim. That can give some comfort to the remaining relatives. Payments under the 1979 Act scheme are based on the age of the person with the disease and their level of disablement at the time they are diagnosed. The highest amounts are paid to those who are diagnosed at an early age and with the highest level of disablement. All payments for diffuse mesothelioma under the 1979 Act scheme are made at the 100% disablement rate—the highest rate of payment—owing to the seriousness of the disease. Similarly, all payments 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—April 2016 to March 2017—3,620 people received payments under both schemes, totalling just over £50 million.

I am aware that the incidence of diffuse mesothelioma is a particular concern of Members, given that the number of deaths from the disease in Great Britain is at historically high levels. The life expectancy of those who are diagnosed with diffuse mesothelioma is poor, with many people dying within 12 months of diagnosis. Diffuse mesothelioma has a strong association with exposure to asbestos, and current evidence suggests that around 85% of all male mesotheliomas are attributable to asbestos exposures that occurred through work.

The number of cases occurring reflects the long latency period of the disease. Our latest available information suggests that there will continue to be about 2,500 diffuse mesothelioma deaths per year for the rest of this decade before annual cases begin to fall, reflecting the reduction in asbestos exposure after its widespread use before 1980.

The draft regulations increase the levels of support through the statutory compensation schemes. I am sure we can all agree that although 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 scheme under the 1979 Act, those who have the diseases rightly deserve some form of monetary compensation.

I am also required to confirm to the House that the provisions are compatible with the European convention on human rights. I am happy to do so.

Before I finish, I put on record my appreciation of the excellent work of the outgoing chair of the Industrial Injuries Advisory Council, Professor Keith Palmer. Professor Palmer’s outstanding work on the council over the past 16 years has included six years as a member and chair of the council’s research working group and, latterly, 10 years as the council’s chair, advising the Secretary of State for Work and Pensions and the Department for Communities in Northern Ireland on the industrial injuries benefit scheme.

During that time, under Professor Palmer’s leadership, the council has written more than 80 reports explaining the often complex scientific evidence underlying its recommendations on work-related diseases. Those reports have included recommendations on work-related musculoskeletal diseases that have gone on to benefit farmers, carpet fitters, floor layers and miners, among others. More recently, prescription has been extended for cancers caused by exposure to ionising radiation. On my own behalf and that of my predecessors, I thank Professor Palmer for his contribution and leadership.