Government allows asbestos disease victims to keep full compensation

The government has announced it is scrapping a controversial plan to deduct compensation paid out to former employees of a car parts manufacturer who developed asbestos related diseases after being exposed at work.   Ex-workers at Turner & Newell, an American owned company with several factories in Britain, faced having some of their compensation taken off them by the government, as they already received compensation from a fund set up by their former employer.

The issue at the centre of the argument was whether it was right for former workers to receive both the compensation from the government that was paid out to all people affected by exposure to asbestos at work and the payout from the fund set up by Turner & Newell’s US owners.  At present, the government recovers the compensation it pays out under the Pneumoconiosis (Workers Compensation) Act 1979 if workers receive compensation from elsewhere as well. 

However this scheme has been controversial, as in several cases where former employees have only received a fraction of the full compensation from Turner & Newell, the government has still been recovering all of its own compensation, leaving these people much worse off financially.

Scrapping the recovery of government compensation from people who have only been awarded part of their Turner & Newell compensation was announced by James Purnell, Secretary of State for Work and Pensions.  Speaking at the time Mr Purnell said:

“It is important that these workers get all the help they can, which is why I have taken this decision. We have been in discussion with those representing the workers and have decided not to make deductions any more. This will mean that those people receiving only a fraction of their full compensation will not be penalised further.

“We will work up the details of how this will be achieved and implemented so that the changes can be brought into effect as soon as possible.”

To speak to a member of the Camps Solicitors asbestos compensation claims team, call our Freephone number 0800 092 8586 today.