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Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2008

rose to move, That the Grand Committee do report to the House that it has considered the Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2008. The noble Lord said: I am happy to confirm to the Committee that these provisions are compatible with the European Convention on Human Rights. The purpose of the regulations, which are being made under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979, is to increase by 3.9 per cent the amount of compensation paid under the Act. The increased amount will apply to those who first satisfy the conditions of entitlement on or after 1 April 2008. Increasing the amounts paid under this scheme fulfils the undertaking given by this Government to increase these payments annually. There is no legislative requirement for the amounts paid under this scheme to be increased annually but we believe that it is right that they are so increased. This was a decision we were pleased to make when responsibility for the scheme was transferred to the Department for Work and Pensions in 2003. It may be helpful if I briefly set out the purpose of the Act. An employee can sue his employer when he suffers from a disease that he contracted from his work with that employer. However, the diseases covered by this Act are known as long latency diseases, as they take a long time to develop. This can mean that they may not be diagnosed for a very long time after exposure to the dust. In most cases, this is more than 20 years, although it can take much longer. It is not surprising that by the time of diagnosis the employer, or employers, responsible may no longer exist. Sufferers and their dependants can therefore have great difficulty in obtaining compensation. The Act provides for lump-sum payments to be made to sufferers based on the age of the sufferer and the level of disability. Higher amounts are paid to people with higher levels of disability and where the disability arises at an early age. Currently, the average payment to sufferers is around £18,000. A claim can also be made by the sufferer’s dependants after his death, but in this case a lesser amount is paid. The average payment to dependants is currently around £6,000. Three conditions must be satisfied before any payment can be made. First, the sufferer must be entitled to industrial injuries disablement benefit. Secondly, there must be no relevant employer who can be sued. Finally, no court action can have been brought, nor any compensation received, in respect of any of the diseases for which a person is claiming under the Act. The Act covers five respiratory diseases, most of which are directly related to asbestos exposure. These are: mesothelioma; pneumoconiosis, which includes asbestosis; diffuse pleural thickening; primary carcinoma of the lung; and byssinosis. It is worth emphasising that these lump-sum payments are in addition to a weekly payment of industrial injuries disablement benefit. Almost 80 per cent of claims paid under this scheme are to those suffering from mesothelioma. This is an extremely severe form of cancer and is invariably terminal within a short time. Last year, this Government reaffirmed their commitment to look into all aspects of the current industrial injuries disablement benefit schemes. As a result, a consultation document was published on 29 January 2007 giving people the opportunity to help to shape future provision for those who are injured or made ill by their work. The consultation ended on 22 April 2007 and a report summarising the responses to it was published on the DWP website in June. The consultation process did not commit the DWP to any particular line of action. We are carefully considering several options put to us by officials. Members will probably also be aware that a separate consultation exercise took place concerning the level of support for people suffering from mesothelioma. Current provision under the 1979 Act is limited to those who were exposed at work. Many people have been exposed to asbestos outside the workplace or through a relative who worked with asbestos. To address that, we are introducing a new lump-sum payment scheme in the Child Maintenance and Other Payments Bill. This removes the condition that a person must be entitled to industrial injuries disablement benefit in order to be entitled to a lump sum.