LONDON, February 13 /PRNewswire/ -- The Government today (Friday) took a decision which benefits hundreds of sufferers of the fatal asbestos cancer, mesothelioma. The people affected were exposed to asbestos by Turner Newall (TN) the UK's largest asbestos company which went into Administration in 2001.

It was also understood that TN claimants were entitled to the state payment under the Pneumoconiosis 1979 Act. It was further understood that the sum of both payments fell well short of the total amount claimants should have received.

Unite the UK's biggest union acted swiftly with the help of Terry Rooney MP, who has worked extremely hard throughout the process. The uniqueness of the TN asbestos victims' position meant special measures were needed to ensure that they were not unfairly penalised under the new legislation. The decision today reinstates the exemption for TN claims from the Government's Compensation Recovery Unit.

Derek Simpson Joint General Secretary of Unite said: We are delighted that the Government has put this right. Had it not been for Unite's prompt intervention this problem would have remained unchecked to the disadvantage of many mesothelioma sufferers and their families. This decision will benefit our members and countless other TN asbestos victims who have suffered serious pain and loss of life, and it will aid their families who have to care for them.

The union stepped in because it was wrong that workers condemned to an agonising death and their grieving loved ones were facing their compensation being so drastically cut. It was an important point of principle which Unite was committed to getting resolved.

The new legislation was intended to benefit people with mesothelioma but it also resulted in compensation payments to victims from the TN Trust being drastically reduced or extinguished altogether. The determined action taken by Unite the union was instrumental in raising this issue at the highest possible level and achieving a fair and just political solution.

Notes:

The former Secretary of State John Hutton exempted TN claims from compensation recovery provisions of the Social Security (Recovery of Benefits) Act 1997.

Federal Mogul's (TN's new owners) Chapter 11 bankruptcy exit plan resulted in TN asbestos claimants receiving only a small fraction of their entitlement to compensation, in many cases as little as 17%.

This exemption came in to force in 2006. At that time it was also understood that TN claimants were entitled to the state payment under the Pneumoconiosis 1979 Act. It was further understood that the sum of both payments fell well short of the total amount claimants should have received. The Government gave a clear intention not to penalise TN claimants twice.

The DWP (Department worker pension) release

Turner and Newall Compensation Announcement

Today the Government has announced its intention to allow a group of Turner and Newall (TN) workers with asbestos related diseases to keep their full Government compensation alongside that paid by the company.

The Government currently recovers the lump-sum amounts paid out under the Pneumoconiosis etc (Workers' Compensation) Act 1979, to those who are suffering from asbestos-related diseases, if they also receive reduced TN compensation.

However, the Government has decided to act so that those receiving only a fraction of their full compensation from TN will no longer have their lump sum from the Government deducted.

James Purnell, Secretary of State for Work and Pensions 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.

For more information contact Brian Gallagher on +44(0)7957995947