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.
My Lords, I chose to join the Grand Committee for the consideration of these regulations this afternoon in part because of the experience of friends and family members older than myself who have suffered from mesothelioma and pneumoconiosis. I also pay tribute to those who campaigned so hard for the 1979 Act and those who campaigned for the changes in 2008, including the deputy leader of Sheffield City Council, Councillor Terry Fox, who was president of the National Association of Colliery Overmen, Deputies and Shotfirers and led a very successful campaign leading up to the 2008 changes.
I really respect the Minister and appreciate her explanation of what has taken place and the Government’s reaction in relation to the Covid-19 pandemic. As she said at the end of her contribution, it is hard to get across to people who have not met anyone who has suffered from mesothelioma or pneumoconiosis just what a tragedy it is for the individual and their family, and the debilitating impact that these diseases have on the longevity, mobility and life chances of those suffering. It was not simply something that happened in the coal and steel industries. I remember, as a young man, that with Turner and Newall in Leeds, it took great campaigners, media appreciation and investigation to bring about change. That was also true of the Sheffield occupational health project, which today works in GP surgeries and does a first-rate job on a shoestring to ensure that it can work with primary care to help those who have those diseases. As the Minister spelled out, it also helps those unable to identify their specific employment as the cause, mainly because the workplace no longer exists, but for whom it is absolutely clear that their illness was associated with employment and that those living around that employment have been affected. That was why the 2008 change came in.
I am sorry that we did not build in automatic uprating in 1979 and 2008, but I am very glad that the Government have, like previous Governments, taken this on board. It is appreciated on behalf of all those currently suffering and those still being identified that the Government, despite disagreements elsewhere over welfare payments, have recognised the enormity of what people are suffering and stepped up to the plate.
My Lords, it is a pleasure to follow the noble Lord, Lord Blunkett, and his reminder of just what a battle the miners had for proper compensation for pneumoconiosis.
Like many people speaking today, I suspect, I have a personal link. My sister, Betty, died of mesothelioma about 15 years ago. It is interesting what a pernicious disease it was. She died in her mid-70s, but one suggestion was that she might have contracted the disease when she left school and went to work in the local ICI, spinning fireproof clothing with cotton and asbestos woven into it. It was freely admitted that the disease might have an incubation period of 50 years. It is a pernicious disease and a cruel one.
I welcome what the Minister has announced today to the effect that notice has been taken of the impact of Covid. Of course, that is a respiratory disease, and one hopes that the understanding of how it could impact on people who are already in the early stages of pneumoconiosis suggests that they should have priority in terms of vaccination.
The 2008 Act was a great step forward, and Parliament can also take credit that there have been nudges since to remove some of the bureaucracy that was left in place so that people get action quicker and more effectively. However, I know from the time when I was a Minister the interest of the noble Lord, Lord Alton, who is not with us today—he is probably doing good somewhere else. Last year he reminded us that 5% to 10% of mesothelioma victims survive for fewer than five years and that we have the highest rate of disease anywhere in the world. So this is not a job done. However, so far as this order is concerned and in terms of the Minister taking responsibility for it, I think there is general confidence that in the noble Baroness, Lady Stedman-Scott, we have someone who will ask the right questions and demand the right action.
3:51 pm
Baroness Gardner of Parkes (Con) [V]
My Lords, I wish to voice my support for the Government in the financial assistance they continue to offer people who have been diagnosed with these terrible diseases. I appreciate that no amount of money can compensate for these life-debilitating diseases, which often lie on the lungs or in the body for years before detection. However, it can help them and their families. Given the impact of the coronavirus pandemic, particularly on the lives and the longevity of those with these diseases, could the Government look at whether there is anything more they can offer to them, be it additional funding, priority vaccines or some other new developments?
My Lords, while I welcome the mesothelioma order, I speak primarily to the pneumoconiosis order, which, as some colleagues may well remember, is close to my heart after the struggle we had between 1974—my first full year as an MP—and 1979 to get the 1979 Act on to the statute book. It was of huge significance for me and my constituency, in which were located many of the slate quarries, working in which had caused many constituents to suffer from silicosis and pneumoconiosis. The Act covered many other industries in which dust caused industrial lung diseases. I also had the Turner and Newall Ferodo factory in Caernarfon—and the noble Lord, Lord Blunkett, referred to the Turner and Newall dimension.
As time is limited, I will ask three brief questions. First, of the cases in which payments have been made in the past 12 months, how many arose from the slate quarrying industry? I realise that it would now be a small minority for two reasons: the scale of the industry has decreased, and many sufferers have either died or have already received benefits. Secondly, can the Minister give any indication as to how many applications have been turned down in the past year, and in those cases, what the main factors were leading to that refusal? Thirdly, and finally, on mesothelioma, can the Minister, who has referred to the impact of Covid on these schemes and referred specifically to lung health checks, please give some clarification as to whether the work of the rapid access clinics, which are vital for early identification of the disease, has been negatively impacted by coronavirus? The Minister has mentioned that time is of the essence. Indeed, it is a vital consideration. I realise that the noble Baroness may not have answers readily at hand, so if necessary, perhaps she could write to me on these matters and put a copy in the Library.
My Lords, as usual, this annual debate on the uprating of mesothelioma and pneumoconiosis regs invokes passionate memories of our industrial heritage and a different time for health and safety. The long latency of these diseases, which others have referred to, means that it can be many years before an individual is aware that they have been infected and, given that the main cause of exposure to mesothelioma is asbestos, its continuing presence in so much of our built environment, such as schools in particular, makes it a risk to be managed not only now but well into the future.
The Control of Asbestos Regulations 2012 are the HSE’s latest offering to help with that, which is to be commended. It is clear that these regs before us today should be supported. It is of regret, however, that it has not been seen fit to narrow or eliminate the gap between compensation paid to sufferers and to dependants. It was originally the intention that this gap be eliminated once resources allowed. It is understood that the 2008 Act payments were to be funded from recoveries from civil compensation arrangements. Can the Minister therefore let us know what the current position is on this and how close we are to closing that gap?
The 2014 payment scheme grew out of concerns that it was proving difficult for individuals to access entitlement to compensation under employers’ liability insurance arrangements; the tracing of policies was difficult and may have been frustrated in part by the industry. Can the Minister tell us what headroom there is in these arrangements? The Minister will recall that the scheme was funded by a levy of 3% on the gross written premiums of the industry. What data does the DWP have on the aggregate amounts of claims for lump sum compensation for mesothelioma, which come under three headings: the 2014 Act, these regulations we are considering to date, and employers’ liability insurance payments?
I first came across mesothelioma in the early 1970s when I was a railway manager in Liverpool. We used to stuff the boilers of locomotives full of asbestos, and of course it became widely known how lethal that was. I pay tribute to the huge efforts that have been made by the trade union movement to bring this matter to prominence. The trade unions often do not get a very good hearing in this House from various quarters, but this is a circumstance in which membership of a trade union is essential, when something like this comes across the horizon.
Could the Minister give us some idea of how many new cases are coming to light and whether there is any knowledge of which industries these come from? It would be comforting to know that this is one of the things which is getting better rather than worse.
My Lords, as a former civil servant, I had responsibility for compensation for industrial illness schemes. Updating the regulations is to be welcomed but I have two questions for the Minister. I agree with my noble friend Lord McKenzie about the unfairness for dependants.
My questions concern the 2008 mesothelioma regulations. First, Regulation 4(1) stipulates that the claimant’s exposure must have been in the UK. There used to be a considerable amount of asbestos on board ships, where mesothelioma—as my noble friend Lord McKenzie said, it has a long latency period—was contracted by many claimants. Can the Minister confirm that personnel at sea on UK ships outside territorial waters are in the UK for the purpose of the regulations?
Secondly, do the tables in the schedule take account of up-to-date increases in the average age of mortality when computing the relative amounts per age of the complainant? In that context, these sad deaths, usually caused in the ordinary routine of earning a living, are all the more premature and might merit larger sums.
4:01 pm
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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.
We have acknowledged in the past the medical research going on with the support of the insurance industry in particular, encouraged by Members of your Lordships’ House. If you look at the scientific and medical advances and endeavours in recent times, perhaps there is hope for sufferers of these diseases as well.