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UK advances asbestos legislation

The British Government will bring forward legislation to ensure that at least 800 sufferers of asbestos-related diseases are able to keep their full compensation.

About 800 cases are likely to benefit from the decision, but this figure is expected to rise over the next 50 years. The estimated cost over the next three years is £10 million ($25 million) – a figure that could jump to £40 million ($99 million) in line with the rise in cases.

The decision means workers at UK companies associated with US manufacturer Federal Mogul, which became insolvent under US insolvency legislation, will receive compensation.

Federal Mogul said it was not in a position to meet liabilities that arose from asbestos-related diseases. A trust fund was set up to meet part of the liabilities.

The UK Government says the unprecedented step to exempt this particular trust recognises the unique position in which former employers of Federal Mogul’s UK subsidiaries have found themselves.

Workers will be exempt from a scheme that ensures those paid government compensation return state accident or injury money once they are paid.

“These are terrible illnesses,” Secretary of State for Work and Pensions John Hutton said. “It is absolutely right that we do our utmost to relieve any unnecessary financial concerns from the sufferers and their families.”