The Minister of State, Department for Work and Pensions (Baroness Sherlock) (Lab)

My Lords, I will also be asking the Grand Committee to consider the draft Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2026. The schemes we are debating provide vital support for sufferers of certain dust-related diseases, which are often caused by occupational exposure to asbestos and other harmful dusts. This includes diseases such as pneumoconiosis and mesothelioma. We all recognise the deep suffering that can be caused by diseases such as these. Having attended these debates in the past, I am always grateful for the opportunity to debate these schemes and discuss the wider support for people diagnosed with these terrible diseases. I will begin by providing a brief overview of these two no-fault compensation schemes and what these regulations seek to amend. The Pneumoconiosis etc. (Workers’ Compensation) Act 1979—henceforth the 1979 Act scheme—provides a single lump-sum compensation payment to eligible individuals who suffer from one of the diseases covered by the scheme. They includes diffuse mesothelioma, pneumoconiosis and three other dust-related respiratory diseases. It was designed to compensate people who were unable to claim damages from former employers that had gone out of business and who had not brought any civil action against another party for damages. To be entitled to a lump-sum award, claimants must have an industrial injuries disablement benefit award for a disease covered by the 1979 Act scheme or would have an award but for their percentage disablement. The mesothelioma lump-sum payments scheme—or the 2008 Act scheme—was introduced to provide compensation to people who contracted diffuse mesothelioma but were unable to claim compensation through the 1979 Act scheme because, for example, they were self-employed or their exposure to asbestos was not due to their work. The 2008 Act scheme provides support to people with diffuse mesothelioma quickly at their time of greatest need. Although both schemes aim to provide compensation to sufferers within their lifetime, they also allow claims by dependants if the person suffering from the disease sadly dies before they are able to make a claim. This is in recognition of the suffering that these diseases can bring to whole families. These regulations will increase the value of one-off lump-sum payments made under these schemes for those who first become entitled to a payment from 1 April 2026. While there is no statutory requirement to increase the rates of these payments in line with prices each year, we are maintaining the position taken by previous Governments and increasing the value of lump-sum awards by 3.8%, in line with the September 2025 consumer prices index. This also means that the increase will, once again, be in line with the proposed increases to industrial injuries disablement benefit as part of the main social security uprating provisions for 2026-27.