The planned legislation will allow companies that have paid out compensation to recoup some of the costs from the centrally regulated Financial Services Compensation Scheme. Combined with the Compensation Act 2006, the new legislation should stream-line the compensation process.

Ed Balls, secretary to the Treasury, explained

"Mesothelioma is a disease that has a devastating impact on people’s lives. These changes should help victims of this disease receive more timely access to compensation where the Financial Services Compensation Scheme is involved."

The Compensation Act 2006 allowed mesothelioma victims to claim full compensation from a single employer even if exposure to asbestos could have occurred while working for a number of companies. The change in the law was designed to speed up compensation claims which were often delayed while companies negotiated over who would pay what proportion of the compensation.