UK government ends reduced asbestos compensation for bereaved families

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UK asbestos compensation change

Highlights

From 2025, UK government ends rule reducing asbestos compensation for dependants, raising average payments from £10,700 to £17,700 in government schemes.
Under the new rules, a dependant of a 60-year-old claimant can now receive £56,656 instead of £24,526, correcting a longstanding payment inequity.
Annual cost of equalising payments is estimated at £2 million–£6 million, signalling increased policy and regulatory pressure on UK occupational health compensation schemes.

Compensation reform takes effect

As reported by GOV.UK, the UK government is ending a rule that reduced payments to dependants when eligible workers died before submitting a compensation claim under state schemes for asbestos-related and dust-related diseases.

In 2025, workers with conditions such as mesothelioma and pneumoconiosis received average payments of about £17,700 through government compensation schemes where compensation had not otherwise been secured from an employer. Before the change, loved ones of eligible people who died before claiming received average payments of around £10,700 in 2025, about £7,000 less than the average payment made to sufferers.

Under the new rules, a dependant of a 60-year-old claimant can receive £56,656 instead of £24,526. The government says the reform corrects a longstanding inequity and can help families manage day-to-day costs after a death.

This follows legislation laid in September, with the annual cost of equalising payments estimated at between £2 million and £6 million.

Support for families and wider sector impact

Social Security and Disability Minister Sir Stephen Timms says families should not face a financial penalty after losing a loved one to an asbestos-related disease and describes the reform as a long-overdue correction. UK Government Minister for Scotland Melanie Ward says the change ends outdated compensation rules that have left families short-changed, including in Scotland.

The Health and Safety Executive says asbestos-related diseases continue to cause severe harm and that the effects of past exposure are still being felt by workers and their families. It adds that preventing future harm remains a priority as it continues working with employers and workers to ensure asbestos risks are understood and managed.

The corresponding scheme in Northern Ireland, run by the Department for Communities, is expected to introduce similar changes in due course. The reform highlights continuing policy and regulatory pressure across the occupational health and compensation sector to address the long-term costs of workplace exposure.

Our earlier report on Chancellor John Healey’s October Budget stance outlined his commitment to deficit reduction while trying to preserve support for growth and household finances. We also noted that August GDP rose 0.1%, suggesting modest resilience, even as political pressure builds over how far the government can go in easing living-cost strains without loosening fiscal discipline.

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