British Coal Compensation Lord Lofthouse of Pontefract asked Her Majesty’s Government: Further to the Written Answer by Lord Truscott on 13 March (WA 104) on British Coal compensation, whether, in view of their concerns in respect of the Data Protection Act 1998, they will instruct the Department of Trade and Industry’s claims handlers, CAPITA, to relay an open letter with the text approved by the Government from Lord Lofthouse of Pontefract to retired miners and widows who have pursued claims in the British Coal respiratory disease litigation and British Coal vibration white finger litigation advising them of their rights of redress against their former solicitors. [HL2898] The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Truscott) The department’s view is that it would be disproportionate to write to each miner and widow. We continue to work with the Legal Complaints Service (LCS) to bring the issue to claimants’ attention, and the forthcoming edition of the Compensation for Miners newsletter will feature an article on the role of the LCS and its contact details. Some 45,000 copies of the newsletter are printed and distributed to doctors’ surgeries, citizens advice bureaux and MPs, and a copy is placed on the DTI website. Lord Lofthouse of Pontefract asked Her Majesty's Government: Further to the Written Answer by Lord Truscott on 15 January (WA 119) on British Coal compensation, whether any audit has been undertaken in respect of the sum of £28.8 million paid to the Union of Democratic Mineworkers. [HL2899] Lord Truscott Audits are regularly undertaken of the financial management and process procedures of payments to all claimants’ solicitors which includes the Union of Democratic Mineworkers. This gives an assurance that payment has been correctly made. The most recent audit was undertaken in October 2006. Lord Lofthouse of Pontefract asked Her Majesty’s Government: Further to the Written Answer by Lord Truscott on 15 January (WA 119) on British Coal compensation, whether any assessment has been undertaken in respect of the payments of £591 million to 15 firms of solicitors in the British Coal respiratory disease litigation. [HL2900] Lord Truscott No such assessment has been undertaken. The National Audit Office is currently undertaking a review of the coal health schemes. Lord Lofthouse of Pontefract asked Her Majesty’s Government: How many retired miners and widows in the British Coal respiratory disease litigation and British Coal vibration white finger litigation died after lodgment of their claims prior to receiving final compensation. [HL2901] Lord Truscott As at 18 March 2007, the number of deceased claims where the miner’s date of death is later than the date of claim but earlier than the final damages payment is as follows: chronic obstructive pulmonary disease (COPD) = 16,848; vibration white finger (VWF) = 4,177. There are 1,662 claims that appear in both the VWF and COPD list. It should be noted that those figures relate only to those claims where the miner himself died prior to receiving final compensation, not the widow. It should additionally be noted that the figures for VWF do not include those claims with outstanding services claims. Lord Lofthouse of Pontefract asked Her Majesty’s Government: Whether they have made an updated assessment of the total administration costs of the British Coal respiratory disease litigation and British Coal vibration white finger litigation by reference to the forecast of £2.4 billion in 31 July 2006 relied upon by the National Audit Office in its publication, Work in Progress: Coal Health Compensation Schemes. [HL2902] Lord Truscott Our latest forecast, as at the end of October 2006, still envisages a total administrative expenditure of circa £2.4 billion. This figure includes plaintiff costs and costs borne by the defendant (Department of Trade and Industry). The department is currently undertaking a forecasting exercise for close of accounts and will be able to offer a revised figure by the end of April 2007. Lord Lofthouse of Pontefract asked Her Majesty's Government: How many claimants were refused or awarded compensation under the British Coal respiratory litigation, broken down between payments made in the following bands: (a) no award of compensation; (b) 1p to 99p; (c) £1 to £2; (d) £3 to £4; (e) £5 to £6; (f) £7 to £10; (g) £11 to £15; (h) £16 to £20; (i) £21 to £25; (j) £26 to £30; (k) £31 to £40; (l) £41 to £50; (m) £51 to £60; (n) £61 to £75; (o) £76 to £100; (p) £101 to £200; (q) £201 to £300; (r) £301 to £500; (s) £501 to £1,000; (t) £1,001 to £2,000; (u) £2,001 to £3,000; (v) £3,001 to £4,000; (w) £4,001 to £5,000; (x) £5,001 to £10,000; (y) £10,001 to £25,000; and (z) in excess of £25,001. [HL2948] Lord Truscott The number of claims that were settled by denial/withdrawal or awarded compensation under the chronic obstructive pulmonary disease (COPD) scheme, broken down as requested, are shown on the table below: --------------------------------------------- |Total damages paid on claim (£) |COPD | --------------------------------------------- |Claims settled by denial/withdrawal|55,186 | --------------------------------------------- |1p to 99p |17 | --------------------------------------------- |£1 to £2 |65 | --------------------------------------------- |£3 to £4 |81 | --------------------------------------------- |£5 to £6 |88 | --------------------------------------------- |£7 to £10 |204 | --------------------------------------------- |£11 to £15 |240 | --------------------------------------------- |£16 to £20 |293 | --------------------------------------------- |£21 to £25 |284 | --------------------------------------------- |£26 to £30 |315 | --------------------------------------------- |£31 to £40 |684 | --------------------------------------------- |£41 to £50 |625 | --------------------------------------------- |£51 to £60 |715 | --------------------------------------------- |£61 to £75 |970 | --------------------------------------------- |£76 to £100 |1,636 | --------------------------------------------- |£101 to £200 |6,698 | --------------------------------------------- |£201 to £300 |7,152 | --------------------------------------------- |£301 to £500 |15,318 | --------------------------------------------- |£501 to £1,000 |33,760 | --------------------------------------------- |£1,001 to £2,000 |155,574| --------------------------------------------- |£2,001 to £3,000 |29,193 | --------------------------------------------- |£3,001 to £4,000 |23,202 | --------------------------------------------- |£4,001 to £5,000 |13,055 | --------------------------------------------- |£5,001 to £10,000 |31,229 | --------------------------------------------- |£10,001 to £25,000 |33,426 | --------------------------------------------- |Greater than £25,000 |17,959 | --------------------------------------------- |TOTAL |427,969| --------------------------------------------- Claimants' solicitors agreed to implement a minimum payment top-up scheme to claimants. Under this scheme, solicitors will themselves effectively be making the payments by discounting their fees to make top-up payments to their clients whose offers fall below £500. Lord Lofthouse of Pontefract asked Her Majesty's Government: How many claimants were refused or awarded compensation under the British Coal vibration white finger litigation, broken down between payments made in the following bands: (a) no award of compensation; (b) 1p to 99p; (c) £1 to £2; (d) £3 to £4; (e) £5 to £6; (f) £7 to £10; (g) £11 to £15; (h) £16 to £20; (i) £21 to £25; (j) £26 to £30; (k) £31 to £40; (l) £41 to £50; (m) £51 to £60; (n) £61 to £75; (o) £76 to £100; (p) £101 to £200; (q) £201 to £300; (r) £301 to £500; (s) £501 to £1,000; (t) £1,001 to £2,000; (u) £2,001 to £3,000; (v) £3,001 to £4,000; (w) £4,001 to £5,000; (x) £5,001 to £10,000; (y) £10,001 to £25,000; and (z) in excess of £25,001. [HL2949] Lord Truscott The number of claims that were settled by denial/withdrawal or awarded compensation under the vibration white finger (VWF) scheme, broken down as requested, are shown on the table below: --------------------------------------------- |Total damages paid on claim (£) |VWF | --------------------------------------------- |Claims settled by denial/withdrawal|34,982 | --------------------------------------------- |1p to 99p |0 | --------------------------------------------- |£1 to £2 |0 | --------------------------------------------- |£3 to £4 |0 | --------------------------------------------- |£5 to £6 |0 | --------------------------------------------- |£7to £l0 |0 | --------------------------------------------- |£11 to £15 |0 | --------------------------------------------- |£16 to £20 |0 | --------------------------------------------- |£21 to £25 |0 | --------------------------------------------- |£26 to £30 |0 | --------------------------------------------- |£31 to £40 |1 | --------------------------------------------- |£41 to £50 |0 | --------------------------------------------- |£51 to £60 |0 | --------------------------------------------- |£61 to £75 |1 | --------------------------------------------- |£76 to £100 |1 | --------------------------------------------- |£101 to £200 |17 | --------------------------------------------- |£201 to £300 |37 | --------------------------------------------- |£301 to £500 |307 | --------------------------------------------- |£501 to £1,000 |3,345 | --------------------------------------------- |£1,001 to £2,000 |2,175 | --------------------------------------------- |£2,001 to £3,000 |5,660 | --------------------------------------------- |£3,001 to £4,000 |8,244 | --------------------------------------------- |£4,001 to £5,000 |7,111 | --------------------------------------------- |£5,001 to £10,000 |37,405 | --------------------------------------------- |£10,001 to £25,000 |36,717 | --------------------------------------------- |Greater than £25,000 |6,474 | --------------------------------------------- |Total |142,477| --------------------------------------------- Lord Lofthouse of Pontefract asked Her Majesty’s Government: Further to the Written Answer by Lord Sainsbury of Turville on 27 March (WA 93) on British Coal compensation, whether they have made a further assessment of the projected date by which all claims under the British Coal vibration white finger litigation will have been settled; and what is the updated estimated cost that will be incurred, broken down between (a) CAPITA and all other contractors; (b) the claimant’s legal costs; (c) the defendant’s legal costs; (d) the internal costs of the Department of Trade and Industry; and (e) compensation which remains to be paid to the claimants. [HL2951] Lord Truscott Our estimated date for substantial completion of the VWF scheme is the end of 2007. We envisage that the total number of claims settled (by payment, denial or strike-out) will be circa 170,000. The predicted total spend on the vibration white finger (VWF) scheme based on forecasts prepared at the end of October 2006 is given below. a) CAPITA and other contractors: £630 million (estimated). This is a total figure and has not been broken down into schemes. Medical costs (VWF only): £31 million (estimated). b) Claimants’ legal costs: £161 million (estimated). c) Defendants’ legal costs: £47 million (estimated). This is a total figure and has not been broken down into schemes. d) DTI internal costs: information not available at this level. e) Compensation: £1,728.5 million (estimated) including CRU payments. The forecast does not include RPI. The department is currently undertaking a forecasting exercise for close of accounts and will be able to offer a revised figure by the end of April 2007. Lord Lofthouse of Pontefract asked Her Majesty's Government: Further to the Written Answer by Lord Sainsbury of Turville on 27 March (WA 93) on British Coal compensation, whether they have made a further assessment of the projected date by which all claims under the British Coal respiratory disease litigation will have been settled; and what is the updated estimated cost that will be incurred, broken down between (a) CAPITA and all other contractors; (b) the claimant's legal costs; (c) the defendant's legal costs; (d) the internal costs of the Department of Trade and Industry; and (e) compensation which remains to be paid to the claimants. [HL2952] Lord Truscott Our estimated date for substantial completion of the COPD scheme is spring 2009. We envisage that the total number of claims settled (by payment, denial or strike-out) will be circa 590K. The predicted total spend on the chronic obstructive pulmonary disease (COPD) scheme based on forecasts prepared at the end of October 2006 is given below. a) CAPITA and other contractors: £630 million (estimated). This is a total figure and has not been broken down into schemes. Medical costs (COPD only): £395 million (estimated). b) Claimants' legal costs: £1,209 million (estimated). c) Defendant's legal costs: £47 million (estimated). This is a total figure and has not been broken down into schemes. d) DTI internal costs: Information not available at this level. e) Compensation: £2,540 million (estimated) including CRU payments. The forecast does not include RPI. The department is currently undertaking a forecasting exercise for close of accounts and will be able to offer a revised figure by the end of April 2007. Lord Lofthouse of Pontefract asked Her Majesty's Government: How many claims lodged at common law by former surface workers are excluded from the claims-handling agreement of the British Coal respiratory disease litigation; whether compensation has been awarded in respect of any such claims; and whether any assessment has been made of the merits of ex gratia payments being made to those men. [HL2953] Lord Truscott All the surface worker claims registered under the British Coal respiratory disease litigation (BCRDL) have been rejected under the claims-handling arrangement and therefore fall outside it. At 18 March 2007, the number of rejected surface worker cases within the BCRDL was 9,713. Compensation has not been awarded to any pure surface worker claims under the BCRDL. Ministers have considered the merits of ex gratia payments and concluded that payments cannot be made without liability being established. At this stage it is not possible to identify the number of other surface worker claims against British Coal that may be in existence. The presiding judge, Mrs Justice Swift, last week ordered that pure surface workers wishing to pursue a claim are to identify themselves by 29 June 2007. The department welcomes this progress.