Labour

Government Ends Reduced Asbestos Compensation for Bereaved Families as New Law Takes Effect

New rules effective 31 October 2026 align eligible bereaved families’ asbestos and dust-disease compensation rates with sufferers’ awards under two statutory schemes.

By Staff member • Published 1 November 2026 at 06:50 • 3 min read
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Bereaved families of workers who died from asbestos-related and other qualifying occupational dust diseases can now receive the same statutory compensation rates as sufferers themselves, following a change in the law that took effect on 31 October 2026.

The Department for Work and Pensions (DWP) confirmed that reduced dependant rates have been abolished under two government compensation schemes. Ministers estimate around 300 families a year will benefit, at an additional annual cost of £2 million to £6 million.

How much more could families receive?

Under the 2008 Diffuse Mesothelioma Scheme, the Government gives the example of an eligible dependant of a person who died aged 60. The award rises from £24,526 to £56,656 — an increase of £32,130.

Under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 scheme, a comparable example involving a 60-year-old with a disablement assessment of 31% to 40% sees the dependant award increase from £21,011 to £34,062.

These are examples, not fixed awards for every family. Entitlement and payment amounts depend on the scheme and the circumstances of each claim.

Why the previous system was criticised

The schemes offer lump-sum payments for certain diseases caused by work, where compensation has not been secured from an employer — often because the business no longer exists. Occupational diseases such as mesothelioma and pneumoconiosis may emerge many years after exposure.

DWP figures show average awards during 2025 of around £17,700 for sufferers and £10,700 for eligible dependants. Campaigners argued that the lower dependant rate disadvantaged families when a worker died before claiming.

What the Government has changed

The reforms align the relevant dependant award rates with the rates payable to sufferers under the 1979 and 2008 schemes. They also follow an independent legal review recommending clearer award calculations and rules governing the relevant date for assessment.

Minister for Social Security and Disability Sir Stephen Timms said families should not face a financial penalty following the death of a loved one. The Government credits sustained campaigning by the Asbestos Victims Support Group Forum UK and parliamentarians.

Who is eligible — and are older claims covered?

The changes took effect on 31 October 2026 and are not retrospective. They concern qualifying new dependant claims, subject to the detailed statutory entitlement conditions and relevant dates for each scheme. Making a fresh application does not automatically bring an earlier death or claim within the new rules.

The reform applies in England, Scotland and Wales. The DWP says Northern Ireland’s corresponding scheme, administered separately by the Department for Communities, is expected to introduce similar changes in due course.

What happens next?

Eligible families must still satisfy the applicable scheme requirements. The changes do not guarantee compensation for every bereaved relative or replace other available legal routes for recovering damages.

The new rules nevertheless remove the previous lower statutory dependant rates in qualifying cases, potentially increasing payments by thousands of pounds for families affected by occupational disease.

Sources

  1. Department for Work and Pensions: commencement announcement, 31 October 2026
  2. Department for Work and Pensions: legislation announcement, 1 September 2026
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