Turner and Newell workers will not have to repay benefit

Published on Fri 24 Nov 2006

Victims of the asbestos giant Turner and Newell will not have to repay any benefit money they have received from the British government.

Money received from the government is usually repaid to ensure that the taxpayer does not subsidise compensation claims. The change in policy in this instance comes after the huge publicity garnered by the Turner and Newell case. There was widespread disgust after it was revealed that people owed compensation would receive only 20 pence for every pound of their claim, while the companies responsible for administering the fun would be paid, in full, to the tune of  £70 million pounds. Turner and Newell’s parent company, American firm Federal Mogul, filed for bankruptcy in 2004.

The decision was welcomed by solicitors acting on behalf of some of the victims. Ian McFall, head of asbestos litigation at Thompsons Solicitors, said

“This is a swift and compassionate move by the government which will make a real difference to thousands of asbestos sufferers and their families. These claimants have had an agonising wait for their compensation, since T&N went into administration, and even though the settlement fund has now been established, they are only likely to receive about 20p in the £1 – significantly lower than the real worth of their claims.

“To have to lose still more of their damages by paying back benefits to the government would have been a very difficult thing for claimants to understand. We welcome this move, which will help hundreds of people immediately and many more who may claim in the future.”

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