MP’s have found that solicitors and claims handlers have made more than £1.3 bn from the government's compensation scheme for coal miners suffering poor health.
The Public Accounts Committee's report on the coal health compensation scheme, begun by the then-Department of Trade and Industry (DTI) in 1998 was released this week.
The DTI's successor, the Department for Business, Enterprise and Regulatory Reform, has calculated that the final cost of the compensation schemes will be £4.1bn in payments and £2.3bn
administration costs - including £1.3bn in solicitors and claims handlers fees. The report finds that solicitors firms such as Beresfords has so far made £115m and Raleys has earned £72.4m
from the scheme.
John Mann MP welcomed the report saying that he has been vindicated in his criticisms over the mismanagement of the scheme.
John Mann commented, “The report has highlighted the excessive profits that solicitors have made from the scheme. It deeply concerns me that some solicitors used this opportunity to make
even more money when they double-charged sick miners through deducting fees from their compensation payments. Those solicitors who continue to refuse to repay this money should be struck
off.”
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