A GOVERNMENT U-turn will finally deliver full compensation to Hampshire lung cancer victims who were exposed to asbestos.

Ministers have abandoned muchcriticised pay-outs worth only 80 per cent of average civil claims, which were agreed in a voluntary deal struck with insurance companies.

The cut was heavily criticised when the Mesothelioma Bill passed last year, when a Conservative MP revealed that she had been silenced by her own party for speaking out.

Now welfare minister Lord Freud has announced a change of heart, promising higher pay-outs for “victims of this truly terrible disease”, or their families.

However, the U-turn will only apply to people diagnosed with mesothelioma from this month – rather than be backdated for those who have already received compensation.

John Denham, Labour MP for Southampton Itchen, said: “It’s pretty cruel. If you were diagnosed in January you only get 80 per cent compensation but if you were diagnosed this month you get 100 per cent.

“Mesothelioma generally kills quite quickly, so we don’t have much time to change the Government’s mind.”

The GMB union said it was “greatly disappointed” that victims and their families compensated since July last year “will not be getting the missing 20 per cent”.

In a statement it said: “Victims from February 2010, when the original consultation began, will receive nothing from this scheme.”

Mesothelioma can take 40 years to develop, but kills within an average of nine months – with Southampton a blackspot, because asbestos was used in shipbuilding, construction and the car industry.

A ‘standardised mortality ratio’ (SMR) is used to identify blackspots, where a figure of 100 would be the expected number of deaths, given the age of the population.

The figures are far, far higher in Southampton (282), Eastleigh (253), Gosport (240) and Fareham (208) – and even in Winchester (139), New Forest (133) and Test Valley (130).

Furthermore, at least 1,500 people die every year nationwide from other asbestos-linked conditions – a figure that could reach 7,500, with better diagnosis, it is argued.

The Department for Work and Pensions (DWP) said that it was increasing pay-outs because fewer people than expected had applied for compensation.

A spokeswoman denied the original settlement was a mistake, saying: “It was based on an assumption of more claims and on what the insurance industry was prepared to fund.”

Lord Freud said: “With this scheme we are continuing to help the many victims and families that mesothelioma has left without financial support.”

With an average pay-out of £126,000 so far, the change is likely to increase that sum by about £31,500 for future claimants.