Diffuse mesothelioma payment scheme levy for 2014 announced
The Diffuse Mesothelioma Payment Scheme (Levy) Regulations come into effect today. This final element of legislative arrangements for the Scheme places an obligation on active insurers to pay an amount towards the cost of the levy based on their relative market share and sets out how the amounts are determined.
In a written ministerial statement published today, Mark Harper of the Department of Work and Pensions announced that the total amount of the levy for Year 1, covering the estimated costs of the Scheme in the financial year 2014-15 will be £32 million.
The Scheme has been receiving applications since April 2014 and making payments since 1 July. By October it had received 232 applications and made 131 payments totalling £16.5 million. The average payment is said to be around £126,000.
The £32m estimate for the Year 1 levy has been based on data from the first seven months of the Scheme’s operation. As this is a demand-led Scheme the final costs for the first year may vary from this estimate, and will be payable by the end of March 2015. The payment amount an active insurer must pay in the financial year will be determined according to their relative market share for the calendar year two years before the reference period.
This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.