 The infections stemmed from tainted blood products |
Thousands of people in England who contracted Hepatitis C through contaminated blood products given to them on the NHS are to be given financial help by the government. Health officials say the decision to change the rules was made on compassionate grounds, and is no admission of wrong doing.
More than 3,000 patients - mainly haemophiliacs - will be offered ex gratia payments.
A campaign to secure compensation has been fought for 20 years - and more than 1,000 patients have already died.
Patients who caught HIV in a similar way have been compensated.
The hepatitis payouts, if they match those already agreed in Scotland, could mean a maximum of �45,000 per patient.
More than 1,000 patients have so far died from either HIV or hepatitis after catching it through contaminated blood. Mr Reid said: "After becoming secretary of state, I looked at the history of this issue and decided on compassionate grounds that this is the right thing to do in this situation.
"I have therefore decided in principle that English Hepatitis C sufferers should receive ex-gratia payments from the Department of Health."
'Disaster'
The President of the Haemophilia Society, Lord Alf Morris, said: "The contaminated blood disaster is one of the greatest tragedies in the history of the NHS - almost every haemophilia patient treated at the time was infected.
"Today's announcement is a major breakthrough for 20 years of campaigning for recompense.
"The society looks forward to working with government on the detail involved in implementation of the scheme." Successive ministers from 1995 onwards - when the scale of the problem became clear - have rejected calls for compensation for those infected with hepatitis C.
Scots pressure
The campaign has been particularly vocal in Scotland, where 500 infected patients have pushed hard for compensation.
The Scottish Executive promised months ago that sufferers would receive pay-outs of �45,000 but none have received cash yet.
First minister Malcolm Chisholm said that he now expected to move quickly to compensate patients.
The problems date back to the late 1970s and early 1980s, when HIV and hepatitis C contaminated blood passed undetected into products made for haemophiliacs and other patients.
It is reckoned that every haemophiliac receiving regular infusions of blood products during this period was infected with hepatitis C, and many with HIV.
Some other patients regularly receiving blood products, or others simply getting a one-off transfusion, were also left infected.
Heat treatment of blood to kill the viruses was finally introduced in 1985. However, since then, at least 1,000 patients have died.
Donated blood is now screened using modern techniques for both HIV and hepatitis viruses.
Change of tune
Karin Pappenheim, the chief executive of the Haemophilia Society, said that it was the change of stance in Scotland which had proved the turning point.
"It is devolution that has made the biggest difference.
"We have been lobbying since 1995 and getting nowhere, but last year Malcolm Chisholm agreed that compensation should be paid in principle, which was a major breakthrough.
"We've also had a change in health secretary, which has provided the opportunity for a rethink."
She said that relatives of patients who had already died should also be considered for compensation.