People newly diagnosed with HIV or cancer will be protected from discrimination under proposed disability legislation.

Current law protects people who have had either condition for more than a year, or whose symptoms are evident.

But the proposed extension to the Disability Discrimination Act would cover people from the point of diagnosis.

It would mean it was unlawful for employers to discriminate against an employee for being HIV positive or having cancer.

The changes could affect around 40,000 people.

Campaign groups welcomed the proposals, which are set to be published in a draft Bill later this year.

Restrictions

A spokesman for the Department of Work and Pensions told BBC News Online: "Someone diagnosed as HIV positive would have recourse if their employer tried to sack them for that reason, even if they didn't have any symptoms."

It recognises the impact of prejudice on the employment experiences of many people with HIV Lisa Power, Terrence Higgins Trust

But he said there would still be restrictions on what conditions was affected.

He said: "It will be the sort of cancers which require substantial treatment, so it won't be things like small skin cancers."

Lisa Power, head of policy at the Terrence Higgins Trust said: "We are delighted by the announcement that the disability act will be widened to include HIV and cancer from the point of diagnosis.

"It is extremely important because it recognises the impact of prejudice on the employment experiences of many people with HIV."

Rights and opportunities

Under the proposed legislation, public transport operators could be prosecuted if they refused to let disabled people use buses, trains or planes.

Landlords would also risk prosecution if they refused to make alterations to a disabled person's property.

Work and Pensions secretary Andrew Smith, announced the proposals at the launch of the European Year of the Disabled.

He said: "This draft Bill will significantly advance the rights and opportunities of disabled people up and down the country.

"Together with the establishment of the Disability Rights Commission and the implementation of the Disability Discrimination Act, this represents the biggest extension of rights for disabled people ever seen in this country."