The government has announced that it will pursue compensation payments to victims of contaminated blood.

The previous government had announced the scheme in May following the publication of a public inquiry report into the scam.

Campaigners feared payments could be delayed as elections would be announced soon after the announcement.

But ministers said they wanted to move ahead as quickly as possible.

Regulations will be passed before August 24 to allow the first payments to be made by the end of the year.

The infected blood scandal has been called the worst treatment disaster in the history of the NHS.

Between 1970 and 1991, more than 30,000 people became infected with HIV and hepatitis C from contaminated blood products and transfusions.

About 3,000 of them have died — many of them haemophiliacs who were given infected blood products as treatment.

The amount of the payout will depend on individual circumstances but could be in excess of £2 million.

The compensation payable is being assessed based on five criteria – social impact from harm, stigma and isolation, impact on autonomy and private life, cost of care and financial loss.

The first payments will be made to those who were infected. Family members and loved ones of those infected will also be entitled to compensation, but this scheme will not be available until next year.

The Government’s announcement comes after Sir Robert Francis, interim chairman of the new Infected Blood Compensation Authority, reviewed recommendations submitted to the scheme by a public inquiry.

He suggested several changes which have been accepted by the ministers.

These include additional payments to those subjected to “unethical research”.

This includes an additional £15,000 in funding for children who attended Treloar’s boarding school in Hampshire, where children were given high-risk treatments to advance medical research.

Richard Warwick, who has haemophilia and was given blood products to treat a blood clotting problem while studying at a school for disabled children between 1976 and 1982, after which he developed haemophilia B and HIV, described the amount as “outrageous and humiliating”.

Sir Robert also suggested that the existing aid scheme currently in place should be continued. Originally it had been proposed that it be abolished.

Cabinet Office minister Nick Thomas-Symonds said: “This is an important milestone for victims and campaigners who have waited too long for justice. We are going to do everything we can to deliver compensation as quickly as possible.”

Jason Evans, of campaign group Factor 8, said the move was a “welcome step”.

But he added: “It has taken too long to compensate those affected by the infected blood scandal and too many people have died waiting for it.”

“Today, the picture of what compensation will look like has become clearer – and it must now be provided.”