Solicitors dealing with coal health claims have this week welcomed a review of the multi-billion pound compensation scheme - but fear they will be confused with the more disreputable of claims management companies and have urged the government not to make a knee-jerk reaction to current problems.

The review, announced by Department for Trade and Industry (DTI) minister Malcolm Wicks, will focus on how the government has administered the scheme and how it could better detect and prevent fraud. It comes in light of allegations of fraud raised in Parliament last month over costs related to mining claims brought in the south Yorkshire region, particularly those channelled through some claims management companies.


The review will be concluded by the end of the month and is due to report in the autumn, the DTI said.


The scheme was set up in 1999 to cover lung disease and vibration white finger claims. It has so far paid out £2.6 billion in compensation and sets a fixed fee for lawyers of £1,800.


However, it has been plagued by bad publicity concerning cold calling and door stepping, with law firms coming under fire for alleged double charging of clients.


A Law Society spokeswoman welcomed the review. She said: 'We are currently investigating a number of complaints from claimants or their families.'


Peter Evans, partner at Hugh James, said he hoped the review would focus on the DTI's role in the set-up and administration of the scheme. But he felt pessimistic that it would stick to that remit.


'There is a danger that, knowingly or otherwise, unconnected issues become blurred,' he warned, saying the Law Society and the judiciary should be left out of the debacle. He added: 'We in the profession need to disentangle the issues, otherwise there will be mud thrown everywhere.'


Another leading personal injury firm, Thompsons, said fraud should be stamped out but also had concerns that law firms would be put under scrutiny again. '[Thompsons] certainly should not be compared to claims companies,' a spokeswoman said. Wor