The government has refused to endorse the services of hundreds of firms dealing with mining health claims because they have not guaranteed that they will charge clients in accordance with a Department of Trade and Industry (DTI) handling agreement, it has emerged.

DTI minister Nigel Griffiths wrote to all 515 firms working on mining claims in December to ask whether they had charged in excess of the 1,800 limit specified in the agreement and, if so, whether they would repay the money - but only 215 (42%) replied by the 23 January deadline.

The vast majority of respondents said they would not 'double charge' clients, although a tiny number have said they do levy extra charges.

The DTI said it was not implying that all firms that failed to respond were overcharging, but it is now in the process of compiling a list of recommended firms on its Web site - www.dti.gov.uk/coalhealth - which will only include firms that set the record straight.

'We would encourage people to use [the firms] that are on the list,' a DTI spokeswoman said.

She said the DTI would not pursue firms in relation to the letter unless it was suggested that they had responded and misinformed the department, adding that it would still consider giving firms another chance to be included on the list if they got in touch.

A Law Society spokesman said the list was a matter between the DTI and individual firms.

He added that the number of reported grievances with solicitors had risen since the Society relaxed its complaints criteria in relation to mining claims late last year.

'The number of complaints to the Law Society about deductions from miners' compensation is now 28,' he said.

Mining claims are proving to be big business for firms; almost 1.9 billion has been paid out so far in compensation, with 138 million going on solicitors' fees.

There are some 8,000 respiratory claims started each week alone.

The latest figures released in Parliament last month showed that reccommended firms are earning the top fees.

Welsh firm Hugh James leads the way, having brought in 35.8 million to 7 January 2004, ahead of trade union specialist Thompsons, which has been paid 34.5 million so far.

Barnsley firm Raleys followed, with 23.7 million, along with Newcastle firms Browell Smith & Co (13.6 million) and Mark Gilbert Morse (10.3 million).

By Paula Rohan