PRIME Minister David Cameron has announced the Government will spend an extra £125m on a “much fairer, comprehensive” compensation scheme for victims of a contaminated blood scandal.

The outgoing PM made the announcement during his last appearance in the House of Commons when he answered questions from MPs.

The scandal – described as the worst treatment disaster in the history of the NHS – led to 4,670 patients who received blood transfusions in the 1970s and 1980s being infected by Hepatitis C, while 1,243 of those were also infected with HIV.

In 2009 an independent inquiry concluded that commercial priorities had overridden the interests of public health with cheap blood products being bought from US suppliers to bolster stocks in England and Wales.

Campaigners, who included Carol Grayson, from Newcastle, have fought for higher compensation payments for those affected.

Her husband, Peter Longstaff, who was infected in the 1970s, also strived to achieve justice for the victims of contaminated blood until he himself succumbed to the effects of Hepatitis C in April 2005.

The scandal also prompted a campaign by The Northern Echo.

Mr Cameron said victims of Hepatitis Stage One will receive £3,500 per year rising to £4,500 per year by the end of Parliament.

For those with Hepatitis C at Stage Two, HIV or co-infected with both, annual payments will increase over the lifetime of Parliament and will “enhance the support for those who have been bereaved or will be in future”.

Mr Cameron said: “Last year I apologised to the victims on behalf of the British Government for something that should never have happened. Today I’m proud to provide them with the support they deserve.”