CAMPAIGNERS for former miners were celebrating last night after the Government acted to stamp out exploitation by lawyers taking a slice of their compensation.

The Lord Chancellor, Lord Falconer, pledged to regulate solicitors and other claim-handling firms accused of wrongly charging former pitmen.

Ministers, who had warned firms they were "drinking in the last-chance saloon", ran out of patience when few agreed to a voluntary code of practice.

A powerful regulator will be appointed, to be overseen by the Legal Services Board. However, it could be two years before the legislation is in place.

Durham North MP Kevan Jones said: "I am delighted that the Government is going to regulate this sector.

"However, I am concerned, in the meantime, to ensure that action is taken immediately to prevent sharp practices by these claim-handlers."

Mr Jones said the Office of Fair Trading should act now against misleading adverts and to ensure money was paid back to former miners who had already been ripped off.

He also raised the alarm over hints that the Claims Standards Council -a voluntary group set up in November -could be adapted to become the regulator.

He said: "That would be like giving Dracula the keys to the bloodbank.

"Many of the firms in north Durham are founder members of that organisation."