A PROPOSED clampdown on miners' compensation claims could save the Government £2bn, it was revealed last night.

Last week, The Northern Echo published details of controversial Department of Trade and Industry (DTI) plans to cut payments to about 40 per cent of respiratory disease claimants.

The proposals have been condemned by miners' leaders and their lawyers.

Now it has been revealed that the Government could cut up to £2bn off their compensation bill.

The issue is so sensitive that civil servants have been urged not to publicly discuss savings. The proposals are expected to affect two groups of claimants - about 230,000 people.

It is understood that instead of receiving thousands of pounds per claim, former miners or their families in these groups would receive a relatively modest offer.

Claimants who turn down this offer would not have the option of having a medical assessment, unlike all previous claimants.

Groups affected are understood to include people whose lung functions appear normal, but who may still have underlying lung disease, and the families of deceased miners who have no medical records.

DTI officials will say only that undisclosed plans to "radically simplify" the process were submitted to the High Court on Monday.

The court was due to rule on October 18 whether the new approach to claim- handling can come into force, but following objections from the lawyers, more legal discussions will take place on October 17 and 18.

Roger Maddocks, from Irwin Mitchell, a member of the steering group of lawyers handling claims, said they had objections.

He said: "We are interested in any proposals that would provide people with an offer, but we are opposed to any proposal whereby those who turn down an offer would lose their option of staying within the handling scheme."

Mr Maddocks said there was a potential for injustice if the proposals were imposed on claimants. He predicted that many people would pursue their claims individually, which he said would be a disaster.

Compensation to respiratory disease claimants total £1.2bn, but with 380,000 claimants awaiting assessment, the process could continue until 2011.

MP Mick Clapham, who chairs the Coalfield Communities Group, said: "Where a person has a grievance, there should be a route for that grievance to be resolved and that route should be through the medical assessment process."

A DTI spokeswoman criticised speculation about the proposals and said the DTI wanted to speed up the process and increase the number of payouts.