A new scheme designed to introduce fairer compensation for armed services veterans newly diagnosed with mesothelioma contracted as a result of their service has been given a conditional welcome.

The War Pensions Scheme currently offers veterans weekly or monthly payments up to a total of £31,000. They will now have the option of taking a one-off £140,000 lump sum or continuing with regular smaller payments.

The change – which only applies to newly diagnosed cases – is an attempt to close a loophole that enabled civilians diagnosed with the disease to claim a payment of up to £180,000 under the Diffuse Mesothelioma Payment Scheme.

To qualify, veterans must have contracted mesothelioma as a result of military service before April 6 2005. Those choosing to take a lump sum will receive regular payments until the new scheme comes into effect on April 11 2016.

However, the Ministry of Defence (MoD) says it is still considering whether lump sums will be offered to veterans who are currently receiving regular payments.

“I’m pleased that the government has recognised the unfairness of a system that discriminated against those who contracted mesothelioma as a direct result of serving their country,” said Anthony McCarthy, of Macks Solicitors in Middlesbrough.

“But the statement still leaves the position of those who have already been diagnosed with this terrible disease very unclear.

“The Ministry of Defence has left the question hanging in the air and I sincerely hope they quickly decide to do the right thing for the sake of these people and their families.

“I would also question why the £140,000 payment the government has announced is £40,000 short of the sum available to eligible civilians.

“Finally, I would urge armed forces veterans who have developed any asbestos related condition as a result of exposure while serving in the military to act quickly, as strict time limits apply to those wishing to make a claim.”

Mesothelioma is an aggressive form of cancer caused by asbestos exposure and almost always proves fatal, usually in a relatively short time. The exposure can take place up to 50 years or more before symptoms appear.

The new scheme is in response to lobbying from the Royal British Legion. The MoD says it underlines its commitment to the Armed Forces Covenant, which promises fair treatment for serving and former military personnel.

“I have decided that a policy change is required to introduce enhanced arrangements for mesothelioma sufferers,” Minister for Defence Personnel and Veterans Mark Lancaster told MPs.

“These veterans protected the nation with honour, courage and commitment, and we have listened to their concerns to ensure they are treated with the fairness and respect they deserve.”

The Veterans Welfare Service can assist claimants with more information about the choices available to them.

The Crown Proceedings Act prevents former military personnel from suing the MoD for any illnesses caused by asbestos exposure before 1987.

Full details of the Ministry of Defence announcement can be found here.