These miners worked in some of the worst conditions in the world Energy Minister John Battle

Each individual payout to compensate ex-miners who developed ill health after exposure to coal dust, will be determined by the level of disability and the number of years the men were exposed to it.

The government will set up 30 centres after Easter, across the country to examine individual cases and decide how much each ex-miner should receive.

Already 65,000 ex-miners, including 15,000 widows of those who died after developing work-related illnesses, have already registered claims but there are expected to be thousands more applications.

Tom Jones, of law firm Thompsons, which represents 26,000 ex-miners and widows, said: "At long last miners who have been waiting nearly two decades and through years of legal action will receive fair compensation.

"Tens of thousands of men have died or had their health severely damaged by British Coal's cynical attitude to health and safety."

The miners took legal action against the government and the nationalised coal industry eight years ago.

They claimed it had been known for decades dust produced in the coal mining process could cause lung disease but not enough was done to protect them.

They won their case in court two years ago triggering the launch of negotiations.

Energy Minister John Battle welcomed the settlement and pledged to speed up payments.

"These miners worked in some of the worst conditions in the world," he said.

Offers of compensation are expected to be made from the end of April, and will be reduced for those who smoked.

Miners who worked from 1954 will be eligible for the compensation.

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