In November 1987 the Hæmophilia Society lobbied parliament for recognition of infection due to medical and administrative negligence, and for compensation. Lobbying was rewarded with a £10 million one-off payment. This was administered by the newly set up charity, the MacFarlane Trust, to give individuals and families a bonus of £35 per week. The DHSS made it clear that this was not compensation. The money was provided for the relief of need. This meant that no HIV-positive people with hæmophilia had an absolute right to payment.

Kenneth Clarke took over the new Department of Health in summer 1988 and found writs from 20 people with hæmophilia sitting on his desk. By then, people with hæmophilia in West Germany had received £50,000 each in government compensation; the New Zealand, Danish and Norwegian governments responded similarly to their liability.

The Hæmophilia Society advised their members to continue pursuing their law suits and recommended a government payment of £100 million. This resulted in the much publicised release of £24 million to be administered by the MacFarlane Trust as lump sums of £20,000 to people with hæmophilia and HIV or their bereaved families. Again, the message was that there was `no concession to the principle of fault' and that litigation would have to continue if people with hæmophilia wanted more money.

The Hæmophilia Society continued to press for an out of court settlement. By February 1990 the overwhelming majority of all people with hæmophilia infected with HIV, or the families of those who had died, had issued a writ against the Department of Health.

The Hæmophilia Society persuaded the 1922 Committee of Tory backbenchers to support their campaign, but Margaret Thatcher continued to refuse to settle the issue (increasing her unpopularity). It was only after she had resigned and John Major's government was established that a settlement was reached in December 1990.

Amounts made available varied according to marital status, age, and whether children were involved. The figures concerned were between £20,000 and £60,000. This was on top of the assigned £20,000 awarded in 1988. The MacFarlane Trust is also now making weekly payments. The 1990 settlement was made on the condition that individuals dropped their court action. People with hæmophilia and HIV accepted the award, although a limited number have continued their actions, on legal advice, where negligence could be proved.

In August 2001 Lord Owen, the former UK Health Secretary under the Callaghan Labour government, accused the Health Department of failing to implement instructions issued whilst he was Health Secretary in the 1970s which should have ensured that the UK became self-sufficient in blood products. This would have eliminated the risk of people with haemophilia becoming infected with HIV or other viruses like hepatitis C.

Imports of blood products, especially from the US, continued to be received in the UK, without the knowledge of Lord Owen. Lord Owen made a call for compensation for people who have contracted viruses from contaminated blood. A Haemophilia Society spokesman said that although the Government had set up a compensation scheme for people who had contracted HIV, it had done nothing for those infected with hepatitis C.

The Department of Health said they found it difficult to respond to events that occurred so long ago, but that, as Secretary of State for Health, it was Lord Owen's job to ensure that his policy was carried out.