Lawyers who cashed in on miners' compensation fund donated to Brown dinner

A law firm representing injured miners, which has earned itself £123million in controversial Government payouts, has donated money to Gordon Brown's constituency party by sponsoring a table at a fundraising dinner.

Thompsons solicitors – which has been accused by Labour MPs of being part of a legal "feeding frenzy" to "milk" the £4billion compensation scheme for injured miners – sponsored the table at one of Mr Brown's local party fundraising events in 2006.

The disclosure, which is revealed in Mr Brown's 2007 constituency party accounts, will add to growing criticism of the fund's administration and fuel demands for greater transparency over political donations.

Thompsons paid £650 towards the dinner in the Kirkcaldy and Cowdenbeath constituency on May 19, 2006. The event gave diners the opportunity to hear Douglas Alexander, who is now the International Development Secretary.

The pitmen's fund, which has become the world's largest personal-injury scheme, was launched by the Government in 1998 to compensate former miners suffering from lung disease and hand injuries. It has been bedevilled by complaints of waste and inefficiency.

Earlier this month, the Commons Public Accounts Committee condemned Ministers for "seriously mismanaging" the scheme after 750,000 people claimed – instead of the expected 218,000.

Two-thirds of the claims have cost more to administer than the amounts paid out and some applications have taken so long to process, the former miners have died before they could get their cash.

The total cost of the scheme is expected to rise to £6.4billion, with solicitors receiving an astonishing £1.3billion to process the claims.

Edward Leigh, the Tory chairman of the Public Accounts Committee, said the Government should have been "a lot tougher" with solicitors on the conditions attached to their fees.

Thompsons has made more out of the scheme than any other law firm, receiving a total of £123.6million so far.

Labour MPs have been highly critical of the amount of taxpayers' money pocketed by law firms, with North Durham MP Kevan Jones condemning them for "plundering victims' compensation" and John Mann, MP for Bassetlaw in Nottinghamshire, criticising the "feeding frenzy" of law firms.

Fulham Tory MP Greg Hands said last night that he was "shocked" that Thompsons had donated to the Prime Minister's local Labour party.

"These people have milked £123million in fees for representing injured and maimed miners," he said.

"I am amazed that Gordon Brown's constituency Labour party found them to be appropriate donors."

A Labour party spokesman would not say whether Mr Brown was present at the dinner in 2006.

The spokesman added: "Thompsons has a long association with the Labour movement and does a great deal of excellent work on behalf of trade union members."

A spokesman for Thompsons, which has offices nationwide, refused to comment.