Payments will be made in England by the end of October, while the devolved administrations in Scotland, Wales and Northern Ireland will have responsibility for distributing the funds in their own nations.

The decision to make tax-free interim payments to those who have been infected and bereaved partners follows a recommendation last month from Sir Brian Langstaff, who chaired the inquiry into the scandal.

Announcing the move, outgoing prime minister Boris Johnson said: “While nothing can make up for the pain and suffering endured by those affected by this tragic injustice, we are taking action to do right by victims and those who have tragically lost their partners by making sure they receive these interim payments as quickly as possible.

“We will continue to stand by all those impacted by this horrific tragedy, and I want to personally pay tribute to all those who have so determinedly fought for justice.”

Kit Malthouse, Chancellor of the Duchy of Lancaster, said: “Those affected by the infected blood scandal have suffered terribly over many years and that heart-breaking and unimaginable pain has been compounded by the financial uncertainty many have faced.

“These interim payments will start the process of securing that certainty. My priority is to get the money to those people as quickly as possible.

“I am grateful to Sir Brian Langstaff for the work he has done to date on the inquiry, and Sir Robert Francis, for his work on compensation. Of course, no amount of money will compensate for the turmoil victims and their loved ones have faced, but I hope these payments help to show that we are on their side and will do everything in our power to support them.”