Jeremy Hunt has said "no decisions" have been made over the level of Compensation for Victims of the Infected Blood scandal following their decades of suffering.

Appearing before the official Infected Blood Inquiry on Friday, the chancellor said he cannot ignore the dire economic context while making judgments on "potentially very large" sums of money.

He insisted the government has "accepted the case" for a compensation scheme and has been working "at pace" on how to deliver it.

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But campaigners said his failure to offer any timeline or further details had left them "disheartened beyond words".

Thousands of people died in what is widely recognised as the worst treatment disaster in the history of the NHS after people were given contaminated blood products in the 1970s and 1980s.

Last year an interim compensation scheme was established for victims and bereaved partners, but campaigners want to see this extended to include more people affected, including bereaved parents and orphaned children.

Asked about funding, the former health secretary said: "No decisions have been made about the level of compensation or how it will be funded.

"We're in very active and detailed discussions about all of that, but I can't therefore be drawn on where that funding would come from."

Mr Hunt said a report in the Financial Times in May suggesting the scheme could cost £10bn was "absolutely not" an authorised leak from the Treasury.

He said he will have to take into account the "challenging" economic situation when deciding what is affordable for the taxpayer.

"It's a very uncomfortable thing for me to say but I can't ignore the economic and fiscal context, because in the end the country only has the money that it has."

It is the second time Mr Hunt is giving evidence to the inquiry, which was set up in 2017 to investigate how thousands of patients in the UK developed HIV and hepatitis C through contaminated blood products.

About 2,900 people have died since the inquiry began and it is estimated that even now, victims continue to die at a rate of one every four days.

Many had the blood-clotting disorder haemophilia and were given injections of the US product Factor VIII.

Under an initial scheme, only victims themselves or bereaved partners could receive an interim payment of around £100,000.

'Disheartened beyond words'

Campaign group Factor 8 said Mr Hunt's failure to offer details on a full compensation scheme left those affected by the scandal "disheartened beyond words".

Factor 8 director Jason Evans said: "Today, as a community, we grapple with an amplified sense of sadness and disillusionment.

"No new information or timetable was given to the distressed victims and mourning families entangled in the infected blood scandal.

"Despite the pressing need for immediate acceptance of the inquiry's recommendations, Hunt squandered this decisive opportunity to expedite the pursuit of justice for the aggrieved victims and their families.

"We are disheartened beyond words. His inaction is a bitter sting, a stark reminder of unfulfilled promises."

In April, chair of the inquiry Sir Brian Langstaff recommended parents and children who suffered bereavements should be awarded interim compensation payments.

He said he was taking the unusual step of publishing the recommendation ahead of the full report into the scandal so victims would not face any more delays.

However, the government has insisted it will wait for the conclusion of the inquiry before making decisions on the compensation scheme.

Pressed on this position, Mr Hunt told the inquiry it is "responsible and right to the taxpayers who are funding this... to see the full context of the horrific scandal".

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He refuted the suggestion the government might be delaying the payments until the inquiry's conclusion so as to turn the scandal into a "good news story".

"Can I just say this very plainly, there is no good news story in this scandal, none whatsoever," said Mr Hunt.

He said ministers "totally understand the urgency of the situation", adding: "I do appreciate that the way government works might seem frustratingly slow, but I am absolutely content that the government has been acting a pace."

It comes after Prime Minister Rishi Sunak was heckled and laughed at by those watching the proceedings in central London earlier this week when insisting ministers were working quickly to deliver the payments.