The government announcement comes after Sir Robert Francis, the interim chair of the new Infected Blood Compensation Authority, reviewed the recommendations put forward for the scheme by the public inquiry.
He suggested a number of changes which have been accepted by ministers.
These include additional payments for those subjected to “unethical research”.
This includes an extra £15,000 for those who went to Treloar’s boarding school in Hampshire where children were given higher-risk treatments in order to further medical research.
Richard Warwick, who has haemophilia and went on to develop haemophilia B and HIV after he was given blood products to treat his clotting disorder while he was at the school for disabled children between 1976 and 1982, described the sum as “derogatory and insulting”.
Sir Robert also suggested the existing support scheme that is currently in place should continue. Originally it had been proposed this would end.
Cabinet Office minister Nick Thomas-Symonds said: “This is an important milestone for victims and campaigners who have waited too long for justice. We’re going to do everything possible to deliver compensation quickly.”
Jason Evans, of the campaign group Factor 8, said the move was a “welcome step”.
But he added: “Compensation for those impacted by the infected blood scandal has taken far too long and too many have died waiting.
“Today, the picture of what compensation might look like has become clearer – and now it must be delivered.”
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