Haemophiliacs who contracted HIV from infected blood are set to see payments they receive from the Government double but those infected with hepatitis C will get no extra cash.
Some 4,670 haemophiliacs who received blood transfusions in the 1970s and 1980s were infected with hepatitis C, 1,243 were also infected with HIV.
For years the NHS used imported blood from the US to treat haemophiliacs, often collected from paid "skid row" donors such as prison inmates who were more likely to have HIV and hepatitis.
Nearly 2,000 people have died as a result of exposure to the tainted blood.
Earlier this year Lord Archer of Sandwell issued a string of recommendations after a two-year inquiry into the scandal.
He suggested a Government apology, a statutory advisory panel and compensation at least equal to that paid to patients in Ireland.
But Health Minister Dawn Primarolo announcing the Government's response rejected campaigners' demands for substantial compensation payments.
Instead she said that funding for two trusts set up for those infected with HIV through contaminated blood would be increased to allow annual payments of £12,800 to each infected person.
The Macfarlane and Eileen Trusts currently make discretionary one-off or regular payments of around £6,400. Both trusts will also be given more funding so they can make higher payments to the families and dependants of victims.
The Skipton Fund - which provides lump sum payments to people infected with hepatitis C from infected blood - will receive no extra funding but ministers will review the situation again in 2014.
