Serious shortcomings have been exposed in the Government’s plan to offer compensation or resettlement to hundreds of serving and former staff in Iraq.

During a discussion at the House of Commons last night, MPs and campaigners argued that the assistance package, announced by David Miliband in a written statement, was too little and too late.

The Government ordered a review two months ago, after The Times highlighted the plight of Iraqi interpreters working for the British who face persecution by insurgents for being “collaborators”.

The compensation package would offer existing or former staff who worked for the British for more than 12 months either a cash payment to help them to resettle in Iraq or the region, or the chance to move to Britain.

But Mark Brockway, a former British soldier who served in Basra and has campaigned for the rights of Iraqi staff, said that many Iraqis at risk would “fall down the cracks” of the offer.

Chris Bryant, a Labour MP, said that the Government had been “very ungenerous” at asylum requests from Iraq.

Lynne Featherstone, a Liberal Democrat MP, has tabled an early day motion in the Commons calling on the Prime Minister to “meet Britain’s moral obligations” by offering resettlement to all Iraqis who are in danger because of their work for the British.

The perceived shortcomings of the Government offer are:

Too little: The average compensation package envisaged for Iraqis would amount to a few thousand pounds. This will not cover the cost of moving a family from Iraq and resettling in a neighbouring country such as Jordan or Syria.

Too late: in the two months it has taken the Government to make its decision Iraqi staff have been killed, kidnapped and forced to flee the country. Final details of the package have still not been completed.

Too slow: The asylum process could take months or years to complete for Iraqi employees. Under the current arrangement only 300 can be processed a year by the Home Office.

Too complicated: The Government’s proposal is complicated and bureaucratic. The Danes airlifted all their locally engaged staff and their families from Iraq in one decisive move.

Unfair: Iraqi interpreters often worked for six-month periods, the normal tour of duty of a British army battalion in Iraq. Many have no written records of their service. Under the present arrangements many Iraqis who deserve help and are at risk will receive nothing.

Times Recommends

• Rio Tinto four held as China prepares case
• Diplomats must keep heads down and trousers up
• When in Rome should one make like Berlusconi?