Matt Hancock, the Health and Social Care Secretary made the announcement as he fronted the daily Downing Street press conference to reveal that 82 NHS workers and 16 social care staff had died so far.
Mr Hancock said: 'I feel a deep personal sense of duty that we must care for their loved ones.
'Today, I am able to announce that the Government is setting up a life assurance scheme for NHS and social care frontline colleagues.
'Families of staff who die from coronavirus in the course of their essential frontline work will receive a £60,000 payment.
'Of course, nothing replaces the loss of a loved one but we want to do everything we can to support families who are dealing with this grief.'
There are more than 150,000 confirmed coronavirus cases in the UK, with over 20,000 deaths from the virus.
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