David Cameron has signalled his strong support for a referral fee ban.

During Prime Minister’s question time yesterday, he said that he is “very sympathetic” to a referral fee ban.

He said: “My hon. Friend makes a very good point about the problem of referral fees that are driving up the cost of insurance for many people. Mr Straw has made some very powerful points about this. There was a report to the government calling for referral fees to be banned.

“I am very sympathetic to this, and I know my right hon. and learned Friend the Justice Secretary is too, and we hope to make some progress on this issue.”

He was responding to a question by Bradford Liberal Democrat MP David Ward, who said: “There are now young people in Bradford being quoted, without convictions or claims, £53,000 to insure their first car. These ridiculous premiums are being driven by insurance companies selling fresh details to personal injury lawyers.”

Cameron’s comments follow those last week by justice minister Lord McNally when he also expressed sympathy for a referral fee ban.