The new laws will also allow some infected individuals to claim supplementary payments if extra evidence is provided.
Those who can show they were the victims of unethical research, for example, can receive an extra £10,000.
Those with the blood disorder haemophilia, who contracted HIV or hepatitis C as children while at Treloar's school in Hampshire, will receive £15,000.
The draft laws must be debated and approved by both houses of Parliament before being passed, which the government expects to happen by the end of March.
Groups representing victims and their families have already expressed concern about the length of time it has taken for the scheme to start operating.
So far, the Infected Blood Compensation Authority (IBCA), which administers the payments, has invited 113 infected individuals to claim, and made 23 offers of compensation.
Lawyer Des Collins, who is advising thousands of families, said the scheme is not yet able to cope with "anywhere near" the volume of applications it should be processing, and warned "many may die" while they wait.
IBCA said it was "starting small" because of the complexity of some cases, but pledged the process would speed up from April this year.