Andrew Evans, chair of the campaign group Tainted Blood, told the hearing many victims and their families had been left feeling "betrayed and disappointed".
"People have given up on any expectation of receiving anything," he said.
"They have lost all hope of ever getting justice and we can't be doing this for much longer."
Other witnesses criticised the way in which individuals were being contacted and "invited" to come forward to claim final compensation, describing it as "waiting for your lottery ticket to come up".
Gary Webster, a haemophiliac who was infected with HIV and hepatitis C when a pupil at Treloar's School in Hampshire in the 1970s and 80s, said that "[some] people will not get their compensation and a lot of claims will die with them."
"It's just too slow and people won't get the justice they deserve," he added.
Under the current rules, if someone infected with HIV or hepatitis B or C dies before receiving full compensation, then any final award can be passed on to their relatives through their estate.
But compensation can also be claimed by those affected by the scandal – a partner, sibling or parent of a child, for example – for the separate impact on their lives.
And if they die before that compensation is agreed, then their claim will die with them and cannot be passed on.
In questioning later in the day, Mr Thomas-Symonds, who leads on the response for the government, said he was "restless for further progress on payments".
The Infected Blood Compensation Authority (IBCA), an independent body set up to pay victims of the scandal, has said it expects the "bulk" of awards to be made to infected survivors by the end of 2027, with most of those affected, such as family members and carers, paid by the end of 2029.
Mr Thomas-Symonds said he regarded that timeline as a "backstop" rather than a target to work towards.
"The logic for that is there may be other people who have not yet come forward at this stage [to claim]," he said.
"I've never been anything but clear they are absolute backstops and I expect these payments to speed up [in the future]."