A ban on referral fees has edged one step closer with David Cameron admitting he is ‘sympathetic’ to the idea this week.

The prime minister was drawn into the debate on the fees by a question from Liberal Democrat MP David Ward during PMQs on Wednesday.

Ward said there were young drivers in his Bradford constituency being quoted up to £53,000 to insure their first car, even if they had no convictions or claims.

And he laid the blame for ‘ridiculous’ premiums with insurance companies selling fresh details to personal injury lawyers.

In response, Cameron said former justice secretary Jack Straw had made a very powerful case last month for an outright ban on referral fees.

The prime minister added: ‘There was a report to the government calling for referral fees to be banned. I am very sympathetic to this, and I know… the justice secretary is too, and we hope to make some progress.’

A ban on referral fees was one of the recommendations made by Lord Justice Jackson last year in his blueprint for litigation reform.

Last week justice minister Lord McNally also indicated he was ‘sympathetic’ towards a ban.

The justice minister Jonathan Djanogly has said the government will analyse the findings of a report by the Legal Services Board before deciding what action to take on referral fees, adding the department is to ‘look carefully’ at all issues.

The Law Society has written to justice secretary Kenneth Clarke to formally urge him to act over the fees, calling for a ban on a system that is ‘ethically wrong, treats accident victims as commodities for sale and adds no value to the justice system’.