He disclosed that he has recently secured an agreement that Volkswagen will cover the £1.1m cost of vehicle emissions tests on other manufacturers conducted by the Government earlier this year.
The tests found that all of Britain’s most popular diesel cars exceed the legal limit for safe levels of pollution, with toxic emissions up to 14 times higher than claimed by manufacturers.
Mr Hayes told The Telegraph that the Government is prepared to take legal action against Volkswagen to secure compensation.
He said: “This payment [the £1.1m] is an important step on the road to getting VW to do what they should and a result of my fierce determination to do right by the motorist.
“There is this issue of compensation, we want to go further. We could of course take legal action, Volkswagen should do more for those people affected.
“The exact nature of the package is something that will have to be negotiated and discussed. People who have been taken for a ride should be recognised in the form of further action. The fact that they have paid this money is indicative that we are beginning to score runs.”