Cameron made sure he sorted his mates out who have shares in VW and said that the tax bracket wont increase. This obviously might change especially from environmental lobying groups if the emissions cant not be fixed.
They obviously have to come up with a 'fix', but they have achieve this by not lowering the power output of the car and keeping the emissions what they initially stated them t to be at...which if they had mastered that in the first instance, there wouldnt be this problem. So I am keen to see what they are going to do.
Compensation should definitely be sought. A few big legal companies are already pursing it, I suggest waiting until VW release the 'offer' to owners, as if you register with these legal companies to early, you could end up paying them a percentage when you dont need to.