Rover workers received redundancy packages totalling £ 20 million within a fortnight of Longbridge closing, Trade and Industry Secretary Patricia Hewitt has revealed.
The average payment was £5,000, with more money still to come.
And the Government has extended the employment advice available to former Rover staff to include their wives and husbands, she said.
Ms Hewitt was visiting the marginal constituency of Redditch in Worcestershire, where Labour candidate Jacqui Smith, a Trade Minister, is fighting to hang on to her seat.
The main challenger is Conservative candidate Karen Lumley, in what is believed to be a very close contest.
The Conservatives could win the General Election if they won seats like Redditch, despite opinion polls showing that Labour was well ahead nationally, said Ms Hewitt.
Speaking to The Birmingham Post, she said: "We have now paid out over £20 million in redundancy payments. I believe we have managed to pay everybody who has claimed their redundancy payments.
"The officials have really worked hard to make sure everybody gets their payments within a fortnight."
Redundancy payments usually took around six weeks to arrive, she said.
" When I met Rover workers and their families, one of the things they said to me was that they needed that money as soon as possible, to ensure they could afford mortgage payments and so on.
"We now believe the total that will be paid out will be around £50 million, a little higher than the £40 million we originally expected."
This would include payment in lieu of notice and what is called a protective award, which is compensation for the lack of consultation over the redundancies.
Despite the many former Rover workers living in Redditch, Ms Hewitt said she did not think Longbridge's closure would affect the election result.
"It is a huge issue for the people affected and their families. But what I have been finding is most people understand that Government did everything possible to stop this happening.
"And we are also doing everything we possible can to help the workers that are directly affected, and their families."
This included providing free business advice to anyone who wanted to set up their own business, she said.
Ms Hewitt said she faced a tough battle in her own constituency of Leicester West, although in 2001 she gained a majority of 9,639 against the Conservative candidate.
She said: "This election is not predictable. In every marginal seat, even my own constituency, it is very close."