Queensland has become the third state to commit to a national redress scheme for survivors of sexual abuse in government-run institutions.

The state announced it would make a $550 million contribution to the scheme for people who were abused in care.

Victoria and New South Wales have already signed up, but Queensland had delayed committing because it already had an earlier scheme in place.

About 5,000 Queenslanders will be eligible for compensation, but their payments will be capped at $150,000.

The Federal Government also has a $150,000 cap, despite the inquiry that led to the creation of the redress scheme recommending a cap of $200,000.

The Catholic Archdiocese of Brisbane and the Anglican Church Southern Queensland (ACSQ) have welcomed the State Government's decision to opt-in.

However, critics say thousands more people would be eligible for compensation if the churches and other private institutions signed up too.

Spokespeople for both religious bodies have suggested they will join in the future.