Victory for 7/7 victims

The Government offers an extra £2.5m to those injured and bereaved by July bombs

Victims of the 7 July bombings are to receive millions of pounds extra in compensation after a deal between Tony Blair and Gordon Brown to make additional payments to the injured and bereaved.

A deal, worth an estimated £2.5m, has been reached by ministers following sharp criticism that the Government had failed to provide enough financial help to people maimed in the attacks.

Those injured in the terrorist attacks, and relatives of those who lost their lives, are to be given extra handouts following a public outcry. The cash, approved by John Reid, the new Home Secretary, is expected to reach them later this year.

Up to £5m has been donated by the public, after a charitable fund was set up by Ken Livingstone and the Red Cross. The money has been distributed to 230 people and families injured or bereaved by the blasts.

But the main source of compensation for victims comes from the Government's Criminal Injuries Compensation Scheme. The scheme was sharply criticised after the bombings for its failure to distribute money swiftly enough. In April a woman who lost both legs in the bombings nine months ago had still not received her compensation, despite being awarded £110,000.

A petition was delivered to Downing Street in October calling for the payments to be made more swiftly. Payments vary based on the severity of the injury. The fund has received at least 500 applications and paid out £2m so far.

Earlier this month Mr Blair gave comfort to the victims of the terrorist atrocity and hinted at extra financial help. "The nature of the attacks on 7 July were wholly exceptional. For that reason we have been looking to see what more we can do in terms of additional support for those victims and families, and I hope the Home Secretary will be in a position to announce details of that shortly," the Prime Minister said.

The Independent on Sunday has learned that a deal has been struck and is likely to be announced this week. One senior government source told the IoS: "The Home Secretary and Tessa Jowell, who is the victims minister for 7 July, as a result of looking at this have got extra compensation for the 7/7 victims. It is around £2.5m extra. It's for people who were injured and those bereaved." Mr Blair and Mr Brown are believed to have approved the extra cash payouts last week.

But the mother of one of the 7 July bombing victims last night said the increase was not good enough. Phil Beer, 22, was on the Piccadilly line train that was bombed outside King's Cross. His mother, Kim, last night said the Government had "insulted the memories" of the victims of the 7 July bombings by not offering enough compensation in the first place.

Mrs Beer, who is separated from Phil's father, said neither of them had yet received any money. "We were told we would get £5,500 each but we have received nothing. I've only just got the paperwork through. The Government hasn't given the survivors or the families of the victims an ounce of respect. You don't put people through this. The last thing we want to keep doing is filling out forms. It has crucified me and my kids."

Phil Beer, a hairdresser from Borehamwood, Hertfordshire, was on his way to work at a salon in Knightsbridge when the carriage he was travelling in was blown up. His family searched hospitals for three days until his death was confirmed.

"It is like it happened just yesterday," said Mrs Beer. "It is just horrendous. The day he died is the day our lives stopped. Time is not a great healer - it's actually worse now. He ain't here no more. It's bad enough getting by day by day without all this. No amount of money will ever compensate for what we've lost."

Paul Dadge, a former firefighter who helped a woman with serious burns to escape from Edgware Road, welcomed the increase. The photograph of Mr Dadge with a protective arm around Davinia Turrell, who was wearing a face mask, became one of the iconic images of the terror attacks.

"A lot of people were seriously maimed, especially at Edgware Road where I was," said Mr Dadge. "Any increase in compensation is highly commendable, but they need that compensation now. There is a lot of red tape involved."