THE family of a 10-year-old girl left with cerebral palsy after complications during her birth at is set to receive a £9.29m payout to assist with her future care.

Lawyers acting for the youngster secured the settlement from East Lancashire Hospitals NHS Trust in the High Court after problems with her delivery at Royal Blackburn Hospital.

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In a landmark case her barrister, Michael Redfern QC, was able to argue, that under new compensation rules an original agreement of £3.77million should be increased to meet the care needs of the girl, who cannot be named for legal reasons.

Her solicitor Leonie Millard, of Accrington-based firm Forbes, said: “The settlement vastly improves the long term future financial ability to meet her needs for the rest of her life, which is expected to be long.

“Her parents are comforted to know that there is funding to ensure that her needs are properly met when they are no longer around.”

Mr Redfern QC welcomed the compensation changes, announced by Lord Chancellor Liz Truss in late February, that has resulted in the enhanced payout.

He added: “The only person to benefit from the new discount rate is the claimant. It has no impact on legal costs.”

Under the terms of the settlement, according to Mr Redfern’s chambers, St John’s Buildings in Manchester, the girl’s family will receive a lump sum which increased from £1.32million to £2.21million.

Annual payments of £50,000 will be delivered, until the girl is aged 19, and there will then be yearly advancements of £73,500 for the rest of her natural life.

A spokesman for ELHT said: “The trust has noted the court’s approval of the settlement agreed between the parties. The trust wish the family well for the future.”

The decision by the Lord Chancellor is expected to have a dramatic effect on similar claims involving cerebral palsy and other brain injuries in future and the move has been heavily criticised by the insurance industry.

Huw Evans, director general of the Association of British Insurers, said the move was a “crazy decision” which would have a harmful impact on liability and motor insurance premiums.

He said: “We estimate that up to 36 million individual and business motor insurance policies could be affected in order to over-compensate a few thousand claimants a year.

“To make such a significant change to the rate using a broken formula is reckless in the extreme, and shows an utter disregard for the impact this will have on consumers, businesses and the wider operation of the insurance market.”