The families of those killed in the Manchester Arena terror attack are to receive £250,000 each, after more than £15m was donated by the public to the We Love Manchester Fund.
Twenty-two people were killed and scores injured when a bomb exploded after an Ariana Grande concert in May.
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The Manchester Evening News reports that those who were injured and spent at least one night in hospital will receive money, ranging from £3,500 to £60,000 each.
Murphy said she had been assured by the Department of Work and Pensions that anyone who received money will not have their benefits cut but criticised the government for failing to pledge to cover the cost of administering the fund, estimated at around £450,000 or five per cent of its total value.
"We believe that the members of the public who generously donated to the We Love Manchester appeal want to see their money to directly to the victims," she said.
Last month, The Guardian reported that the government had yet to provide any financial help to victims of the bombing, "despite the city requesting money at the highest level in the immediate aftermath of the tragedy".
The paper said there was "frustration" inside Manchester City Council that the government has paid out quickly to help those affected by the Grenfell Tower fire but has not done the same for Manchester.
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