£2m for shot Iraqi boy, just £285,000 for a crippled Para

Diane Dernie, whose son was awarded only £285,000 despite losing both his legs in an Afghan landmine blast, said there is one rule for British troops and another for Iraqi civilians.

As the row deepened, the Tories said the case highlights how the Government has broken the "military covenant" and threatens to demoralise the armed forces.

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The boy is being paid by the Ministry of Defence for spinal injuries suffered when he was accidentally shot in 2003 by a soldier dropping his rifle.

It is claimed the huge payout could result in a flood of compensation claims from civilians in Iraq and Afghanistan.

Last night Mrs Dernie, of Doncaster, said: "It's not that we don't think that anyone deserves compensation if they are shot, but it's hard to see why the Ministry of Defence can give all this money to nonmilitary personnel yet doesn't see fit to look after its own.

"As time goes on, we at the sharp end can see how little the £285,000 will stretch.

"It all goes back to the same old story - there's money for civilian workers who threaten to sue, but for those in the armed forces injured, they try to get rid of them as quickly and as cheaply as they can."

The boy, then 13, who cannot be named for legal reasons, had befriended British soldiers guarding an outpost near Amara in southern Iraq in 2003.

Private Alex Johnston, of the King's Own Scottish Borderers, was chatting to the youngster when his weapon slipped and fired a bullet into the boy's spine.

Private Johnston gave first aid until a medic arrived.

The boy was taken to the UK for medical treatment, but remains wheelchair-bound.

The 20-year-old soldier was court martialled, fined £750, and ordered to pay £2,000 to his young victim.

He has since left the Army.

The Iraqi youth, now 17, made a ward of court to protect his identity, stayed in Britain and launched a personal injury claim against the MoD through the British courts, which has now been settled for the record amount.

It far exceeds the maximum £285,000 lump sum payable to British soldiers injured in the line of duty.

The MoD insisted yesterday that the £2million payout is a one-off.

A spokesman said: "It is not a precedent, it is an exceptional case.

"It is not expected that there are any other cases of such severity."

It also dwarfs payouts to other Iraqi civilians injured by British forces, whose grievances are normally settled in Iraq where the biggest compensation award so far is thought to be £24,000.

In total, £3.34million has been paid to Iraqi civilians since 2003 - of which £2million is to the Iraqi boy.

Last year, the Mail highlighted the case of Mr Parkinson, 23, who suffered 37 injuries including severe brain damage, speech loss and the loss of both legs.

Doctors said he was the most severely-wounded British soldier ever to survive.

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Lawyers believe he would have received £3million in a civil court case.

A fighting fund raised by Daily Mail readers is being used to challenge the rules.

Tory defence spokesman Dr Liam Fox said: "Policies need to be in place which better balance compensation between all parties involved.

"This is another example which shows that the military covenant is broken."

The MoD said the high payout reflects both the costs of caring for the boy for the rest of his life and the fact the MoD had accepted that the shot was a "negligent discharge".

A spokesman said: "This settlement follows a civil claim for negligence made through the High Court.

"This compensation payment cannot be compared like-for-like with the Armed Forces Compensation Scheme, which is a no-fault scheme which provides a lump sum up to a maximum of £285,000 and, for the most seriously injured, a guaranteed, tax-free, index-linked income for the rest of the claimant's life."