Katie Phillips, eight, was awarded �2.125m on Monday by the Lincolnshire Health Authority - which employed Allitt - following an eight-year battle by her parents.

Beverley Allitt killed four children

Her twin sister, Becky, was killed by "Angel of Death" Allitt while she worked as a nurse at Grantham Hospital.

Katie was two months old when Beverley Allitt injected her with insulin and potassium in 1991.

She now suffers from permanent brain damage, partial paralysis and partial blindness. She requires round-the-clock care from her parents.

The twins were born prematurely at Nottingham General Hospital in January 1991 and were transferred to Grantham Hospital, where Allitt worked on the maternity ward.

The �2.125m deal comes five months after Katie's family rejected a �1.5m offer from Lincolnshire Health Authority.

Her parents Peter and Sue Phillips, of Grantham, said the previous offer was not enough.

At a special hearing behind closed doors at Lincoln Crown Court, the two parties ended their legal battle.

The authority was not asked to accept liability for Katie's injuries but admitted she was entitled to compensation.

The money will be administered by the Court of Protection and will be used to pay for treatment and equipment for the rest of Katie's life.

Horrific and evil events

In a statement, the family solicitor Paul Paxton said: "The sum involved is substantial, but money can never compensate for the horrific and evil events that led to Katie suffering catastrophic injuries."

Mr Paxton said the settlement should ensure a secure financial future for Katie, and enhance the quality of her life as far as possible.

However, the family say they are still angry that Allitt was allowed to continue working undetected at Grantham Hospital for so long.

Speaking outside Lincoln Crown Court after the 20-minute hearing, Mrs Phillips said: "The whole affair has taken a heavy toll on the family, but we now believe we can move on.

"We have had tremendous support from the public throughout this and now we can get on with our lives.

"But I am still angry that Allitt was allowed to continue what she was doing without being detected."

Future care assured

Jane Crofts, of Lincolnshire Health Authority, said: "We hope that this sees a conclusion on this claim.

"Katie's future care is now assured and there has been a lot of hard work by both sides. This has been reflected in the interim payments which have been made since 1993."

Allitt, who suffered from the personality disorder Munchausen Syndrome by Proxy, killed four children and injured nine others between 1991 and 1993.

She is serving 13 life sentences, and is being held at the top-security prison hospital Rampton in Nottinghamshire.

People with Munchausen Syndrome by Proxy fake their own or others' illnesses in order to gain attention.