Lord Irvine: Seeking extra-statutory powers

He is also to publish consultation proposals in the autumn setting out the criteria for judging applications for the assistance.

Michael Gallagher, whose son Aiden was among those killed in Omagh, has welcomed the announcement but said all the families should be entitled to legal aid.

Speaking on Tuesday, Mr Gallagher said: "It is a limited concession. It only applies to those who are entitled to legal aid. We feel it should be extended to everybody.

"Imagine the costs involved for the families not entitled to assistance.

"Costs to hire lawyers could amount to between �300 and �500 a day and that could mean a huge sum over a period of three to four weeks.

"The families will be at a low ebb and some will find the environment of a coroner's court intimidating. That is already a lot to bear.

Michael Gallagher: Welcomed the announcement

"This announcement is good news, but limited good news. The bombers did not discriminate, so why, in these circumstances, should the government."

The inquest into the deaths of the Omagh victims is scheduled to begin in the County Tyrone town on 6 September and is expected to last up to four weeks.

David Leck, the minister responsible for Northern Ireland's courts, has written to each of the victims' families to inform them of the decision.

Some of the families live in England, the Republic of Ireland and Spain.

More than 2,000 people have been interviewed and over 3,000 statements taken by police investigating the bombing.

Nearly 80 suspects were questioned on both sides of the border.