The 19 families of UK children born with deformities caused by toxic dust from a former steelworks, have won an out-of-court settlement over compensation.

Last year a High Court judge said Corby Borough Council was negligent in its clean-up which allowed chemicals to affect pregnant women.

Poisonous dust released into the air was ‘capable’ of causing limb deformities, the court ruled.

Corby Borough Council has agreed to drop its challenge to the High Court ruling on negligence and instead will immediately pay compensation to the children without accepting liability in this case.

The financial terms of the settlement remain confidential and in the case of the younger children will require approval by the court.

The council’s chief executive Chris Mallender said the authority recognised ‘it made mistakes in its clean-up of the former British Steel site years ago and extends its deepest sympathy to the children and their families’. It reached an out-of-court settlement with the families.