A PERMANENT memorial to those killed in the Manchester terror attack will be created.

And their grief-stricken families are eligible for up to £250,000 each from the We Love Manchester Emergency Fund.

Plans to create the lasting tribute have been announced by Manchester City Council.

But a spokesman stressed that a separate charitable fund has been established to pay for it, and that no money will be diverted from the existing We Love Manchester Emergency Fund.

John Atkinson, aged 28, from Radcliffe and Tottington High School pupil Olivia Campbell-Hardy, aged 15, from Bury, were among the 22 who died in the May 22 attack at the Manchester Arena.

Concert-goers had just finishing watching a performance by Ariana Grande.

The families of those killed have already been able to claim £70,000 from the We Love Manchester Emergency Fund.

Now they will be eligible to receive a further £180,000 following a decision by the charity’s trustees.

The payments will ensure they benefit from the outpouring of worldwide public support following the attack.

The body administering the new tribute fund, which meets for the first time next month, will work closely with the families of those killed in the attack and others affected by it.

A spokesman said their involvement will be "crucial" in determining the form and location of the memorials.

The We Love Manchester Emergency Fund has currently raised £18m, with donations still coming in.

Trustees decide how and when to distribute the money, including making awards to those who have been seriously injured by the attack.

Cllr Sue Murphy, chair of the trustees of the fund, said: “The city and the world responded with such extreme kindness, generosity and solidarity in the aftermath of the Manchester Arena attack.

“Thanks to this we have raised more than £18m and we were conscious that we had to get some of this swiftly to those with immediate needs.

“We have therefore given a around third of the total to the bereaved families and £3.5m to those who were hospitalised after the attack. .

“We will now spend some time looking at how we will distribute the rest of the funds.”