Published Thursday, 14 February 2013
Twenty-six people were shot in the Bogside on Bloody Sunday, 30 January 1972. (© Pacemaker)
It is believed £50,000 is on offer for each person killed during the civil rights march in Londonderry in 1972.
Kate Nash's brother William was killed and her father Alex was injured when paratroopers opened fire on innocent people in the city more than 40 years ago.
"My brother cannot be replaced and all the money in the world won't bring him back," she said.
Thirteen people who were seriously injured are also expected to be awarded £50,000 under the payout. Ms Nash said she was "outraged" at that decision.
"How do they pick out the seriously injured? My father recovered, he was shot through the arm and the side. My father was in a bunker watching his son die.
"How in terms of compensation could you ever make up for that?"
Solicitors working on behalf of the families of Bloody Sunday victims said negotiations between the MoD and legal representatives are continuing.
Many of the relatives are represented by Belfast-based firm Madden and Finucane.
"The contents of those negotiations shall remain confidential between the families of those murdered and the wounded whom we represent, and the MoD," added a spokesman.
East Londonderry MP Gregory Campbell said victims deserve payouts, but called for similar investigations into other attacks.
"We have yet another example coming forward where compensation will be made to families in one particular incident whilst there are countless others whose relatives were maimed or murdered yet have received either token amounts or nothing," said the DUP representative.
"The family of anyone murdered deserves to be compensated, but with the issue of Bloody Sunday there must be a demonstration that everything which occurred will be investigated and not this partisan and unacceptable approach."
Police are carrying out a murder investigation into the shootings, following the Saville Inquiry findings that paratroopers had no justification for opening fire and killing 13 civilians.
The report, which cost almost £200m and took 12 years to complete, found none of the victims were armed and soldiers shot without warning.
It was heavily critical of the army and following its publication in June 2010, Prime Minister David Cameron apologised to families for the "unjustified and unjustifiable" killings.