News International pay Dowler family £2m

News International has agreed to pay £2 million to the family of the murdered school girl, Milly Dowler - as compensation for the hacking of her phone.

Rupert Murdoch, the chief executive of News International's parent company, News Corp, says he hopes his personal donation of £1 million, to charities chosen by the Dowler family, will "underscore his regret" at what he called the "abhorrent" phone hacking by the News of the World.

Mark Lewis, the lawyer representing the Dowlers, said the phone hacking scandal had been very costly for News International.