OLDHAM Council has defended its decision to award £13,700 in compensation to a pupil who sliced off the top of a finger while swinging on a school security gate.

The incident was uncovered as part of a survey of schools by a national newspaper which revealed how pupils are cashing in on Britain’s compensation culture.

Oldham Council says compensation claims are investigated carefully and any payouts have to be approved by the courts.

Details of the incident are being kept secret as part of the settlement deal.

Cllr Kay Knox, cabinet member for children, young people and families, said: "In terms of any compensation awarded following an accident, I would like to reassure the public that the council carefully investigates each claim received, and that decisions are based on the merits of that claim.

"If it is considered that there is responsibility because of the particular circumstances, then the claim will be paid.  Equally if it is felt that the council does not have responsibility, then the claim will not be paid. All such compensation claims involving children have to receive the approval of the court, both in terms of whether the council is responsible, and in respect of the amount of compensation to be paid to the children."

A report into the 150 local education authorities in England highlighted a string of seemingly crazy claims for trips and slips which paid out almost £1.8m in the 2007-8 financial year for 399 claims.

The biggest single payout was by Bradford City Council for £48,808 when a pupil burned an arm on a radiator pipe.

Other claims saw trampolines blamed for nine accidents, including one in Wolverhampton where a pupil received £2,500 aftertrapping an arm, and Derby City Council which paid £500 to a pupil who fell off a space hopper toy.

Education experts have called for an end to the cash payments.

Campaign for Real Education chairman Nick Seaton said: "This sort of growing compensation culture is getting ridiculous. Unfortunately, whenever youngsters are playing games and sports, accidents do happen.

"Parents should not be encouraged or tempted to apply for compensation in cases where it’s fairly obvious that it’s simply an accident.  I suspect that in a lot of these claims local authorities just pay out without fighting them. It’s probably easier and quicker for them."