The parents of the youngest person to die in the Manchester Arena bombing said the government’s £11,000 compensation offer was a “complete insult”.
Saffie Roussos, eight, was among 22 people killed outside an Ariana Grande concert in May 2017.
Lisa and Andrew Roussos are launching a charity to help support families affected by terror attacks.
The BBC has approached the Ministry of Justice for a comment.
Saffie, from Leyland, Lancashire, was at the concert with her mother, Lisa, and sister, Ashlee Bromwich, when Salman Abedi detonated a device on 22 May.
Mrs Roussos is taking part in the Great Manchester Run on Sunday to launch charity MCR 22 after overcoming injuries she suffered in the blast and learning to walk again.
She spent six weeks in a coma and only learned of her daughter’s death when she regained consciousness.
“I said ‘she’s gone isn’t she?’,” said Mrs Roussos, in her first broadcast interview.
Saffie’s parents said the time had made no difference to their grief, with Mr Roussos adding they felt “like we’re stuck in 2017”.
The launch of the charity would mean that “something good has come out of something so awful,” said Mrs Roussos.
Memorial designs sought
Ideas are being sought for a permanent memorial to honour the victims of the Manchester Arena bombing.
A memorial is earmarked for a public space near Manchester Cathedral, close to the scene of the attack.
Applications have opened for designers to submit ideas for the “focal point” of the space.