July 7 attacks: Families facing new financial hurdle over bomb hearing case

Representatives of Home Secretary Theresa May will appear at the High Court next Thursday as they seek a judicial review of a decision by the coroner, Lady Justice Hallett, not to allow closed evidence.

One group of families whose loved ones were killed in the 2005 London public transport atrocities said the Legal Services Commission has told them they do not qualify for legal aid.

Relatives faced a similar battle for funding at the inquests themselves after the previous Government invited applications and turned them down, before a decision was made in their favour.

Solicitor Clifford Tibber, who represents the families of six victims, said Mrs May has refused to rule out claiming costs against relatives if her application is successful.

He said: "It is a ridiculous system. The families are funded to be represented at the inquests but as soon as there is a challenge to the coroner's ruling they are left high and dry."

Graham Foulkes, whose 22-year-old son David was killed at Edgware Road, said: "We are already suffering considerable distress and pain going through the inquests. That distress has been added to by the Home Secretary's appeal which we find very hurtful."

A Legal Services Commission spokesman said: "By law, the Legal Services Commission cannot waive the financial eligibility and legal merits tests which we must apply to all civil legal aid applications."