British families of World Trade Centre victims who saw the attacks unfold on television could receive compensation for their trauma.
The criminal injuries compensation authority usually only compensates people who see a family member killed or injured on British soil.
But it has decided they could be eligible for compensation after witnessing the atrocities live on television.
The Sunday Telegraph says they could receive payouts of between £1,000 and £5,000. It believes the average payout could be £2,000.
Edward McKeown, the authority's deputy chief executive, said: "We have been aware that changes in communication technology, such as the introduction of live news channels, give an immediacy that means someone who sees or experiences the incident in the United Kingdom might be eligible to meet the criteria, which are that they are 'present and witness it'.
"The recent and terrible events in New York provide an exceptional example of circumstances which for the first time are more likely than any to give rise to eligibility.
"There is no doubt that someone could have seen the second plane crashing into a building where a loved one was working, or have seen the towers collapse. The victim may even have phoned them before the collapse.
"All these circumstances suggest to us that this is the kind of situation which would for the first time suggest the loved one fulfilled the criteria of being 'present and witnessing' the disaster."
Norman Thompson, from Sheffield, who lost his son Nigel in the attack, said: "Sadly, I watched the North Tower, where Nigel was, collapse live on television. It wasn't something you could really avoid. I think it is to be welcomed that the Government is recognising the pain of watching it."