Arthur was abused as a child by his babysitter - but his claim for compensation was rejected. And he's not alone

Victims of grooming gangs and modern slavery are being denied compensation by a government scheme because of their criminal records, Sky News has learned.

Analysis of official figures by Sky News' Data & Forensics team shows more than 11,000 victims of crime over the past decade have been denied payouts because of their unspent convictions, including children.

The Criminal Injuries Compensation Authority can award money to victims of violent crime, including sexual abuse.

It is the only government compensation scheme for victims - for those unable to work due to injuries, the money can be vital.

But, if an applicant has a criminal record, they are automatically refused compensation with limited exceptions.

Those with unspent convictions - ones which will show on a criminal record until a certain amount of time has passed - sometimes receive reduced sums.

Sky News has found that at least 130 children with criminal records have received reduced awards over the last 10 years, including 50 victims of sex abuse, four victims of brain damage, and one child who lost sight in an eye.

This rule on unspent convictions is based on the idea that public funds should only compensate blameless victims of crime and not, for example, a gang member who was injured in a fight.

But many argue the policy punishes those who have been forced to offend by exploiters, as well as victims of child sexual abuse.

'I was frustrated that I wasn't being believed'

Arthur Sherry, 43, from Perranporth in Cornwall was regularly abused by his babysitter from the age of five, including suffering rape.

In 2008, he reported it to Devon and Cornwall Police, alongside two other victims. He alleges the police did not believe him, and charges were not brought against his abuser.

Arthur became angry and descended into addiction as a "coping mechanism", becoming suicidal, and was repeatedly arrested for minor offences, such as making false calls to the emergency services.

"I wasn't getting support from any agencies, and no one asked me, 'Why is this man ringing the emergency services all the time?'"

"It was a cry for help. I was frustrated that I wasn't being believed."

Eventually, Arthur's abuser, Shaun Burton, was convicted of multiple offences against children, including 11 counts of indecency with a child in relation to Mr Sherry.

But when Arthur, who suffers from complex PTSD, subsequently tried to make a claim through the Criminal Injuries Compensation Authority in 2013, it was rejected because of his criminal record and because he submitted his application beyond CICA's time limit.

He was not allowed to appeal the decision.

Many survivors of grooming gangs have criminal records due to being exploited and coerced.

While the government recently announced plans to disregard child prostitution convictions for these victims, many are urging authorities to go further and pardon all related offences.

Former victims' commissioner Dame Vera Baird said: "They were not exercising their own free will and voluntarily committing crime, so there should be a discretion to look at that and say, 'No, that wasn't their fault'.

"They should get compensation for all the evil that was done to them by that gang."

In 2022, the Independent Inquiry into Child Sexual Abuse recommended that the government amend the Criminal Injuries Compensation Scheme so that "applicants with unspent convictions are not automatically excluded where offences are likely to be linked to the circumstances of their sexual abuse as a child".

The government has refused to act on this recommendation.

However, Labour MP Sarah Champion has tabled an amendment to the upcoming Victims and Courts Bill, hoping to implement it, as well as widen eligibility to the scheme.

"Victims are seen as running a cannabis farm and get a conviction, before it actually turns out that they were a victim of modern slavery.

"These people, who are very clearly recognised as victims and survivors, aren't getting the money that's owed to them. The system is broken and the ministers need to get rid of it."

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A government spokesperson said: "Last year, more than £164m was paid out under the Criminal Injuries Compensation Scheme to victims, and we are going further by removing the time limit for civil personal injury claims and doubling Home Office funding for services supporting adult victims and survivors of child sexual abuse.

"Changes to the way we compensate victims have been considered by successive governments, and our priority must always be to treat all victims of violence equally."

Devon and Cornwall Police said: "Tackling sexual offending is a key priority for Devon & Cornwall Police and we are working hard to bring offenders to justice.

"We take reports of all sexual offences seriously and will carry out thorough investigations into reports, looking at all viable lines of enquiry."

(c) Sky News 2025: Arthur was abused as a child by his babysitter - but his claim for compensation was rejected. And he's not alone