Scottish councils have paid out more than £1.5 million in compensation to child abuse victims in the last decade.

The victims were physically and sexually absued in local authority schools and childrens’ homes.

Dumfries and Galloway alone paid out £1 million to 50 victims at the Merkland Childrens’ Homes in Moffat.

Glasgow City made nine payments, between April 2008 and October last year, worth a total of £85,350 to victims including those from Kerelaw School, in Stevenston, North Ayrshire.

A former art teacher Matthew George from the secure unit was jailed for 10 years for physical and sexual assault.

The figures obtained under a Freedom of Information request by the Scotland on Sunday, show that Fife Council paid out £369,000 between October 2005 and December 2008.

Some of the payments related to victims of former care worker David Murphy, who was jailed in 2001 for the abuse of boys.

Susan O’Brien QC is about to undertake a four-year nationwide inquiry into child abuse with power to compel organisations and individuals to participate.

O’Brien, who headed up the inquiry into the failings which led to the 2001 death of Edinburgh baby Caleb Ness by his own father, will hear testimony from victims abused while in care.

Cases will include those from church-run homes and residential schools such as St Ninian’s in Gartmore, Stirlingshire.

Allegations dating from September 1964 will be examined from children’s homes run by charities Barnardo’s and Quarriers as well as council-run homes and residential schools.

There will also be evidence from children who were fostered.

One of the boldest moves is the proposed removal of Scotland’s strict three-year time bar rule which has prevented thousands getting justice in the civil courts, even when abusers were convicted.