A BOY has lost his battle to live, two months after he suffered horrific burns in a fire that claimed the life of his half-brother.

Four-year-old Stephen Peel had been desperately clinging on at Newcastle General Hospital since fire gutted the bedroom he shared with Carl Taylor in Spennymoor, County Durham, on June 18.

Police believe he and Carl were playing with matches when the blaze started in the early evening.

Yesterday afternoon, the agonising decision was taken to switch off Stephen's life support machine.

Both boys had been living with their grandparents, John and Christine Taylor, when tragedy struck. Shortly before the blaze, the youngsters had been enjoying Carl's seventh birthday celebrations.

Mr and Mrs Taylor had gone out for the evening leaving their 21-year-old son, John, and his girlfriend babysitting along with their two other sons, Lee, 18, Shaun, 11 and daughter Donna, 17.

Moments later the devoted grandparents, who were celebrating their 25th wedding anniversary, raced back from Spennymoor Workmen's Club and had to be held back as the flames took hold.

The boys' three-year-old half sister, Lauren Wilkinson, was found in the living room of the three-bedroomed house and rescued by firefighters. She was treated for smoke inhalation and later released from hospital.

The children's mother, Tracey Taylor, is believed to live nearby but was not present when the fire took place.

The family have been too upset to talk about the tragedy, which shattered the close-knit Spennymoor community.

At the time, neighbour John Sugden, 39, fought through smoke to reach Stephen, carrying him to safety.