A LITTLE boy continued his brave battle for life last night after suffering horrific burns in a house fire that killed his brother.

Four-year-old Stephen Peel was set to undergo skin graft surgery yesterday afternoon in Newcastle General Hospital.

His half-brother Carl Taylor perished in the blaze, which gutted the little boys' bedroom in their grandparents' home in Wood Vue, Spennymoor, on Monday night.

Despite several attempts to save the youngsters, rescuers were beaten back by intense heat and thick smoke.

His devoted grandparents John and Christine Taylor, both in their early forties, and his mother Tracy Taylor, 27, are said to be absolutely devastated by the tragedy that happened on the day Carl celebrated his seventh birthday.

The youngsters were being looked after by their uncles John, 21, Lee, 18, Shaun, 11 and aunt Donna, 17, when the fire broke out. They too are said to be inconsolable.

Neighbour John Sugden, 39, carried Stephen to safety, but has been unable to talk about the tragedy, distraught at being unable to reach Carl.

The boys' three-year-old half sister Lauren Wilkinson, was sitting safely downstairs in a high chair, while the tragedy unfolded.

She was treated in hospital for the effects of smoke, but was released shortly afterwards.

Police and firefighters are still investigating the cause of the blaze, but are not treating it as suspicious.

A post-mortem examination has been carried out and the opening inquest into the King Street School pupil's death will start at 2.30pm, on Tuesday, at Bishop Auckland Magistrates Court.

Family friend Janette Mole, 45, said after the tragedy: "The bairns are everything to Christine and John.

"They are loving grandparents and this will destroy them.

"Carl was a smashing little lad and it is awful that he has been taken so young."