NATALIE Knighting's six-month prison sentence following a false rape claim has highlighted a growing problem facing police and those accused of abuse.

Knighting, 20, conned authorities out of £7,500 after telling police she was raped by a tramp on her way home from a funfair in Newcastle four years ago.

She led police on a wild goose chase with detailed descriptions of the alleged rapist before applying to the Criminal Injuries Compensation Board in July 1999.

Now campaign groups strongly feel that the lure of compensation for life-affecting incidents may also have thrown doubt over the legitimacy of some child abuse allegations.

Both Action Against False Allegations of Abuse (AAFAA) and Falsely Accused Carers and Teachers (FACT) believe the incentive of compensation may have proved too great for some former care home residents contacted during Northumbria Police's child abuse investigation.

AAFAA spokesperson said: "I do not think people realised the impact of compensation. It is something that has grown over the years.

"It seems ludicrous that people with a criminal bent would see it as a way to make money. There are people that did bad things, but the whole investigation escalated out of control."

The action groups do not stand alone. Legal representatives working at the heart of defence teams in abuse cases see the search for compensation as a problem.

Newcastle legal executive Gill Rutherford said: "If you dangle a carrot in front of a donkey then it moves. In some cases maybe that is what has gone on here.

"For anybody who has a case and wants to bring someone to justice, justice is the priority. Secondly, comes the compensation. I think the priority has been lost. There is too much talk about compensation."

Less than three years ago, Sunderland City Council faced the threat of massive compensation claims from more than 16 former residents who were mounting action over allegations of physical and sexual abuse at children's homes in the area