Germany has agreed to offer a new compensation deal to Holocaust survivors who spent time in ghettos and in hiding during the Second World War.

Thousands of survivors had been turned down for benefits because they had been in ghettos or in hiding for less than 18 months. As of January 1 2012, Germany will change the eligibility period to 12 months.

As a result, 8,000 new beneficiaries, who have never been compensated, will reportedly receive around €30,000 (£25,700) each, according to the Conference of Jewish Material Claims Against Germany.

Other eligibility rule changes mean that Germany will pay a total of 16,000 new survivor pensions. The entire payment is expected to total €485 million (£416 million) over the coming decade.

Another group of survivors expected to benefit are those aged 75 and over who were in a ghetto for less than 12 months but for at least three months. From January, they will be entitled to a monthly pension of between €240 (£206) and €200 (£172).