TWO brothers who started the £7 million blaze which burnt down Blackpool's Devonshire Road School will not have to pay a penny towards the cost of the crime.

The 10 and 12-year-olds will instead face a Referral Order after admitting arson and, along with an 11-year-old Blackpool boy, burglary.

The referral order will see them supervised by a young offender panel, consisting of trained volunteers, who will discuss the boys' crimes, offer them the opportunity to do work in the community and discuss the effects of their crimes with its victims. They may also be asked to write a letter of apology, but no compensation will be paid as the pair's family is on benefits.

Prosecuting, Kirtsten McAteer, said the school's owner, Blackpool Borough Council, was asking for £5.14 million in compensation.

"Without wishing to be flippant, a colleague and myself calculated it would take 40,000 years to pay that off if someone were on benefits," she added.

Defence lawyer, Hugh Pond, told Blackpool Youth Court on Tuesday that, although the boys had started several small fires using paper and a cigarette lighter, they had desperately tried to put them out with fire extinguishers and by stamping on the flames. The 12-year-old, from Blackpool and the 10-year-old, who lives in Preston, were given nine-month orders. The 11-year-old, from Blackpool, receives a three month order.

The fire, on August 23 last year, was fought by firefighters from across Lancashire.

It cost £150,000 to relocate pupils to the old Boundary School on Grange Park, which had been due for demolition, and transport for the 300 pupils cost a further £150,000. Replacing equipment destroyed in the blaze would cost a further £750,000 .

Mr Pond, defending the brothers, said: "They were amazed to see the fire take hold. They did not anticipate such a catastrophic result. They are very, very sorry for what happened."

Steven Duffy, defending the 11-year-old, said his client had committed burglary with the brothers, but played no part in starting the fires.

He and his family went voluntarily to the police and told them what he knew about the fire.

Presiding magistrate, Mrs Jean Adams, told the brothers: "Your game turned out to have disastrous consequences. Do not play with fire again."

A DECISION is expected next month on whether the listed Victorian school is to be rebuilt from scratch or restored to its original state.

Blackpool Council's executive is expected to make its decision at a meeting on March 3. Complete restoration has been estimated at £7 million while rebuilding would cost around £5 million.

Cllr Ivan Taylor, education portfolio holder, said: "The children are still at Grange Park at the old Boundary School. It is working well and we are very pleased with the way the teachers, parents and pupils have responded, but we are conscious of the need to get them back to where they belong and we are actively pursuing the options available to us.

"It has taken time for us to get where we are. Obviously having to deal with insurance companies is never a quick process, but we are getting there."

Mr Taylor said the council was able to fund whichever option the executive decided on.