SARA Payne is "absolutely devastated" by claims she was targeted by the News of the World, despite working with the newspaper to change the law after her daughter was murdered.

In a new twist on the phone hacking scandal, it is understood Mrs Payne’s mobile phone was given to her by the Sunday tabloid.

Last night there was widespread condemnation of the now-defunct newspaper’s tactics.

Tom Watson, the Labour MP who has campaigned against hacking, said the allegations marked a “new low”.

Mrs Payne even wrote a tribute to the newspaper for its last edition earlier this month in which she praised the work it had done on Sarah’s Law, which allows communities to be told of convicted child sex offenders in their area.

Mrs Payne’s involvement with the paper came after her eight-year-old daughter, Sarah, was abducted and murdered in July 2000. She was killed by a paedophile and her murder led to a high-profile campaign for new legislation, championed by former News of the World editor Rebekah Brooks.

It is understood police had already reassured Mrs Payne her name was not on the list drawn up by Glenn Mulcaire, the private investigator at the centre of the allegations. However, they approached her earlier this week to tell her they had found her details as part of their investigations.

In a statement, her charity said: “Sara is absolutely devastated by this news. We are all deeply disappointed and are just working to get her through it.”

Over the course of the campaign Mrs Payne and Mrs Brooks are understood to have become close, even socialising together.

In a statement, Mrs Brooks, who was arrested by police in connection with the phone hacking inquiries earlier this month, said: “These allegations are abhorrent and particularly upsetting as Sara Payne is a dear friend. The idea that anyone on the newspaper knew that Sara or the campaign team were targeted by Mr Mulcaire is unthinkable.

“The idea of her being targeted is beyond my comprehension.

“It is imperative for Sara and the other victims of crime that these allegations are investigated and those culpable brought to justice.”

She also denied she had bought the mobile phone for Mrs Payne herself as a gift and said that it had been provided by the News of the World as part of the ongoing campaign.

Earlier this month it was revealed that police believe the phone of Milly Dowler, another murdered schoolgirl, was also targeted. Senior executives, including News Corp boss Rupert Murdoch, his son James and Mrs Brooks, were hauled in front of MPs to explain their role in the scandal. The Commons Select Committee will meet today to discuss its next step, following allegations James Murdoch misled them in his evidence.

Meanwhile, it emerged last night that Mr Murdoch Jr had received the unanimous support of the BSkyB Board.

Don Foster, the LibDem MP, called on board members to reconsider that decision. He said the latest claims were “devastating for Sara Payne, who described some people at the News of the World as her ‘trusted friends’”.

A News International spokesman said: “News International takes this matter very seriously and is deeply concerned, like everyone.

“As the facts are established, the company and the independent Management and Standards Committee will take all appropriate actions, including co-operating fully with any potential criminal inquiries or civil proceedings which may arise.”

  • The man leading the judicial inquiry into phone hacking has indicated the panel could miss the 12-month deadline for producing its first report.

Lord Justice Leveson said the terms of reference had grown “very substantially” since the Prime Minister’s initial statement announcing a probe. He said that he would “strive” to meet that deadline but “not at all costs”.