The first payments have been made to victims of the 7 July London bombings, the Criminal Injuries Compensation Authority has said.
The 7 July attacks killed 52 people, as well as the four bombers
The board said it had sent out two compensation cheques and expected more offers of awards to be accepted.
A dedicated team is dealing with the first interim payments - for bereaved relatives and the severely injured.
So far it has offered 14 payments to bereaved relatives and eight to injured survivors, more than £400,000 in total.
Final figures will be calculated when the extent of injuries and financial loss are clear, which may take "some time", according to CICA.
Under strict Home Office guidelines, bereaved relatives will receive £11,000 each or £5,500 if two or more claim for the same victim.
They will also be able to claim "reasonable" extra payments for funeral costs.
And dependent children will be entitled to £2,000 every year until their 18th birthday.
Some of the most badly injured in the Tube and bus blasts, which killed 52 people and injured more than 700, are unable to work as normal and face an uncertain financial future.
Seriously debilitated survivors who claim for loss of earnings and care costs as well as compensation will receive up to £500,000 each.
Martine Wright, 32, who lost both legs in the Aldgate blast, is expected to receive £110,000.
Davinia Turrell, known to millions across the world as "the woman in the mask" after being photographed clutching a surgical burns mask to her face as she fled the bombing near Edgware Road Tube station, could be entitled to £27,000.
Other compensation levels include £27,000 for the loss of an eye and £16,500 for tinnitus.
Of the 209 applications made, 92 have so far been backed up by police reports.
The CICA also requires a medical report to assess injuries.
Chief executive Howard Webber said: "We would expect over the next year or 18 months for there to be a much larger amount of applications, not from people who have suffered physically but from people who suffered mentally from what happened.
"The majority of those applications will be for relatively small amounts.
"Our working assumption is that there could be 2,500 people who could be eligible... in the region of £10m to £15m.
"We are determined they receive the compensation they are entitled to as quickly as possible."
But some victims and their families have expressed anguish at the level of the awards and the length of time they have had to wait for them.
A separate compensation scheme, the London Bombings Relief Charitable Fund, set up by London Mayor Ken Livingstone, made its first payments two weeks after the attacks.
Interim grants of £5,000 were paid to the bereaved and £3,000 to those in hospital overnight.
Chris Randall, who suffered burns in the Edgware Road bombing, said: "It's been pretty poor and I would have said they could have reacted a lot quicker.
"I feel disappointed. I was injured to a minor degree, if I had lost limbs I would have been absolutely sick of it by now."
Lawyer Colin Ettinger, who represents 15 victims, said: "I think that the only way forward is for there to be a change in legislation."
The charity fund, administered by the Red Cross, has raised almost £9m in donations from charities, companies and individuals.
Bereaved relatives will be given at least £10,000, with an additional payment for each dependent child.
Seriously injured survivors will receive up to £15,000.
And those unable to work for more than four weeks will be offered up to £3,000.