Full Q&A On The Phone Hacking Scandal

The News Of The World (NoW) hacking scandal has taken a shocking new turn with allegations that murdered schoolgirl Milly Dowler's phone was hacked.

The new claim could have implications for the police investigation into the newspaper and other alleged victims of hacking.

:: What has News International admitted to so far?

In 2007, the paper's then royal editor Clive Goodman and private investigator Glenn Mulcaire were jailed for hacking into the mobile phones of royal aides.

News International insisted the phone hacking was restricted to a single rogue reporter.

Andy Coulson, editor of the paper since 2003, resigned following Goodman and Mulcaire's convictions.

Mr Coulson has always denied knowing anything about the practise of phone hacking at the paper. He was interviewed by police as a witness in November 2010.

In 2009, The Guardian claimed voice messages of up to 3,000 celebrities and public figures, including Lord Prescott, Boris Johnson and Elle MacPherson, had been intercepted by NoW journalists while Mr Coulson was editor.

The News of the World denied the claims and News International asked The Guardian to share any evidence it had with police.

In April this year, the NoW apologised "unreservedly" on its website and in the paper, for intercepting voicemails between 2004 and 2006 (when Mr Coulson was editor).

In June this year, News Group - owner of the NoW - formally apologised at London's High Court to Sienna Miller for hacking into her mobile phone. The actress settled for £100,000 damages and legal costs.

Rebekah Brooks, editor of the NoW from 2000 to 2003, told a Commons committee in 2003 that journalists "had paid police for information in the past" but has denied knowledge of specific cases.

:: What is the status of the police investigation?

The Metropolitan Police have come under increasing pressure over the phone hacking scandal.

Their initial investigation resulted in Goodman and Mulcaire being jailed in 2007 but did not implicate any other staff.

In 2009 the Met declined to reopen their inquiry after the Guardian made fresh allegations over those who had allegedly been hacked, saying "no additional evidence has come to light".

A new police investigation was announced in January following receipt of "significant new information" regarding the conduct of News Of The World employees.

On the same day, News International announced a senior executive, Ian Edmondson, had been sacked based on the evidence they had given to police.

Five people have been arrested and bailed by police as part of the new investigation, codenamed Operation Weeting, this year:

News of the World chief reporter Neville Thurlbeck
Former news editor Ian Edmondson
Senior News of the World journalist James Weatherup
Freelance journalist Terenia Taras
Press Association journalist Laura Elston

:: How much could it cost News International?

In April this year, News International instructed lawyers to set up a compensation fund of £20m to deal with "justifiable claims".

Sienna Miller has already accepted a payout of £100,000, while sports presenter Andy Gray settled his case for £20,000.

Mr Gray was one of five test cases that had been due to go to court in January next year along with Labour MP Chris Bryant, interior designer Kelly Hoppen, actor Jude Law and football agent Sky Andrew.

A lawyer representing alleged victims of the phone hacking has suggested there may be as many as 7,000 victims.

:: How likely is a public inquiry?

Labour MP Chris Bryant - who is among those pursuing litigation against the News of the World in the High Court over alleged hacking - has taken the unusual step of demanding - and getting - an emergency debate into the hacking scandal.

He told Sky News that a judicial inquiry was the only way to bring the whole truth to light.

"We need to get to the bottom of two things: what was the scale of the criminality at the News of the World, and secondly, and equally importantly, why did the police do nothing about it in 2006?

"What I would do is set up the inquiry and adjourn it immediately, so it would be a sword of Damocles hanging over the police investigation because there is a danger as time goes on people will leave the scene, leave the country and shred the evidence and we need to make sure there isn't a cover-up of the cover-up."

The chairman of the Commons culture, media and sport select committee, John Whittingdale, called for a public inquiry in April.

He said the News of the World had "some very big questions" to answer.

Former deputy prime minister John Prescott has called for the Government to hold an independent inquiry after he was told his phone messages had been hacked.

Lord Prescott said "criminal activity by our press" had polluted several institutions in the country.

Labour leader Ed Miliband now has also echoed calls for a public inquiry.

He said: "This is a stain on the character of British journalism. The culture and practice of some parts of the industry bring into question the rest of the industry and that's why we need a proper inquiry."

The lawyer for the family of Milly Dowler has also called for an inquiry.

Mark Lewis, told Sky News the PM should join the calls for a public inquiry to "discover the whole truth".

The Prime Minister has brushed off calls for a public inquiry but David Cameron has appeared to throw his weight behind a full police investigation following the Milly Dowler hacking allegations.

"There is a police investigation into hacking allegations... they should investigate this without any fear, without any favour, without any worry about where the evidence should lead them," Mr Cameron said.

"They should pursue this in the most vigorous way that they can in order to get to the truth of what happened."

:: What was the role of private detectives?

In 2006, the information commissioner Christopher Graham told a Commons committee that private detectives have been used by a number of papers for several years to aid journalists in obtaining stories.

Private investigator Glenn Mulcaire is alleged to have been on a year's contract with the News of the World in 2005 (when Mr Coulson was editor) for "research and information services", worth £104,000.

He was additionally paid £12,300 in cash by Clive Goodman to call the voicemail boxes of a target and listen to their messages.

The pair were caught out when the paper published a story about a knee injury to Prince William.

Royal aides feared mobile phone voicemail messages had been intercepted when their new messages were being shown as old.

The men would call a target's mobile, when the call was connected they would call from a different number and instead of leaving a message they would access the voicemail.