Victims of the Post Office Horizon scandal whose convictions are being quashed by emergency legislation can now apply for compensation of £600,000 or more through a new scheme.

Ministers said they hoped the redress would bring “some relief to postmasters who have waited far too long to get back the money that is rightfully theirs” and begin to “right the wrong” of one of Britain’s worst miscarriages of justice.

Subpostmasters with overturned convictions will begin to receive letters confirming their exoneration this week, the Department for Business and Trade (DBT) said.

Sir Alan Bates, former subpostmaster and founder of the Justice for Subpostmasters Alliance, has campaigned for justice for the wrongfully convicted (PA)

However, some may receive a request to “submit further information” if there is “insufficient evidence” to show it should be quashed, according to the department.

Those eligible for the new Horizon Convictions Redress Scheme can either accept a payout of £600,000, or if they believe their losses exceed that amount can choose a full claim assessment route.

Business Secretary Jonathan Reynolds said: “Postmasters have suffered immeasurably so I hope today’s new redress scheme brings some relief to postmasters who have waited far too long to get back the money that is rightfully theirs.”

He said the Government acknowledged that “every case is different” and fully supports the right of every victim to choose what is best for them.

Justice Secretary Shabana Mahmood said: “Justice must be a reality, not an ideal. Today we begin putting this into practice by overturning the convictions of the innocent postmasters affected by this inexplicable and unprecedented miscarriage of justice.”

She paid tribute to “those hard-working men and women for their courage and determination” and said the Government would work to ensure they are compensated “quickly and fairly”.

The scheme was designed to redress victims whose convictions had not already been overturned in the courts and includes those whose names were cleared by blanket legislation introduced by the previous government.

The Post Office Offences Act enabled postmasters wrongfully prosecuted of swindling from their branches after faulty accounting software made it seem as if money was missing to be exonerated without a lengthy court process.

The case is seen as one of the greatest miscarriages of justice in British legal history.

Hundreds are still awaiting full compensation after the previous government announcing in January their eligibility for £600,000 payouts.

Lawyer Neil Hudgell, whose firm Hudgell Solicitors has represented former subpostmasters during the public inquiry into the scandal, said he was “confident” the Government recognises the challenges faced by victims.

Mr Hudgell, whose firm is advising around 170 people eligible for the new scheme, said: “I warmly welcome the launch of the new scheme and we have more than 170 exonerated postal workers signed up today for us to assist them with their claims as the scheme opens for business.

“We have had many meetings with Government and the civil service over a period of time ahead of the launch of this scheme, including with the new minister in the last week.”

He added: “Our work will not be done until every wronged subpostmaster or Post Office worker is cleared without a stain on their character, and compensated fairly.”