Hundreds wrongly convicted in the Post Office scandal could have their names cleared this year, after emergency laws were announced to "swiftly exonerate and compensate victims".
Post Office Minister Kevin Hollinrake said they had been victims of a "brutal and arbitrary exercise of power".
He added that £1bn had been budgeted for compensation payments.
There were more than 900 convictions linked to the scandal over 16 years, with only 93 so far being overturned.
Between 1999 and 2015, the Post Office prosecuted hundreds of sub-postmasters and mistresses after a faulty computer system called Horizon made it look like money was missing.
Former sub-postmaster Alan Bates - who inspired the recent ITV drama Mr Bates vs the Post Office - told the BBC the announcement of the new law was "another positive step forward".
However, he said "the devil is in the detail, and we've yet to see that".
Ahead of the public inquiry into the affair resuming on Thursday, Prime Minister Rishi Sunak told the House of Commons on Wednesday that those previously convicted in England and Wales would be cleared of wrongdoing and compensated under a new law.
The Scottish government also announced similar plans for those convicted in Scotland, which has a separate legal system.
Downing Street said its aim was to complete the process of overturning the convictions of those affected by the end of 2024.
The prime minister's spokesman said the government intends to "introduce the legislation within weeks" and is "confident it will be well-supported".
Speaking in the Commons after the prime minister, Mr Hollinrake said evidence that emerged from the ongoing public inquiry into the scandal suggested the Post Office acted with "incompetence and malevolence".
He described the decision to overturn the convictions through an Act of Parliament as "unprecedented" and said it had not been taken lightly, given its potential ramifications on the legal system.
Mr Hollinrake said the move applying to England and Wales "raises important constitutional issues" around the independence of the courts, which are normally the authority that would overturn a conviction.
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The minister also accepted the new law would risk seeing people who were genuinely guilty of a crime pardoned - though the government estimates that to be a very small proportion of the total number affected.
Asked by the BBC's PM programme why it had taken a TV drama to inspire action on a problem known about for over a decade, Mr Hollinrake said the show released this year had moved the public as well as people in government.
"We are people ourselves of course. We watch TV ourselves and see this stuff, and we and other people within government realise this is a situation we've got to resolve," he said.
While the full detail of the law has not been published, Downing Street said it would amount to a blanket overturning of convictions tied to the faulty Horizon IT system.
Mr Hollinrake told the Commons former sub-postmasters and postmistresses would not be eligible for compensation until they had signed a declaration that they had not committed any crime.
He said by signing the document, they will become eligible for the compensation payment of £600,000 already available to people who have had their names cleared via the courts.
The declaration is designed to prevent "guilty people walking away with hundreds of thousands of pounds of public money", he said, adding: "Anyone falsely signing this will be subject for prosecution for fraud."
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He was later asked by BBC Newsnight whether the compensation payments would be paid for by the taxpayer or Fujitsu, the tech company that developed the Horizon system.
"I very much hope it is a combination of both," he said, adding that it would be "only right" for Fujitsu to contribute if the public inquiry finds that the company shares responsibility for the scandal.
Justice Secretary Alex Chalk echoed the comments as he called for Fujitsu to "face the consequences" if found to be at fault, on ITV's Peston show.
Fujitsu has been awarded more than £6.5bn in public contracts since 2013, according to procurement analysts Tussell.
Speaking to the BBC Radio 4's World Tonight, Labour MP Kevan Jones, a member of the independent Horizon Compensation Advisory Board, said the decision to exonerate and compensate victims en masse would be "controversial" but that he believed it was the "only way forward".
"You've got a situation where people... didn't come forward to have their convictions overturned because they would not be able to face a court of law. Likewise, we've got a situation where evidence has been destroyed," he said.
"So how you would do an appeal for some of these individuals? It would be very difficult."
The government has also confirmed it will:
- introduce a one-off £75,000 payment ofr the 555 ex-postmasters whose group court case, led by Alan Bates, helped to expose the injustice
- review whether people whose convictions were upheld after an appeal can also be overturned by the new law
- work with administrations in Scotland and Northern Ireland to ensure sub-postmasters in those nations can also be cleared
More on the Post Office scandal
The lawyer who represented the 555 in their first legal action against the Post Office, James Hartley, said the compensation announcement was "a sensible step forward" and would give those affected the option to decide "whether or not to accept that payment as fair compensation".
The government is keenly aware that by moving to unpick decisions made by independent judges, it risks setting a constitutional convention which could impact the independence of the courts.
Lord Ken MacDonald, director of Crown Prosecution Service from 2003 to 2008, said the move amounted to "parliament seizing from the courts and from the judges, the right to say who is guilty and who is not guilty".
He continued: "I think the government is going for a rather grand gesture here and I hope it doesn't come back to bite us."
Wednesday's announcement comes after a fortnight in which a scandal that had played out largely in the wings was thrust centre stage by the ITV drama series.
Lee Castleton, a former sub-postmaster who was left bankrupt after a two-year legal battle with the Post Office, was portrayed in the drama.
Mr Castleton said it cost him £321,000 to go through the legal process with the Post Office and his family was "ostracised" in their village in Yorkshire.
"People abused us in the street for being thieves and my children were bullied," he said.
He told the BBC the compensation payment announced by the government was "much appreciated" but that he "would just like to get to the end of this".
Noel Thomas, 77, from Anglesey in Wales, said he was not convinced by Mr Sunak's plan. Mr Thomas was jailed for false accounting in 2006 after his books fell short by £48,000.
He said he would have to "wait to see the small print", and added he had been "promised a hell of a lot" so far only for nothing to come of it.
Around 700 of the more than 900 prosecutions resulting from the scandal were led by the Post Office, with others carried out by other bodies, including the Crown Prosecution Service.
Some sub-postmasters caught up in the scandal have died or taken their own lives in the intervening years.
A public inquiry into the affair which was launched in 2021 is set to resume on Thursday. The Post Office said it aims to get to "the truth of what went wrong".
A spokesperson for Fujitsu said the company recognises the "devastating impact on postmasters' lives and that of their families" and has "apologised for its role in their suffering".
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2024-01-11 06:16:58Z
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