A new UK wide compensation scheme has been announced for sub-postmasters with overturned convictions.

Around 900 people will qualify for the scheme, according to the Department of Business and Trade.

Two compensation routes will be available including one that offers £600,000 as a final settlement and another route for sub-postmasters who think they are owed more.

Regardless of the route chosen, those who qualify for compensation will be given an immediate £200,000 payout.

Business and Trade 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 any postmaster who thinks they are eligible for the scheme should come forward to register.

The scheme launched on Tuesday is for everyone who was exonerated by a law introduced in May, which cleared the names of the hundreds of sub-postmasters wrongly convicted in the Post Office scandal.

It gives the same financial compensation offered to those who had their convictions overturned by the courts before the introduction of the legislation in May.

Under the scheme announced on Tuesday, those who reject a £600,000 final fixed settlement will have their application assessed by experts at the Department for Business and Trade.

If applicants fail in their bid, their compensation will be limited to £450,000.

Because of this risk the government is advising people to take legal advice.