No refunds in historic miscarriage of justice cases

But the government has now said people who have already had payouts cannot claim back money retrospectively.

Among those who have been told they will not be refunded money docked from their compensation payments is Paul Blackburn.

Aged 15 he was wrongfully convicted of the attempted murder of another boy and he spent 25 years in prison.

The Court of Appeal said police had fabricated evidence.

When he received compensation in 2011, more than £100,000 was deducted to cover rent and food costs he would have had to pay if he had been a free man.

Last year, after outrage over the case of Mr Malkinson, the policy of clawing back money was stopped.

Some involved in historic cases said it should apply to them too.

But the government has written to Mr Blackburn’s solicitors to say it is an established principle that changes in policy do not apply retrospectively, so he and others cannot claim back money already deducted.

Mr Blackburn says that is “morally wrong” and his solicitors may bring a legal challenge