Hundreds more poured their own savings into their branch to make up apparent shortfalls in order to avoid prosecution.
Marriages broke down, and some families believe the stress led to serious health conditions, addiction and even premature death.
A spokesperson for the Department for Business and Trade said: “We pay tribute to Sir Alan Bates for his long record of campaigning on behalf of victims.
“We can confirm that Sir Alan’s claim has reached the end of the scheme process and been settled.”
The Department has now paid “over £1.2 billion to more than 9,000 victims”.
The Post Office/Horizon scandal reached new heights in the public consciousness after Sir Alan’s campaign for justice was portrayed in the ITV drama series Mr Bates vs the Post Office.
Earlier this year, Sir Alan accused the government of putting forward a “take it or leave it” offer of compensation amounting to less than half of his claim.
Many victims have previously complained about being forced to accept low offers of compensation, without the benefit of legal help.
Last month, the government announced that all victims who are claiming compensation will now be entitled to free legal advice to help them with their offers.
There are four different compensation schemes, which are aimed at different groups of victims.
Individual eligibility for compensation depends on the particular circumstances of each case.
However, the schemes have been criticised for being too slow and complicated, with many of the worst-affected victims receiving far less than their original claims.
