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The 162-page volume one report, published by Sir Wyn Williams, the retired judge who chairs the inquiry, details the “disastrous human impact” on thousands of sub-postmasters wrongly held responsible for shortfalls caused by the faulty Horizon software system.

The report also addresses the compensation process, criticising the Post Office and its legal advisers for what it describes as an “unnecessarily adversarial attitude” in many cases. More than 10,000 individuals are now seeking redress — far exceeding the more than 1,000 people prosecuted over the period in question.

Sir Wyn described the emerging picture as “profoundly disturbing”. While four suicides have previously been attributed to the scandal, he said at least 13 deaths could be linked, with the true figure potentially higher due to unreported cases. The report also records 19 people developing alcohol dependency, including individuals who said they were unable to sleep without drinking.

Of the 59 who reported suicidal thoughts, 10 went on to attempt suicide, in some cases more than once. These experiences were described as common among both those prosecuted and those who were not.

One sub-postmaster told the inquiry: “The impact on me of the treatment the Post Office subjected me to has been immeasurable. The mental stress was so great for me that I had a mental breakdown and turned to alcohol as I sank further into depression. I attempted suicide on several occasions and was admitted to a mental health institution twice.”

Between 1999 and 2015, around 1,000 sub-postmasters were prosecuted and convicted on the basis of information from Horizon, which incorrectly suggested financial wrongdoing. A further 50 to 60 people were prosecuted but not convicted. Thousands more were forced to cover apparent shortfalls out of their own pockets, despite not being charged.

The inquiry found that Post Office executives either knew or ought to have known that Horizon was unreliable, but nonetheless “maintained the fiction that its data was always accurate” when pursuing criminal prosecutions.

Sir Wyn said he had received more than 200 victim statements, the vast majority of which described very significant suffering, including serious illness, mental health issues, bankruptcy, loss of homes and long-term financial distress. Even those acquitted reported being socially ostracised, while some 350 individuals are believed to have died before receiving compensation.

The families of affected sub-postmasters also suffered from financial hardship and psychological trauma, the report said.

Approximately 10,000 individuals are pursuing compensation through four schemes — two of which merged in June — with the number expected to rise by hundreds in the coming months. Over 3,000 claims remain unresolved, around half of which are still at an early stage.

Sir Wyn criticised the Post Office’s approach to redress, writing: “On too many occasions, the Post Office and its advisers have adopted an unnecessarily adversarial attitude towards making initial offers, which have had the effect of depressing the level at which settlements have been achieved.”

He called for urgent action to ensure “full and fair” compensation, and urged the government and Post Office to agree on a clear definition of that term to guide future offers. Victims should receive free legal advice, paid for by the government, to help them choose between a fixed-sum settlement or a detailed assessment, he said. He also recommended extending compensation to close family members of those affected.

Sir Wyn gave the government until 10 October to respond and called for a programme of restorative justice — including counselling and educational bursaries — by the end of the month, to be agreed with the Post Office and Fujitsu, the Japanese company that developed Horizon. He also proposed the creation of a permanent public body to oversee financial redress in cases of official wrongdoing.

Responding to the report, Post Office chair Nigel Railton issued a “clear and unequivocal apology to every single person affected by this scandal” and admitted the organisation had “let them down”. He pledged to do “everything in my power” to ensure that affected individuals received the redress they were due without delay.

The findings follow 225 days of public hearings and 298 witness testimonies. The report does not detail how much has been paid in compensation to date, but government figures show that more than £1 billion had been distributed to over 7,300 sub-postmasters by 9 June.