MoJ refused to repay living costs to wrongly convicted partly to save money

Paul Blackburn had more than £100,000 taken off the compensation he received to cover what would have been his living expenses outside prison. Photograph: Matthew Fearn/PA Media

A controversial decision to refuse refunds to wrongly convicted prisoners who were charged for bed and board while in jail was made in part to save money, the Guardian has learned.

The move, which has prompted dismay among ex-prisoners who had tens of thousands of pounds stripped from compensation money to cover “living expenses” while in jail, was justified on the basis that ministers could not retrospectively change policy decisions.