Billions of pounds will be set aside to compensate victims of two major public scandals, Rachel Reeves announced in the budget.

Some £11.8bn will be set aside to compensate those affected by the infected blood scandal and £1.8bn will be set aside to compensate victims of the Post Office Horizon scandal, the Chancellor told the Commons.

Public inquiries into both scandals have recommended swift and generous compensation packages for those who have suffered injustices, but Reeves said the previous Conservative government had “not budgeted” for the costs of this.

In her budget speech, the Chancellor told MPs: “The previous government also failed to budget for the costs they knew would materialise.

“The opposition leader (Rishi Sunak) rightly made an unequivocal apology for the injustice of the infected blood scandal on behalf of the British state, but they failed to budget for the costs of compensation.

“Today, for the first time, we will provide targeted funding to compensate those infected and those affected, in full, with £11.8 billion in this Budget.

“Today I am also setting aside £1.8 billion to compensate victims of the Post Office Horizon scandal, a long-overdue redress for the pain and injustice they have suffered.”

Some 30,000 NHS patients received blood products contaminated with HIV or hepatitis C between the 1970s and early 1990s.

The scandal has not only caused thousands of deaths, but also long-term impacts on the lives of those affected and their families.

Some were jailed or forced to repay thousands of pounds, while others were ostracized by their communities for crimes they did not commit.

Jason Evans, director of Factor 8, a leading infected blood campaign, welcomed the Chancellor’s announcement and said that while the compensation costs may “seem high”, that is “because the scale of the suffering, losses and deaths due to the scandal is high. .

He said many affected by the scandal believe the government should “recover” costs from companies that manufactured contaminated blood products.

Evans added: “Both public authorities and commercial organizations share responsibility for the infected blood scandal. Both knowingly allowed infected blood products to be in circulation for patient use.

“I encourage the Government to carefully consider whether the public interest is served by allowing companies whose products kill people to escape their share of responsibility.”