Ministers are considering legislation that would exonerate all sub-postmasters and mistresses wrongly convicted based on false evidence provided by the Post Office's Horizon accounting software.
Justice Secretary Alex Chalk told MPs the idea is receiving "active consideration" after Nadhim Zahawi asked him to "bring in a simple bill to quash" all wrongful convictions "immediately".
The Post Office scandal saw more than 700 sub-postmasters convicted of fraud and theft after the Horizon system said there was money missing from accounts, leading to accusations that staff were stealing.
Mr Zahawi, when addressing Mr Chalk, told the Commons those wrongly convicted could not claim compensation until their convictions are quashed.
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