This comes as he faces growing pressure to resign over his role in the scandal when he served as minister in charge of the Post Office from 2010 to 2012.

Tory MP Lee Anderson urged the MP to quit, telling him to “clear his desk, clear his diary and clear off”.

WATCH: Sunak announces new plan to compensate and exonerate victims of Post Office scandal

Davey, who served as postal affairs minister in the coalition government, was knighted in the 2016 New Year’s Honours List for “political and public service”.

He is being accused of having turned down a meeting with campaigner and former sub-postmaster Alan Bates while he fought for justice for postal workers.

But the Lib Dem leader has attempted to distance himself from the scandal, claiming he was “deeply misled” about the situation during his time as post office minister.

More than 700 sub-postmasters were handed criminal convictions between 1999 and 2015 after faulty software wrongly suggested the employees were stealing money.

It has since emerged that Davey, along with several other ministers, faced repeated warnings about the accounting problems and issues with the software.

A spokesperson for the Lib Dem politician said he “bitterly regrets” that the Post Office was not honest with him.

At PMQs today the Prime Minister confirmed the Government will introduce new primary legislation to exonerate those convicted as a result of the Horizon IT software.

The legislation will also see compensation handed to the victims of the scandal.

Sunak told MPs at PMQS: “Today I can announce that we will introduce new primary legislation to make sure that those convicted as a result of the Horizon scandal are swiftly exonerated and compensated.

“We will also introduce a new up-front payment of £75,000 for the vital GLO (group litigation order) group of postmasters.”

He described the scandal as “one of the greatest miscarriages of justice in our nation’s history”.

The PM added: “People who worked hard to serve their communities had their lives and their reputations destroyed through absolutely no fault of their own. The victims must get justice and compensation.”

He told MPs that business minister Kevin Hollinrake will set out “more details to the House shortly”.

Sunak said: “We will make sure that the truth comes to light, we right the wrongs of the past and the victims get the justice they deserve.”