Post Office bosses should have known Horizon was faulty but "maintained the fiction that its data was always accurate" when prosecuting subpostmasters, the first tranche of a public inquiry's final report has concluded. It is believed 13 people may have taken their own lives after being falsely accused, said inquiry chairman Sir Wyn Williams.

He said "a number of senior" people at the organisation were aware that the Legacy Horizon system was capable of error up until it was changed in 2010. A number of employees were also aware that the updated system, Horizon Online, also had bugs and defects. A total of 59 victims of the Horizon scandal contemplated suicide, with 10 attempting to take their own lives, Sir Wyn's final report concluded.

He said there was a "real possibility" 13 people took their own lives as a result of the suffering they endured during the scandal. Sir Wyn said about 10,000 people are eligible to submit compensation claims following what has been dubbed the worst miscarriage of justice in British legal history.

The scandal was propelled into the spotlight in January last year following the airing of ITV's drama Mr Bates vs The Post Office, starring actor Toby Jones as Sir Alan Bates, the former sub-postmaster and founder of the Justice for Subpostmasters Alliance.

Ex-Post Office chief executive Paula Vennells is accused of overseeing a huge number of wrongful prosecutions and convictions. She was in post at the time Sir Wyn said bosses should have known Horizon was faulty.

The chairman's 162-page report criticised the "unnecessarily adversarial attitude" of the Post Office and its advisers towards making compensation offers to victims. It also said the organisation and the Government "simply failed to grasp how difficult it would be to provide appropriate financial redress".

Approximately 1,000 people were wrongly prosecuted and convicted throughout the UK between 1999 and 2015 as a result of faulty Fujitsu software, with a significant number contemplating self-harm, the report said.

Sir Wyn also singled out the behaviour of Post Office investigators, saying subpostmasters "will have been in wholly unfamiliar territory and they will have found the experience to be troubling at best and harrowing at worst".

The first tranche of the report, published on Tuesday, focused solely on the devastating impact of the scandal on victims and the compensation offered to subpostmasters. A further report, potentially attributing blame, is expected at a later date.

Teasing his conclusions for the final overarching report, which is still likely to be some months away, Sir Wyn said: "Although many of the individuals who gave evidence before me were very reluctant to accept it, I am satisfied from the evidence that I have heard that a number of senior, and not-so-senior employees of the Post Office knew or, at the very least should have known, that Legacy Horizon was capable of error.

"Yet for all practical purposes, throughout the lifetime of Legacy Horizon, the Post Office maintained the fiction that its data was always accurate."

Sir Wyn made a total of 19 recommendations as part of his report, including that the Government and the Post Office should make a public announcement about what they mean by "full and fair redress".

He also said claimants who apply for compensation as part of the main scheme, the Horizon Shortfall Scheme, should be entitled to free legal advice.

The chairman also addressed criticism of another scheme, the Horizon Convictions Redress Scheme, saying claimants should be entitled to the £600,000 fixed offer even if they submit their own detailed individual claim.

Sir Wyn urged the Government to establish a public body to devise, administer and deliver compensation to those wronged by authorities.

The report said the number of people eligible to submit compensation claims as part of the scandal is likely to rise "by at least hundreds, if not more, over the coming months".

In a statement, the Post Office said: "The inquiry has brought to life the devastating stories of those impacted by the Horizon Scandal.

"Their experiences represent a shameful period in our history.

"Today, we apologise unreservedly for the suffering which Post Office caused to postmasters and their loved ones.

"We will carefully consider the report and its recommendations."

Business Secretary, Jonathan Reynolds, said: "The publication of the Post Office Horizon IT Inquiry's report today by Sir Wyn and his team marks an important milestone for subpostmasters and their families.

"I welcome the publication today and am committed to ensuring wronged subpostmasters are given full, fair, and prompt redress.

"The recommendations contained in Sir Wyn's report require careful reflection, including on further action to complete the redress schemes. Government will promptly respond to the recommendations in full in Parliament."

Post Office Minister, Gareth Thomas, said: "I welcome the Inquiry's publication today and pay tribute to Sir Wyn and his team for their comprehensive and penetrating work.

"We must never lose sight of the Horizon Scandal's human impact on postmasters and their families, which the Inquiry has highlighted so well.

"Sir Wyn's report highlights a series of failings by the Post Office and various governments. His recommendations are immensely helpful as a guide for what is needed to finish the job, and we will respond in full to Parliament after carefully considering them."