This payment to Sir Alan comes after more than 20 years of demanding justice for victims of the Horizon scandal, which led to a group of 555 sub-postmasters launching landmark legal action against the Post Office.
The exact amount paid to Sir Alan has not been made public, and he did not respond to requests for comment.
Between 1999 and 2015, more than 900 sub-postmasters were wrongfully prosecuted after faulty Horizon IT systems flagged deficiencies in Post Office branch accounts.
Hundreds of people, in order to avoid prosecution, deposited their savings into the branch to cover the apparent shortfall.
Marriages broke down, and some families believe the stress led to serious health problems, addictions, and even premature death.
A spokesperson for the Department of Trade and Commerce said: "We pay tribute to Sir Alan Bates, a longtime campaigner for victims.
"We confirm that Sir Alan's claim has reached the end of the scheme process and has been settled."
By September 2025, more than 9,100 sub-postmasters had been paid a total of £1.23 billion in compensation.
Sir Alan first received a compensation offer in January 2024, which he rejected, calling it "cruel and insulting."
In May 2024, he was made another offer, which he said was approximately a third of the compensation he sought. In May of this year, he said he received a third offer for less than 50% of his original claim.
Sir Alan was part of the Group Litigation Order compensation scheme, under which claimants can either receive £75,000 or choose their own settlement. are.
As part of his plan to claim his own settlement, Mr. Bates told the BBC. His lawyers had also included compensation due for his 20-year campaign for justice for the sub-postmasters implicated in the scandal.
The Post Office/Horizon scandal reached new heights in public consciousness last year when Sir Alan's campaign for justice was featured in the ITV drama series Mr. Bates vs. the Post Office.
The government adopted all but one recommendation of a report published after an investigation into the scandal.
The investigation detailed the full human impact of the scandal for the first time: the report stated that more than 13 people may have committed suicide as a result of what they suffered.
Earlier this year, Sir Alan accused the government of offering "take it or leave it" compensation, which was less than half of what they claimed.
Many victims have previously complained of being forced to accept low compensation offers, without legal help.
Last month, the government It was announced that all victims claiming compensation will now be entitled to free legal advice to help with their proposals.
There are four different compensation schemes, aimed at different groups of victims.
Individual eligibility for compensation depends on the specific circumstances of each case.
However, these schemes have been criticized for being too slow and complex, with the most affected victims receiving far less than their original claims.