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War widows who were forced to forfeit their pensions will receive a lump sum payment after a long-running campaign.

The compensation scheme will benefit spouses who lost their government income if they remarried or moved in with a new partner before 2015.

Up to 380 people thought to be affected will receive £87,500, but the government said it is "not possible" to restore their pensions in full.

It has also been confirmed that the sums paid out will be subject to tax.

The announcement follows years of lobbying by campaign groups and some MPs for the pensions to be reinstated.

In 2015, pension rules for the spouses of personnel killed as a result of active service were overhauled.

It meant the bereaved would no longer have to give up the ongoing government income they would otherwise be entitled to if they began a new relationship.

But the new rule was not backdated, meaning those who had to forfeit their pensions between 1973 and 2015 were not reimbursed.

In a written statement to the Commons on Wednesday, defence minister Dr Andrew Murrison confirmed the government would stop short of fully restoring the pensions, but announced a one-off payment for those who are eligible.

He said the Treasury and Ministry of Defence are "deeply conscious of the sacrifice these bereaved individuals have made".

Moira Kane, chair of the War Widows Association, told the it was "sad" the pensions had not been reinstated but that "some of these ladies are getting quite elderly so I think the majority will be happy to receive a lump sum".

Veterans' affairs minister Johnny Mercer welcomed the announcement, calling it "the culmination of a campaign that has gone on for about eight years and we have finally got there".

In a video statement on Twitter, he said he had received assurances from the Treasury that a £33 million fund had been made available for the scheme, though this figure has not been confirmed by the department.

In a House of Lords debate on Thursday, the government confirmed the payments would be taxed when independent crossbencher the Earl of Kinnoull asked if the Treasury is "going to take away with one hand what it has given with the other".

Tory peer and president of the War Widows Association Baroness Fookes said the scheme "falls short of the full restitution of a war widows' pension", but added "it would be churlish indeed not to welcome most warmly this long overdue and most welcome payment".

Treasury chief secretary John Glen said: "The legacy of those who made the ultimate sacrifice for this country endures, and it's only right that we honour that service by doing right by their loved ones."

Applications for the scheme are expected to open later this year.