Dozens of former sub-postmasters and postmistresses should get a clear path in quashing their convictions for fraud, theft and false accounting.
They were convicted of stealing money after the Post Office installed a new computer system, with some imprisoned.
Many have now been told the Post Office will not contest their appeals against conviction.
For years, their criminal record put some of those affected in dire financial circumstances.
Some struggled to secure work, lost their homes, and even failed to get insurance owing to their convictions, but always said the fault was in the computer system.
The decision paves the way for more than 30 cases to being quashed, although the Post Office can seek a retrial. More cases remain under scrutiny.
Jo Hamilton is one of the people told that the appeal against her conviction would not be contested.
"Twelve years I've been battling and it's just drained us. We've been fighting to prove we were innocent. There it is in black and white. I'm not a criminal," she said.
"It's just gone on for so long. It's been a massive part of my life."
Mrs Hamilton was accused by the Post Office of taking £36,000 from the village shop she ran in Hampshire.
She said issues in the Horizon computer system led to big discrepancies in her accounts, which she reported to her Post Office area manager. But that manager could find nothing wrong with the system, and she was put in a situation where "you had to prove your innocence".
After a distressing two-year process, she eventually pleaded guilty to false accounting at Winchester Crown Court in order to escape a more serious charge of theft.
She had to give up her shop and found it difficult to get a new job due to her criminal record, and declaring it affected everyday life, such as failing to get car insurance.
She made ends meet by doing cleaning jobs for people in her village who did not believe she was guilty. Many of them, including the local vicar, came to support her at her sentencing hearing.sonos sonos One (Gen 2) - Voice Controlled Smart Speaker with Amazon Alexa Built-in - Black read more
The Post Office agreed in December to pay almost £58m to settle the long-running dispute with more than 500 sub-postmasters and postmistresses affected by the scandal, many of whom had been fired or made bankrupt as a result.
The settlement brought an end to a mammoth series of court cases over the Horizon IT system used to manage local post office finances since 1999.
Earlier this week, the government announced that retired judge Sir Wyn Williams would lead the inquiry into the Post Office's failings after repeated calls for a judge-led, full public inquiry.
What is the Horizon computer scandal?
The Horizon system, developed by the Japanese company Fujitsu, was first rolled out in 1999 to some post offices to be used for a variety of tasks including accounting and stocktaking.
But from an early stage it appeared to have significant bugs which could cause the system to misreport, sometimes involving substantial sums of money.
It was difficult for sub-postmasters to challenge errors because they were unable to access information about the software to do so.
After more than 900 prosecutions, 550 sub-postmasters raised civil actions against the Post Office which agreed to pay £58m damages.
The English Criminal Cases Review Commission (CCRC) has referred 47 convictions brought under Horizon evidence to the Appeal Court.
The Director of Public Prosecutions is also considering whether there should be charges of perjury against officials who claimed in court there were no problems with Horizon, even though emails and other documents now suggest they knew there were.
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