The House of Lords has voted for the government to refund holders of identity cards, according to reports.
The 12,000 ID card holders should get their £30 back, according to peers, after the scheme was cancelled. Therefore the government may eventually have to pay out up to £360,000.
The government had refused to grant people a refund. But in a hearing this week, peers backed a Labour amendment by 200 votes to 180 to bring about the refunds, the BBC reported.
Some £292 million has already been spent on the scheme, according to the Home Office. It said it would appeal the vote.
Liberal Democrat Lord Phillips said it was an issue of fairness. Lord Hunt, a Labour peer, added that refusing the refunds was “a rather extraordinary principle to adopt and I do think it does impact on the reputation of governments as a whole".
The issue will now return to the Commons.