A man falsely accused of rape is believed to have become the first such victim to have won compensation under the criminal injuries scheme.
Mr Bishop said he lost his taxi business as a result of the false rape allegation
Mr Bishop was arrested two years ago on suspicion of raping a drunken 17-year-old girl he had picked up in his taxi and took home from a nightclub.
Six weeks later, he was told the case would not proceed as the girl had dropped her claim. The teenage mother of two was later charged with perjury and jailed for 10 months.
Mr Bishop said he lost his taxi business as a result of the false rape allegation.
A tribunal has now ruled that Clive Bishop, 49, a taxi driver, can apply for compensation from the Criminal Injuries Compensation Authority (CICA).
An initial attempt to claim compensation from the CICA was turned down because he was not a victim of violent crime.
However an appeal tribunal of the CICA last week overturned the ruling after his lawyers argued that he had been in fear of physical harm.
His solicitor, Russell Pearce, of the Somerset firm Pardoes, said: “To my knowledge it is the first time a victim of a false rape allegation has been eligible to make a successful claim from the authority.
“It is a very good result because people who have suffered similar false accusations will now have a way of seeking redress.”
Mr Bishop, a married foster carer, from Walton, Somerset, said: “I have been to hell and back.
“I feel the way that I was treated – being arrested in my own living room at 4.30am in front of my wife – I do not think people understand the distress, and the hurt, it caused myself, my wife, my family, and my friends.
“I cannot ever drive a taxi again so this decision will make a huge difference to my life.”
A future hearing will determine the level of compensation.
The CICA said it could not comment on individual cases.