Ministers have backed a new law that will give effect to the Mother and Baby Institutions Payment Scheme.
The new bill was approved by Cabinet this morning.
All mothers who spent time in such an institution will be entitled to a payment, with the amount increasing based on their length of stay.
Children who spent 6 months or more there will be entitled to a payment, depending on the time they spent in the homes.
Children's Minister Roderic O'Gorman is aiming to bring the bill before the Dail or Seanad, as soon as possible.
