Tánaiste and Minister for Health Mary Harney has said it was "entirely wrong" to illegally charge pensioners for State care for almost 30 years.
In a statement, Ms Harney said repayments would be made "quickly, fairly and efficiently" to those affected.
She also pledged to introduce recommendations contained in the Travers Report as a matter of urgency.
The report by former Forfás head John Travers outlines how the illegal charging of State nursing home residents was handled by senior civil servants and members of the Department of Health.
Ms Harney said it was "entirely wrong" that 300,000 people were charged illegally in the 28 years since the charges were introduced in 1976.
"They were old, they were poor, they suffered from mental illness, they had intellectual disabilities, they were physically disabled," Ms Harney added. "As vulnerable people, they were especially entitled to the protection of the law and to legal clarity about their situation."
Ms Harney sought to deflect criticism of officials within her department. "Since September, I have met many professional and dedicated people throughout the Department." However, she accepted there were "grave issues" to be addressed and that certain "minimum standards" of care were not adhered to in the way the charges were levied.
"I will work with my Department for change, so that the people of the Department of Health and Children can move beyond these difficult days and take pride in new public service achievements."
She also said she has written to the chairman of the Health Service Executive, Liam Downey, asking him to consider the findings of the report.
The cost of repaying the charges could be as much as €2 billion. The Government is losing €2.5 million per week because it still cannot legally charge for nursing home care.
The report will be published later today after it was delayed yesterday.
