The alleged fantasist who sparked the Westminster paedophile investigation has been charged with child sex offences.

The man, who can only be identified as Nick, was arrested last year and has already appeared in court, charged with multiple offences relating to allegations of making and possessing hundreds of indecent images of children. He has also been charged with voyeurism.

He has pleaded not guilty to all charges, which allegedly took place between 2015 and 2016, and is expected to stand trial later this year.

The extraordinary development comes as prosecutors are considering whether he should be charged for allegedly lying about being abused as a child and then fraudulently claiming compensation for the ordeal.

In 2014, Nick told Scotland Yard that a VIP paedophile ring, operating in Dolphin Square in Westminster, had raped, abused and even murdered young boys.

Lord Bramall was falsely accused credit: Geoff Pugh

He claimed the group included; the late former Prime Minister, Sir Edward Heath; the former head of the Army, Field Marshall Lord Bramall; the former Home Secretary, Lord Brittan and the former Tory politician, Harvey Proctor.

The Metropolitan Police described his sensational claims as "credible and true", and launched its disastrous Operation Midland investigation, which cost £2.5 million and traduced the reputations of a number of high profile figures.

During the 16-month probe, the homes of Lord Bramall, Lord Brittan and Mr Proctor, were raided by police.

But the controversial inquiry was shut down in March 2016 without a single arrest having been made, and the Met has since apologised to those who were falsely accused.

Harvey Proctor had his home raided by police credit: Paul Grover

Despite being charged with paedophile offences, Nick cannot be identified, because as a complainant of a sex offence he enjoys lifelong anonymity.

Lord Bramall,who is 94, said: "If the charges are proven in court, then maybe this is why he started this great furore. He was presumably obsessional about this abuse of children.

"I don't even know who the chap is. It is unbelievable that the police called him credible and true. That was absolutely disgraceful. By doing that police took the lie on its head.

"Before they searched my house the police took no steps to see if he was credible and true. And now he has been charged with possessing and making indecent images of children. He got £50,000 from the Criminal Injuries Compensation Authority for just making the allegation that had not been proved or taken to court."

Nick claimed he was abused by a VIP paedophile ring in Dolphin Square credit: PA

Lord Bramall's wife died shortly after the raid and was never aware that her husband, a hero of the D-Day landings, had been cleared of any wrongdoing.

Mr Proctor, who lost his home and his job as a result of the damage to his reputation, said: "I always knew that Nick was a fantasist. I am appalled that the Metropolitan Police Service failed to investigate the fact that my accuser was an alleged paedophile.

"I am shocked and I am hurt. To keep this out of the public arena for nine months makes me more suspicious about the motives of the Crown Prosecution Service and the police. Nick should never have been described as credible and true."

Scotland Yard has apologised for failings during Operation Midland credit: PA

A report by Sir Richard Henriques, a retired High Court Judge, which was published in November 2016, found a catalogue of failings by Scotland Yard.

As well as issuing apologies to those who were falsely accused, police have paid out £100,000 damages each to Lady Brittan and to Lord Bramall.

Mr Proctor is suing the force for £500,000, having lost his home as a result of the police actions.