BBC graphic showing Lord McAlpine, Newsnight logo and George Entwistle
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McAlpine: BBC settlement over Newsnight child abuse claims

15 November 2012 Last updated at 22:37 GMT

The BBC has reached a settlement of £185,000 with the Conservative Peer, Lord McAlpine after a Newsnight report resulted in him being wrongly accused of child abuse.

His lawyers have warned that legal action is also being prepared against ITV's This Morning programme as well as a lengthy list of individuals who identified Lord McAlpine on Twitter.

He added it would cost them 'a lot of money'.

Mark Easton reports.