152,000 Northern Rock customers are in line for hundreds of pounds each in compensation following mistakes in the bank's paperwork.

Bank staff failed to include key details on annual statements about loans, including the original amount which had been borrowed.

Customers who took out personal loans of less than £25,000 will receive an average of £1,170 each.

Northern Rock Asset Management (NRAM), which is the state-owned part of the lender, has confirmed it will refund a total of £270m to affected customers.

The Chancellor told Parliament that 152,000 customers who had loans below £25,000 were affected and blamed "an error originating in 2008 when Northern Rock was in public ownership."

"Some customers with certain types of mainly unsecured personal loans were not given all the mandatory information in their statements which they were entitled to by law," George Osborne added.

Treasury Economic Secretary Sajid Javid said the payments are "likely to increase public sector net borrowing for 2012/2013."

But he added that the refunds are "not expected to delay materially" the timings of NRAM's repayment of £19.6bn Government funding.

Northern Rock was split into two separate companies in 2010; Northern Rock plc, which was sold to Virgin Monday earlier this year, and NRAM.

At the height of the financial crisis, the troubled bank was forced to rely on funding from the Bank of England to keep it from collapsing.

Richard Banks, the chief executive of UK Asset Resolution, which owns NRAM, said: "We are determined to do the right thing for customers and the taxpayer.

"We will be writing to all customers who are affected and advising them on next steps.

"We have not received any complaints or claims as a result of this matter and as far as we are aware it has not resulted in financial loss for customers."