Emma Reynolds has urged ministers to not only compensate people for financial losses, but also to pay out for the 'considerable distress' caused to those affected by the Government's 'hostile environment' policy.
It comes amid growing opposition to Home Office proposals to cap awards from the Windrush compensation scheme, which has now been extended until mid-November.
Hundreds of British citizens who arrived in the UK before 1973 were caught up in the Windrush scandal, which saw people wrongly detained, threatened with deportation, and in some cases, deported.
They include Wolverhampton grandmother Paulette Wilson, who wrongly had her right to remain in the UK withdrawn by the Home Office and was detained in an immigration removal centre.
Ms Reynolds, the Labour MP for Wolverhampton North East, has submitted a formal response to the Home Office consultation.
In it she details the experiences of Ms Wilson and highlighted the 'appalling and inhumane' way in which a number of her constituents have been treated.
She said: “In my submission I called on the Government to fully compensate people for all financial losses incurred as a result of the Government’s hostile environment, and to go further and include compensation for the considerable distress caused to people including Paulette.
“If the government fails to do this then it will be inflicting a second injustice upon the Windrush generation.
"It must never be forgotten that the Windrush generation has made an enormous contribution to the UK and did nothing to deserve this mistreatment.
“When the final scheme is announced I will study it carefully to make sure that it addresses the points that I have made in my submission.
"If it does not I will not hesitate to raise this matter in Parliament and call for real justice for the Windrush generation.”
The Home Office announced a cap on compensation payments to ensure that no individual receives a 'disproportionately' high payout from the public purse.
Home Secretary Sajid Javid committed to providing financial redress for those caught up in the scandal by appointing a lawyer and son of Windrush parents to oversee the design of the scheme.