Archbishop Justin Welby has highlighted the importance of forgiveness after his fall from grace following accusations of sex abuse that led to a legal settlement.

Prince Andrew, 62, paid an undisclosed sum earlier this year to Virginia Giuffre, who accused him in a US lawsuit of sexually abusing her two decades ago when she was 17. The prince did not admit wrongdoing in the settlement.

Welby, the most senior bishop in the Church of England, said the Queen was “fully entitled” to have been accompanied by her son at the memorial service for her husband Prince Philip in March.

“Now with Prince Andrew, I think we all have to step back a bit. He’s seeking to make amends and I think that’s a very good thing,” Welby told ITV.

“Forgiveness really does matter. I think we have become a very, very unforgiving society.”

Earlier this year, the royal family removed Andrew’s military links and said he would no longer be known as “His Royal Highness”.

Andrew is not expected to appear when the royal family gather to wave at crowds from the palace balcony on Thursday as part of celebrations to mark the Queen’s 70 years on the British throne.