Victims of wrongful convictions will now be able to claim benefits like Universal Credit without having their compensation taken into consideration. Previously, individuals who received compensation after a criminal conviction risked being ineligible for certain means-tested benefits based on their income and savings.
The rule that counted compensation payments as part of one’s capital, potentially impacting benefit eligibility, has been eliminated. This change affects six means-tested benefits, including Universal Credit, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, Income Support, Housing Benefit, and Pension Credit.
The Ministry of Justice recently raised the maximum compensation amount for miscarriages of justice victims under the Miscarriage of Justice Compensation Scheme from £1 million to £1.3 million. Sir Stephen Timms MP, minister for social security and disability, emphasized the importance of restoring trust with those let down by the system and providing opportunities for a fresh start.
Alex Davies-Jones, minister for victims and violence against women and girls, noted that miscarriages of justice cause irreparable harm and praised the enhanced benefit support and compensation cap increase for offering financial redress and recognition to affected individuals.
For Universal Credit claimants with savings exceeding £6,000, benefits are typically reduced by £4.35 for every £250 above £6,000 up to £16,000. Even if the saved amount doesn’t align precisely with £250 increments, deductions are made accordingly. Individuals with over £16,000 in savings are usually ineligible for Universal Credit, except in certain circumstances when transitioning from Tax Credits.
This development reflects a significant step towards providing fairer support for miscarriage of justice victims and ensuring they can rebuild their lives with financial security.
