Victims of wrongful convictions will no longer see their benefits impacted by compensation payments. Previously, individuals who received compensation after a criminal conviction risked losing eligibility for certain means-tested benefits based on their income and savings.
For instance, having more than £16,000 in savings could disqualify someone from receiving Universal Credit. However, the recent change eliminates the inclusion of compensation payments in the calculation of total capital for benefit assessment purposes.
This adjustment 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 under the Miscarriage of Justice Compensation Scheme from £1 million to £1.3 million. Sir Stephen Timms MP, the minister for social security and disability, emphasized the importance of restoring trust with individuals failed by the system, acknowledging that while lost time cannot be reclaimed, providing opportunities for a fresh start is crucial.
Alex Davies-Jones, minister for victims and violence against women and girls, highlighted the significant impact of miscarriages of justice on individuals’ lives and praised the enhanced benefit support and increased compensation cap as a step towards recognizing and addressing the hardships faced by affected individuals.
Regarding Universal Credit claims, individuals with savings exceeding £6,000 may experience a reduction in benefits. The reduction is typically £4.35 for every £250 saved between £6,000 and £16,000. If savings surpass £16,000, eligibility for Universal Credit may be affected, though certain exceptions apply for Tax Credit recipients transitioning to Universal Credit.
Overall, the adjustment in benefit assessment rules for miscarriage of justice victims aims to provide fairer support and acknowledgment for those impacted by wrongful convictions.