Universal Credit cash rule change means benefit payments won't be stopped
Victims of miscarriages of justice will no longer have their compensation taken into account when claiming benefits such as Universal Credit.
Under the current rules, benefit claimants who have received compensation after a criminal conviction may find themselves ineligible for some means-tested benefits, which are issued to people depending on their income and how much money they have in savings.
For example, you are not eligible for Universal Credit if you have more than £16,000 in savings or investments. But moving forward, a rule that meant compensation payments were included as part of your capital has now been scrapped.
This applies to 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.
It comes after the Ministry of Justice (MOJ) increased the maximum amount miscarriage of justice victims can receive through the Miscarriage of Justice Compensation Scheme from £1million to £1.3million.
Sir Stephen Timms MP, minister for social security and disability, said: "Rebuilding trust in our systems begins by restoring trust with those the system has failed.
"We can't return the years lost by miscarriage of justice victims — but we can, and must, ensure they have every opportunity to restart their lives so they can make the most of the years ahead."
Alex Davies-Jones, minister for victims and violence against women and girls, added: "Miscarriages of justice steal irreplaceable time and devastate lives.
"Better benefit support combined with the uplift of the compensation cap will make a real difference, providing not just financial redress but rightfully deserved recognition to individuals affected."
If you claim Universal Credit and you have over £6,000 in money, savings and investments, your benefit is normally be reduced by £4.35 for every £250 you have between £6,000 and £16,000.
If the amount you have saved doesn't add up exactly to £250, but is over the threshold, another £4.35 is deducted from your Universal Credit.
For example, if you have £6,300 in savings, the first £6,000 would not be subject to any deductions, but the other £300 would see your payments deducted by £8.70.
This would be £4.35 deduced for the first £250, then another £4.35 for the remaining £50 that makes up the £300. These figures apply if you're a single claimant, or claiming as part of a couple.
You are normally not eligible for Universal Credit if you have more than £16,000 in savings. If you claim Tax Credits and you've been asked to move to Universal Credit, you may still be able to get Universal Credit for up to a year if you have more than £16,000.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scottish Sun
8 hours ago
- Scottish Sun
On Universal Credit? How you can save £100s on your summer phone bill
Check below to see if you can save TO YOUR BENEFIT On Universal Credit? How you can save £100s on your summer phone bill Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HEADING off for some summer sun should be a relaxing break, not a source of bill-shock. But with many major mobile networks reintroducing expensive daily roaming charges for using your phone in Europe, the cost of a simple holiday can quickly spiral. Sign up for Scottish Sun newsletter Sign up 1 If you're receiving Universal Credit or other benefits, you could be eligible for a special 'social tariff' Credit: Getty For a family of four, a two-week trip could add £100s in roaming fees alone. However, a little-known secret could save you a fortune. If you're receiving Universal Credit or other benefits, you could be eligible for a special 'social tariff' on your mobile plan, slashing your monthly costs and letting you use your phone abroad for free. These 'social' or 'essential' tariffs offer the same service as regular packages but at a significantly lower price. They typically come with no long-term contracts, a guarantee of no mid-contract price hikes, and two of the three providers even include free roaming in Europe. For example, O2's Essential Plan costs just £10 a month and gives you 10GB of data with unlimited calls and texts. Crucially, you can use up to 10GB of that data in the EU at no extra cost. The plan is a flexible 30-day deal, with no upfront costs or price rises. Meanwhile, SMARTY's Social Tariff provides unlimited data, calls, and texts for £12 a month. For holidaymakers, it includes EU roaming with a generous 12GB data cap. Easy ways to slash your mobile bill Like O2's offer, it's a flexible one-month plan with no annual price rises. Choosing one of these tariffs means you can avoid the daily roaming charges now levied by most major networks since Brexit. Many providers, including EE, Three, and Vodafone, may charge around £2 to £2.57 per day to use your UK allowance in Europe. That could add up to £35 to your bill for a two-week holiday. Providers like EE and Voxi also offer social tariffs, but be aware that their roaming policies may include extra charges. To apply, simply contact your chosen provider. They will ask for some basic information and carry out a quick, confidential check with the Department for Work and Pensions to confirm your eligibility before setting up your plan. The regulator, Ofcom, provides a comprehensive list of all the available social tariffs on its website. Before switching mobile plans, check if you're still in contract to avoid high exit fees. Over 33million people are out of contract, according to Uswitch, so it's worth checking if you can upgrade or switch to avoid paying more than necessary. To check your contract status, text "INFO" followed by your date of birth (DDMMYY) to 85075. You'll get a text confirming if you'd need to pay an early termination fee. These fees only apply if you're still in contract. If no fee is mentioned, you're likely out of contract and free to switch.
Daily Mirror
18 hours ago
- Daily Mirror
DWP benefits and HMRC payments to be issued early next month
The upcoming bank holiday is expected to have a significant impact on some payment dates for DWP and HMRC claimants The upcoming bank holiday is set to significantly alter the payment dates for some benefit claimants. HM Revenue and Customs (HMRC) has already confirmed changes to scheduled payments due on that date, with the Department for Work and Pensions (DWP) expected to follow suit. Those due to receive State Pension or benefits on August 25, including Universal Credit, Personal Independence Payment (PIP), Child Benefit and Attendance Allowance, will receive their money earlier, on Friday, August 22. Payments are typically issued on the first working day prior to a bank holiday to ensure people receive their payment on a day when offices, webchat services and phone lines are open. The DWP is also expected to confirm that Jobcentres across Great Britain will be closed on the bank holiday. Below is a comprehensive list of DWP and HMRC payments which could be affected by the bank holidays on Monday, August 25. It's important to note that if your upcoming payment does not fall on the bank holiday, it will be paid as normal, reports the Daily Record. DWP payment date changes The DWP has yet to confirm the payment date changes, but it is anticipated that Payments due to be made on Monday, August 25 will be issued on Friday, August 22. We will update this article as soon as the information has been confirmed. Payments which could be affected include: Employment Support Allowance (ESA) Carer's Allowance Attendance Allowance Income Support Jobseeker's Allowance (JSA) Universal Credit State Pension Personal Independence Payment (PIP) Pension Credit HMRC payment date changes HMRC has confirmed that payments scheduled for Monday, August 25 will be issued on Friday, August 22. Affected payments include:
Daily Mail
19 hours ago
- Daily Mail
Nancy Pelosi's bizarre rambling during speech to Gen Z sparks 'intoxication' claims
Nancy Pelosi 's speech to young liberals Friday baffled onlookers as she had to stop and start a rambling address. The former Speaker of the House, 85, has made viral moments for the wrong reasons this year, snapping at a reporter for asking if she'd run for a 20th term and using a walker to get around the floor of the Capitol. Addressing Gen Z activists at the Voters of Tomorrow summit in Washington, Pelosi attempted to diagnose problems she saw regarding income inequality. 'We've moved to shareholder capitalists, where the CEO of the company is making like 300 or 400 times what the workers are making. It would take some of the workers a lifetime to make... a lifetime to make what the CEO makes in one year,' she said as she gestured using her finger. 'We have important work to do about fairness and all the rest of that. How could that be okay? Even CEOs have complained about that, that's not what capitalism is supposed to be about.' She got sidetracked in trying to figure out how many years a worker would take to earn what a CEO does, saying you'd 'have to go back to before the Revolution... to make what the boss makes.' 'This is unfair, it's unjust, it's undemocratic, it's wrong, it's shameful and it must be shamed. And we are going to... that's our fight, to cancel the cuts,' she said, referring to Donald Trump's 'Big, Beautiful Bill.' 'But with a reason... and also listening, to how you see what the priorities should be for the future.' Pelosi tried to end: 'I'll just, again, close by saying... and I mean it this time... I'm from Baltimore, I felt when I was going here that I was going back to Baltimore. Any Marylanders here? Any Californians here?' She then cited the Star-Spangled Banner being written in Baltimore before naming a favorite line from it as she ended the talk. Social media - particularly conservatives - pounced at the speech. 'WTF? What's wrong with Nancy Pelosi, is she intoxicated? Gibberish and more gibberish! I don't think the audience can even understand what she is saying. One of the premier faces of the Democrat Party,' wrote Eric Daugherty. Another took on the content of Pelosi's speech: 'What about the hundreds of millions SHE has made trading stocks of those companies based on insider information?' One compared the address to a fellow California politician's speech patterns: 'She drank Kamala's lemonade.' Another succinctly demanded: 'Term limits.' Pelosi, 84, suffered a fall last December in Europe and underwent hip replacement surgery. 🚨 WTF? What's wrong with Nancy Pelosi, is she intoxicated? Gibberish and more gibberish! I don't think the audience can even understand what she is saying. One of the premier faces of the Democrat Party. — Eric Daugherty (@EricLDaugh) July 25, 2025 Many branded Congress a 'nursing home' after Pelosi was pictured using her walking frame to get around the floor a month later. Heading into the 2025 session, the average age of Congress members is 79 days older than last session, at 58.9 years old. While the image of Pelosi has sparked criticism, she is not the oldest serving member of Congress. Delegate to the House Eleanor Norton holds that title at 88 years old. Hal Rogers is also 87, while Maxine Waters is 86, while Steny Hoyer is 85. Republican congresswoman Kay Granger was recently found in a dementia care facility after she vanished from work. A bombshell report in December revealed the 82-year-old Texas Representative, who hadn't cast a vote in the six months prior, was discovered at a memory care facility after reportedly being found wandering lost and confused through her neighborhood, according to an investigation by the Dallas Express. Granger, who wound up a nearly 30-year career in the House in January, was reportedly living in the $4,000-a-month nursing home for the previous six months. Senate Minority Leader Mitch McConnell, 82, has also faced intense scrutiny after several concerning public episodes where he appeared to freeze mid-sentence. To serve in the House, a member must be at least 25 years old, while the age restriction is set at older than 30 in the Senate. The retirement age in the United States is 65. Pelosi was an outspoken advocate in 2023 of Supreme Court term limits, arguing that they would help hold the powerful justices 'to account.' She has represented San Francisco in Congress for 37 years.
