DWP to make big changes to means-tested benefits including Universal Credit within DAYS
Payments received through the miscarriage of justice compensation scheme will no longer count as income when determining eligibility for support such as Housing Benefit and Universal Credit.
1
The government-funded programme gives payouts to those who have been wrongly convicted of a crime or had their conviction overturned.
Under current rules, people who receive this reward may not be able to claim means-tested benefits as it can push their income above the eligibility threshold.
But come Tuesday July 22, the Department for Work and Pensions (DWP) said it is no longer counting this compensation as capital when calculating these types of benefits.
The new rules apply across Great Britain and Northern Ireland.
It means individuals who have been awarded compensation for a miscarriage of justice will not have this payment included when assessing their eligibility for means-tested support.
And if you previously could not claim the support because of the compensation payout, you could reapply.
The DWP said: "Any compensation payments you received will not be taken into account as capital when calculating entitlement to these benefits.
"You will need to provide a copy of your compensation award as part of the application process."
If you are already claiming means-tested benefits but have received a payment, you should also report this as a change of circumstance.
The department will be able to consider your benefits to ensure you are receiving the correct amount.
Cost of Living payment updates — Thousands have just days to claim free £300 DWP cash
You can report a change in your circumstances by visiting www.gov.uk.
What are means-tested benefits?
Means-tested benefits are awarded based on a person's financial situation.
The types of means-tested benefits include:
Pension Credit
Universal Credit
Housing Benefit
income-based Jobseeker's Allowance
income-related Employment and Support Allowance
Income Support
The support is only available to those who can prove that their income is under a certain amount.
Plus, exactly how much you are entitled to can vary from person to person.
For example, every £1 you earn from working, your Universal Credit payment goes down by 55p.
Meanwhile, the maximum amount of savings you can have to qualify for Universal Credit is £16,000.
Therefore, if you receive a sum of money that takes you over this threshold, you are likely to see your benefits stopped completely.
If you have £6,000 or less in your bank account, this will not affect your Universal Credit claim.
To qualify for Pension Credit, you must have less than £10,000 in savings.
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