23-07-2025
Huge change to Universal Credit rules that means benefits WON'T be stopped over cash mistake
We reveal who exactly is affected by the rule change below
TO YOUR BENEFIT Huge change to Universal Credit rules that means benefits WON'T be stopped over cash mistake
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A HUGE change to Universal Credit rules meaning benefits won't be stopped over a cash mistake has been confirmed by the government.
Claimants who have received compensation after a criminal conviction is reversed will no longer be ineligible for some means-tested benefits.
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A huge change has been brought in for miscarriage of justice victims on benefits
Credit: Alamy
Means-tested benefits are issued dependent on your income and capital - the value of any savings, investments and property you hold.
Previously, compensation payments issued after wrongful convictions counted as income and capital for people on six means-tested benefits.
This meant they were no longer eligible for payments and missed out on vital support.
However, since yesterday and moving forwards, this rule has now ben scrapped.
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."
It comes after the Ministry of Justice (MOJ) boosted the maximum amount miscarriage of justice victims in England and Wales can receive to £1.3million from £1million - a 30% rise.
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."
Who is affected?
The new rule applies to those on six means-tested benefits in England, Wales, Scotland and Northern Ireland. The full list is:
income-based Jobseeker's Allowance
income-related Employment and Support Allowance
Income Support
Housing Benefit
Pension Credit
Universal Credit
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Any compensation payments issued to claimants on these benefits under The Miscarriage of Justice Compensation Scheme will no longer be classed as capital or savings.
A miscarriage of justice compensation payment is issued when someone has been convicted of a criminal offence and:
had their conviction reversed
a new or newly discovered fact shows beyond reasonable doubt that there has been a miscarriage of justice
If you are currently on one of the six benefits and have previously received a miscarriage of justice compensation payment, you need to report a change of circumstances to the department who pays that benefit.
Your change of circumstances should explain you've previously received compensation and that this is no longer classed as capital.
The department responsible for paying the benefit will then consider whether you are receiving the correct amount.
You will need to provide a copy of your compensation award notification.
How to claim a miscarriage of justice payment
The maximum amount of compensation issued to a miscarriage of justice victim who has been wrongfully imprisoned for up to 10 years is £650,000.
For those who were sentenced to 10 or more years, the maximum amount is £1.3million.
Both these maximum amounts were increased by 30% earlier this month, from £500,000 and £1million, respectively.
You can apply for compensation if your conviction has been overturned by the courts and any of the following apply:
your appeal was successful and it was submitted 28 days or more after your conviction in the Crown Court, or 21 days or more after sentencing for a conviction in a magistrate's court
your conviction was overturned after it was referred to the Court of Appeal by the Criminal Cases Review Commission (CCRC)
you've been granted a free (unconditional) pardon
You can find out more about applying for compensation payments via
MOJ data published in March revealed 591 applications for compensation due to a miscarriage of justice were received between April 2016 and March 2024.
Of these, 39 were approved and 35 payments were made totalling £2,380,700.
