Victims who have experienced injustices will now not have their benefits affected by any compensation they receive, including Universal Credit. Previously, individuals who received compensation after a criminal conviction might have been disqualified from certain means-tested benefits based on their income and savings.
For instance, eligibility for Universal Credit was restricted if savings exceeded £16,000. However, the policy of including compensation payments in the overall capital has been eliminated. This change 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.
The Ministry of Justice has raised the maximum compensation amount available to miscarriage of justice victims 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 rebuilding trust with those failed by the system and providing opportunities for victims to restart their lives.
Alex Davies-Jones, the minister for victims and violence against women and girls, highlighted the impact of miscarriages of justice on individuals’ lives and the significance of improved benefit support and increased compensation cap in providing financial redress and recognition to affected individuals.
For individuals claiming Universal Credit with savings exceeding £6,000, a reduction in benefits occurs at a rate of £4.35 for every £250 saved between £6,000 and £16,000. The deduction applies for both single claimants and couples. Those with savings exceeding £16,000 are generally ineligible for Universal Credit, but individuals transitioning from Tax Credits to Universal Credit may still receive Universal Credit for up to a year if savings exceed £16,000.
