UK Government Moves to Protect Benefits for Miscarriage of Justice Victims

In a significant step to support those wrongfully convicted, the UK government has introduced new legislation to ensure that compensation received from miscarriage of justice schemes will not affect entitlement to means-tested benefits. The Social Security (Income and Capital Disregards) (Amendment) (No. 2) Regulations 2025, laid before Parliament, aims to safeguard the financial well-being of individuals receiving compensation under these schemes.

What's Changing?

The new regulations stipulate that any compensation awarded under the miscarriage of justice schemes administered by the Ministry of Justice in England and Wales, as well as similar schemes in Scotland and Northern Ireland, will be disregarded indefinitely when assessing eligibility for certain means-tested benefits. This includes Universal Credit, income-based Jobseeker’s Allowance, and Housing Benefit, among others.

Previously, receiving such compensation could potentially reduce or eliminate a claimant's entitlement to benefits. By disregarding these payments, the government intends to prevent further financial hardship for those who have already suffered due to wrongful convictions.

How Do the Schemes Work?

Under Section 133 of the Criminal Justice Act 1988, individuals who have had their convictions overturned or have been pardoned due to a miscarriage of justice are eligible for compensation. The process involves an application within a specified period (two years in England and Wales, three years in Scotland), and the compensation amount is determined by an Independent Assessor.

In England and Wales, compensation can reach up to £1 million for those wrongfully imprisoned for over ten years. Scotland offers an additional ex-gratia scheme for certain cases, and Northern Ireland follows a similar model to England and Wales.

Impact and Implementation

The Department for Work and Pensions estimates that between 62 and 86 households could be affected annually by these changes, with potential additional cases from Scotland and Northern Ireland. The legislation will apply to payments made prior to its enactment, allowing past recipients to benefit from the disregard.

No significant impact on businesses or the voluntary sector is anticipated, as the changes pertain specifically to social security regulations. Guidance for staff and local authorities will be updated to reflect the new regulations, which come into force on 22nd July 2025.

Consultation and Feedback

The changes have been consulted with the Social Security Advisory Committee and local authority associations, both of which raised no objections. This proactive approach underscores the government's commitment to ensuring justice and financial support for those wrongfully convicted.

This legislative move aligns with previous measures to disregard similar compensatory payments, such as those related to the Grenfell Tower tragedy and the Post Office Horizon IT scandal, emphasizing a consistent policy approach to supporting victims of systemic failures.