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Miscarriage of Justice Payouts Exempt From Means-Tested Benefits as Cap Increases

The reform is designed to rebuild trust in legal and social security systems by removing financial hurdles for those cleared after wrongful convictions.

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Overview

  • Under the new rules, compensation payouts for miscarriages of justice are disregarded when assessing eligibility for six means-tested benefits: income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Income Support, Housing Benefit, Pension Credit and Universal Credit.
  • The compensation ceiling for those wrongfully jailed for more than ten years has been increased by 30%, rising from £1 million to £1.3 million.
  • Social Security Minister Sir Stephen Timms described the reforms as steps toward rebuilding trust in both the justice system and social security framework.
  • Campaigner Andrew Malkinson praised the benefit exemption as ending a stark injustice but criticised the £1.3 million cap as insulting and urged the government to drop the requirement to prove innocence a second time.
  • Government data show that only 39 of 591 applications received between April 2016 and March 2024 were approved, underscoring persistent hurdles in the compensation process.