Miscarriage-of-justice victims will no longer lose benefits

People who’ve been wrongfully convicted will now be able to claim benefits without their compensation payments affecting what they get.

Until now, victims of miscarriages of justice risked losing out on vital support because the money they received in compensation could push them over the savings limit for means-tested benefits like universal credit, pension credit and housing benefit.

But thanks to new legislation that came into force this week (22 July 2025), that’s changing.

A step towards fairness

The government says the aim is to give people a fairer chance to rebuild their lives after being failed by the justice system.

Minister for social security and disability Stephen Timms said:

“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.”

The change means compensation paid through miscarriage-of-justice schemes will no longer count when applying for:

• universal credit
• pension credit
• housing benefit
• income-based jobseeker’s allowance
• income-related employment and support allowance
• income support

Recognition and redress

The announcement comes alongside a 30% increase in the maximum amount victims can receive in compensation, taking the top payout to £1.3m for people who were wrongfully imprisoned long-term.

Alex Davies-Jones, minister for victims, said the changes are about more than just money:

“Miscarriages of justice steal irreplaceable time and devastate lives... I hope these changes go some way in making the future brighter than the past for those who have already lost so much.”

Part of a wider shift

This reform follows similar changes already in place for other groups who’ve received government compensation, including victims of the:

• infected blood scandal
• Horizon Post Office scandal
• LGBT veterans dismissed from the armed forces

Need more info?

If you’ve received compensation for a miscarriage of justice and think this might affect your benefit entitlement, it’s worth checking to see what you could now be eligible for.