Universal Credit, Pension Credit and Housing Benefit change to make more people eligible
From July 22, a change in the law will allow compensation for miscarriages of justice to be excluded from benefit assessments. These compensations are awarded to people who have been wrongfully convicted and can amount to substantial figures.
In the past, such compensation was considered part of a person's savings or income, impacting their eligibility for benefits. For instance, receiving over £16,000 in compensation would automatically rule out eligibility for Universal Credit, regardless if they meet the other qualifying factors.
The updated legislation will now ensure that these payouts are disregarded during the assessment process, potentially allowing access to various means-tested benefits, including income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Income Support, Housing Benefit, Pension Credit, and Universal Credit.
Sir Stephen Timms MP, Minister for Social Security and Disability, commented: '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.
'That's why we're bringing in this milestone legislation, and I encourage anyone who has received a miscarriage of justice compensation payment to come forward, so we can ensure they receive the help they are entitled to.'
Those who believe they may be impacted by this alteration but are already receiving means-tested benefits will need to declare a change in circumstances to ensure they're getting the proper amount following this legal change. People who might be affected but aren't currently claiming benefits are urged to verify their benefit eligibility online.
In both situations, you'll be required to provide a copy of your compensation award during the application or change of circumstances procedure. Further details about the modification can be found on the Gov.uk website.
This benefit law change comes after an uplift to the maximum compensation sum that can be granted to a miscarriage of justice victim. This now stands at a ceiling of £1.3million for those who have been wrongfully jailed for over ten years.
Minister for Victims and Violence Against Women and Girls, Alex Davies-Jones, declared: '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. We can't turn back the clock, but I hope these changes go some way in making the future brighter than the past for those who have already lost so much.'
Campaigners had been urging for reforms like this, including Andrew Malkinson, as reported by the Independent. Malkinson, who was falsely accused of rape and spent 17 years behind bars before clearing his name, has spoken out about the law changes.
The campaigner described the benefit update as "ends a stark injustice" but highlighted that further action is needed, labelling the £1.3 million cap as "insulting". Earlier this month, he told the publication: "I remain determined to challenge the completely unfair cap on compensation for the wrongfully convicted – and the ridiculous requirement that a person in my position be required to prove their innocence a second time to get compensated."
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