Compensation payments for miscarriage of justice and means-tested benefits
Published 11 July 2025
© Crown copyright 2025
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This publication is available at https://www.gov.uk/government/publications/treatment-of-compensation-payments-for-miscarriage-of-justice-and-means-tested-benefits/compensation-payments-for-miscarriage-of-justice-and-means-tested-benefits
When someone received compensation through the miscarriage of justice compensation scheme, this was classed as capital when working out means-tested benefits. This sometimes meant they would not be eligible for means-tested benefits.
A means-tested benefit means your income and capital will usually be taken into account when calculating your eligibility.
From 22 July 2025, the Department for Work and Pensions is no longer counting this compensation as capital and income when calculating means-tested benefits in Great Britain. The same rules apply to people living in Northern Ireland.
The United Kingdom Government and Devolved Governments compensation schemes for miscarriages of justice gives compensation when someone has been convicted of a criminal offence and:
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their conviction has been reversed
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a new or newly discovered fact shows beyond reasonable doubt that there has been a miscarriage of justice
1. Who may be affected
If you have received a compensation payment for a miscarriage of justice, you might be affected if you:
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currently claim means-tested benefits
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could not claim means-tested benefits because you had too much capital or income
2. What to do next
If you are affected, what you do next will depend on:
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if you currently claim means-tested benefits
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if you do not currently claim means-tested benefits
2.1 If you currently claim means-tested benefits
From 22 July 2025, you need to report a change of circumstances if you claim:
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Universal Credit
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Pension Credit
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Housing Benefit
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income-based Jobseeker’s Allowance
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income-related Employment and Support Allowance
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Income Support
Your change of circumstances should explain you’ve previously received compensation through the miscarriage of justice compensation scheme, and that this is no longer classed as capital.
Your entitlement to these benefits will not be affected, but you will need to provide a copy of your compensation award.
2.2 If you do not currently claim means-tested benefits
From 22 July 2025, check your eligibility for:
Any compensation payments you received will not be taken into account as capital when calculating entitlement to these benefits.
You will need to provide a copy of your compensation award as part of the application process.