From today, the UK has introduced a “benefit disregard” for compensation awarded under UK government and devolved government compensation schemes for miscarriages of justice.

The benefit disregard means such compensation will no longer be taken into account when applying for means-tested benefits such as Universal Credit, pension credit and housing benefit.

Legislation was previously introduced to protect compensation awarded to victims of the infected blood scandal, the Horizon Post Office scandal and LGBT people dismissed from the Armed Forces.

There is no benefit disregard for payments made to UK residents under Irish government schemes, though a backbench MP has proposed legislation which would introduce one.

The maximum payout for long-term wrongful imprisonment was also this month increased by 30 per cent to £1.3 million in England, Wales and Northern Ireland.

Sir Stephen Timms, the UK minister for social security and disability, said: “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.”