SOCIAL SECURITY Citation, commencement and extent 1 1 These Regulations may be cited as the Social Security (Income and Capital Disregards) (Amendment) (No. 2) Regulations 2025 and come into force on 22nd July 2025. 2 These Regulations extend to England and Wales and Scotland. Amendment of the Income Support (General) Regulations 1987 2 1 The Income Support (General) Regulations 1987 are amended as follows. 2 In regulation 2(1) (interpretation)— a after the definition of “MFET Limited” insert— “ miscarriage of justice compensation payment ” means— a payment made under section 133(1) of the Criminal Justice Act 1988 ; or any other payment made by the Secretary of State, the Scottish Ministers or, in Northern Ireland, the Department of Justice, for the purpose of compensating a person— for a miscarriage of justice in criminal proceedings, or for being wrongfully charged with a criminal offence; ; b in the definition of “qualifying person” for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . 3 In regulation 42(4ZB) (notional income) after sub-paragraph (e) insert— ; f a miscarriage of justice compensation payment. . 4 In regulation 48(10) (income treated as capital) after sub-paragraph (af) insert— ag which is a miscarriage of justice compensation payment; . 5 In regulation 51(3B) (notional capital) after sub-paragraph (f) insert— ; g a miscarriage of justice compensation payment. . 6 In Schedule 3 (housing costs), in paragraph 18(8)(b), for “or LGBT Financial Recognition Scheme payment” substitute “, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment” . 7 In Schedule 9 (sums to be disregarded in the calculation of income other than earnings), in paragraph 39— a in sub-paragraph (1A) after paragraph (e) insert— ; f miscarriage of justice compensation payment. ; b in each of sub-paragraphs (2) to (6) for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . 8 In Schedule 10 (capital to be disregarded), in paragraph 22— a in sub-paragraph (1A) for “or LGBT Financial Recognition Scheme payment” substitute “, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment” ; b in each of sub-paragraphs (2) to (5) and (6) for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . Amendment of the Jobseeker’s Allowance Regulations 1996 3 1 The Jobseeker’s Allowance Regulations 1996 are amended as follows. 2 In regulation 1(3) (citation, commencement, interpretation and application)— a after the definition of “MFET Limited” insert— “ miscarriage of justice compensation payment ” means— a payment made under section 133(1) of the Criminal Justice Act 1988; or any other payment made by the Secretary of State, the Scottish Ministers or, in Northern Ireland, the Department of Justice, for the purpose of compensating a person— for a miscarriage of justice in criminal proceedings, or for being wrongfully charged with a criminal offence; ; b in the definition of “qualifying person” for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . 3 In regulation 105(10A) (notional income) after sub-paragraph (af) insert— ag which is a miscarriage of justice compensation payment; . 4 In regulation 110(10) (income treated as capital) after sub-paragraph (af) insert— ag which is a miscarriage of justice compensation payment; . 5 In regulation 113(3B) (notional capital) after sub-paragraph (f) insert— ; g a miscarriage of justice compensation payment. . 6 In Schedule 2 (housing costs), in paragraph 17(8)(b), for “or LGBT Financial Recognition Scheme payment” substitute “, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment” . 7 In Schedule 7 (sums to be disregarded in the calculation of income other than earnings), in paragraph 41— a in sub-paragraph (1A), after paragraph (e) insert— ; f miscarriage of justice compensation payment. ; b in each of sub-paragraphs (2) to (6) for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . 8 In Schedule 8 (capital to be disregarded), in paragraph 27— a in sub-paragraph (1A) for “or LGBT Financial Recognition Scheme payment” substitute “, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment” ; b in each of sub-paragraphs (2) to (5) and (6) for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . Amendment of the State Pension Credit Regulations 2002 4 1 The State Pension Credit Regulations 2002 are amended as follows. 2 In regulation 1(2) (citation, commencement and interpretation)— a move the definition of “LGBT Financial Recognition Scheme payment” so that it appears after the definition of “the Jobseeker’s Allowance Regulations”; b after the definition of “MFET Limited” insert— “ miscarriage of justice compensation payment ” means— a payment made under section 133(1) of the Criminal Justice Act 1988; or any other payment made by the Secretary of State, the Scottish Ministers or, in Northern Ireland, the Department of Justice, for the purpose of compensating a person— for a miscarriage of justice in criminal proceedings, or for being wrongfully charged with a criminal offence; ; c in the definition of “qualifying person” for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . 3 In Schedule 2 (housing costs), in paragraph 14(8), after paragraph (be) insert— bf any miscarriage of justice compensation payment; . 4 In Schedule 5 (income from capital), in paragraph 15— a in sub-paragraph (1A) for “or LGBT Financial Recognition Scheme payment” substitute “, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment” ; b in each of sub-paragraphs (2) to (5) and (6) for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . Amendment of the Housing Benefit Regulations 2006 5 1 The Housing Benefit Regulations 2006 are amended as follows. 2 In regulation 2(1) (interpretation)— a after the definition of “MFET Limited” insert— “ miscarriage of justice compensation payment ” means— a payment made under section 133(1) of the Criminal Justice Act 1988 ; or any other payment made by the Secretary of State, the Scottish Ministers or, in Northern Ireland, the Department of Justice, for the purpose of compensating a person— for a miscarriage of justice in criminal proceedings, or for being wrongfully charged with a criminal offence; ; b in the definition of “qualifying person” for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . 3 In regulation 42(7A) (notional income) after sub-paragraph (e) insert— ; f a miscarriage of justice compensation payment. . 4 In regulation 46(6) (income treated as capital) after “an LGBT Financial Recognition Scheme payment” insert “, a miscarriage of justice compensation payment” . 5 In regulation 49(4A) (notional capital) after sub-paragraph (f) insert— ; g a miscarriage of justice compensation payment. . 6 In regulation 74(9) (non-dependant deductions) after sub-paragraph (be) insert— bf any miscarriage of justice compensation payment; . 7 In Schedule 5 (sums to be disregarded in the calculation of income other than earnings), in paragraph 35— a in sub-paragraph (1A) after paragraph (e) insert— ; f miscarriage of justice compensation payment. ; b in each of sub-paragraphs (2) to (6) for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . 8 In Schedule 6 (capital to be disregarded), in paragraph 24— a in sub-paragraph (1A) for “or LGBT Financial Recognition Scheme payment” substitute “, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment” ; b in each of sub-paragraphs (2) to (5) and (6) for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . Amendment of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 6 1 The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 are amended as follows. 2 In regulation 2(1) (interpretation)— a after the definition of “MFET Limited” insert— “ miscarriage of justice compensation payment ” means— a payment made under section 133(1) of the Criminal Justice Act 1988; or any other payment made by the Secretary of State, the Scottish Ministers or, in Northern Ireland, the Department of Justice, for the purpose of compensating a person— for a miscarriage of justice in criminal proceedings, or for being wrongfully charged with a criminal offence; ; b in the definition of “qualifying person” for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . 3 In regulation 55(10) (non-dependant deductions) after sub-paragraph (be) insert— bf any miscarriage of justice compensation payment; . 4 In Schedule 6 (capital to be disregarded), in paragraph 16— a in sub-paragraph (1A) for “or LGBT Financial Recognition Scheme payment” substitute “, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment” ; b in each of sub-paragraphs (2) to (5) and (6) for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . Amendment of the Employment and Support Allowance Regulations 2008 7 1 The Employment and Support Allowance Regulations 2008 are amended as follows. 2 In regulation 2(1) (interpretation)— a after the definition of “MFET Limited” insert— “ miscarriage of justice compensation payment ” means— a payment made under section 133(1) of the Criminal Justice Act 1988; or any other payment made by the Secretary of State, the Scottish Ministers or, in Northern Ireland, the Department of Justice, for the purpose of compensating a person— for a miscarriage of justice in criminal proceedings, or for being wrongfully charged with a criminal offence; ; b in the definition of “qualifying person” for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . 3 In regulation 107(5A) (notional income – income due to be paid or income paid to or in respect of a third party) after sub-paragraph (e) insert— ; f a miscarriage of justice compensation payment. . 4 In regulation 112(8)(b) (income treated as capital) after paragraph (v) insert— ; vi miscarriage of justice compensation payment. . 5 In regulation 115(5A) (notional capital) after sub-paragraph (f) insert— ; g a miscarriage of justice compensation payment. . 6 In Schedule 6 (housing costs), in paragraph 19(8)(b), for “or LGBT Financial Recognition Scheme payment” substitute “, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment” . 7 In Schedule 8 (sums to be disregarded in the calculation of income other than earnings), in paragraph 41— a in sub-paragraph (1A), after paragraph (e) insert— ; f miscarriage of justice compensation payment. ; b in each of sub-paragraphs (2) to (6) for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . 8 In Schedule 9 (capital to be disregarded), in paragraph 27— a in sub-paragraph (1A) for “or LGBT Financial Recognition Scheme payment” substitute “, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment” ; b in each of sub-paragraphs (2) to (5) and (6) for “or an LGBT Financial Recognition Scheme payment” substitute “, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment” . Amendment of the Universal Credit Regulations 2013 8 1 The Universal Credit Regulations 2013 are amended as follows. 2 In regulation 76 (special schemes for compensation etc.)— a after paragraph (1C) insert— 1D This regulation also applies where a person— a receives a miscarriage of justice compensation payment or is a person for whose benefit such a payment is made; b is the partner of a person to whom sub-paragraph (a) refers, and receives a payment by or on behalf of that person which is derived from the miscarriage of justice compensation payment; c was the partner of a person to whom sub-paragraph (a) refers immediately before their death and receives a payment from their estate which is derived from a miscarriage of justice compensation payment; d in a case where a miscarriage of justice compensation payment is made to the personal representative of a deceased person (“ P ”), was P’s partner immediately before P’s death and receives a payment from P’s estate which is derived from the miscarriage of justice compensation payment. ; b in paragraph (4) after the definition of “the Horizon system” insert— “ miscarriage of justice compensation payment ” means— a payment made under section 133(1) of the Criminal Justice Act 1988; or any other payment made by the Secretary of State, the Scottish Ministers or, in Northern Ireland, the Department of Justice, for the purpose of compensating a person— for a miscarriage of justice in criminal proceedings, or for being wrongfully charged with a criminal offence; . Signed by the authority of the Secretary of State for Work and Pensions Stephen Timms Minister of State 30th June 2025 Department for Work and Pensions