“People cleared after wrongful convictions are ‘victims of the state’,” a justice minister told the House of Lords last month. With the order now in force, ministers say the change is about basic fairness and helping people rebuild after years lost to wrongful convictions. Hansard records the exchanges in detail.

Under the order made this week, the maximum compensation rises by 30%: up to £1.3 million for those who spent at least 10 years in custody and up to £650,000 in other qualifying cases. The uplift also applies to the Court Martial scheme, bringing the armed forces into line. It’s the first increase to the caps since they were set in 2008, according to GOV.UK and the ministerial statement in Hansard.

Who pays depends on where a case sits. The Secretary of State handles England and Wales, plus a small number of Northern Ireland cases tied to sensitive national security issues. Northern Ireland’s Department of Justice continues to run its own scheme and its caps are unchanged by this Westminster order, the minister confirmed to peers.

One key element has not moved. The separate annual limit on loss‑of‑earnings remains pegged to one‑and‑a‑half times median annual earnings at the time of assessment, as set out in section 133A of the Criminal Justice Act 1988. In practice, assessors still decide awards case by case.

During scrutiny, peers questioned whether a 30% rise keeps pace with costs after years of price increases. They noted in the Lords that CPI inflation since 2008 is around 64%, and that from 2016 to 2024 only 39 of 133 applicants were awarded compensation at a total cost of £2.4 million. Those concerns are on the parliamentary record.

Two recent policy shifts also matter for anyone trying to rebuild their life after a quashed conviction. Since 22 July 2025, the Department for Work and Pensions has stopped counting miscarriage‑of‑justice compensation when deciding eligibility for means‑tested benefits. And in Belfast, the Department of Justice has ended deductions for so‑called “saved living expenses” in new cases-changes set out by DWP and the NI Department of Justice.

For readers across the North, the takeaway is straightforward. Firms in Manchester, Leeds and Newcastle are expected to revisit live and recently concluded assessments, especially where time served pushes close to the 10‑year threshold. The new ceiling won’t automatically increase every award, but it widens the headroom for the most serious cases.

Serving personnel and veterans are covered too. The Court Martial scheme now mirrors the civilian uplift, which will matter to families with forces ties across our region once convictions are quashed and eligibility is confirmed.

Ministers told peers they will wait for the Law Commission’s wider review of criminal appeals and compensation before considering further changes. Initial findings are expected in 2026. Campaigners will watch to see whether government commits to regular reviews, rather than another long wait between uprates.