The Department for Work and Pensions (DWP) has confirmed plans to close a Universal Credit loophole that allows some serious offenders to receive more than £800 a month in benefits while being held in hospital.
Under current rules, offenders detained in psychiatric hospitals under court orders can continue receiving benefits, despite their accommodation, food and treatment already being covered by the NHS. The Government is now moving to stop the payments for people convicted of certain serious violent and sexual offences.
New regulations laid before Parliament
The DWP confirmed on October 20 that new regulations had been laid before Parliament, with the changes expected to come into force early next year. The move could affect around 2,500 offenders already in hospital, as well as approximately 200 new cases each year.
It follows campaigning by families of victims, including those killed in the Nottingham attacks in June 2023. Grace O'Malley-Kumar, Barnaby Webber and Ian Coates were killed by Valdo Calocane, who was later given an indefinite hospital order.
Government response
Work and Pensions Secretary Pat McFadden said: "We said we'd act to tackle this gross unfairness and we're delivering on that promise." He added: "For too long these violent criminals have had their living costs paid by the taxpayer twice over, while their victims and families paid the price."
The DWP said the change would bring the rules for certain offenders detained in hospitals more closely into line with those serving prison sentences. People transferred from prison to mental health hospitals are already prevented from claiming the benefits covered by the proposals.
Scope of the changes
The new restrictions would also cover certain State Pension, Pension Credit and Employment and Support Allowance payments. However, the changes will not affect people detained under the Mental Health Act who have not committed an offence. Those affected will also continue to receive appropriate mental health treatment through the NHS.
Emma Webber, whose son Barnaby was killed in Nottingham, welcomed the announcement. She said: "This is long overdue, and simply the right thing to do." The Government initially estimated that closing the loophole could save tens of millions of pounds annually, although the final financial impact will depend on implementation. The regulations remain subject to parliamentary approval.
