The Department for Work and Pensions (DWP) has announced plans to close a "benefit loophole" that allows prisoners transferred to mental health hospitals to claim Universal Credit, a move that could save taxpayers millions of pounds each year.
Under current rules, people moved from prison to mental health hospitals are banned from claiming Universal Credit. However, a loophole means some prisoners, including violent and sexual offenders, receive free accommodation and living costs funded by the NHS while also being able to access up to £800 in Universal Credit.
Ending double provision for offenders
The new regulations would end this "double provision" for some of the most serious criminals placed in mental health hospitals. The proposals were presented to parliament yesterday and are subject to parliamentary approval. If approved, they will come into force next year for both existing and future cases from the point the regulations started.
Secretary of State for Work and Pensions, Pat McFadden, said: "We said we'd act to tackle this gross unfairness and we're delivering on that promise. 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. That ends today because victims and taxpayers deserve a system that is fair and supports only those who genuinely need it."
Support from victims' families
The proposals have been supported by families of victims of serious crimes, including those affected by the 2023 Nottingham attacks. Those attacks saw students Barnaby Webber murdered alongside his friend Grace O'Malley-Kumar and school caretaker Ian Coates by Valdo Calocane in Nottingham on June 13, 2023.
Barnaby Webber's mother, Emma Webber, said: "This is long overdue, and simply the right thing to do. It was a disgrace that Calocane and offenders like him have ever received taxpayers' money. A hospital bed does not erase the egregious crimes committed, nor the destruction they have caused. Closing this loophole finally delivers some basic accountability that victims deserve."
Dr Sanjoy Kumar, father of Grace O'Malley-Kumar, said: "Our campaign has always been about accountability and fairness. Offenders with treatment orders already cost the taxpayer an enormous amount. On release, every offender gets help with housing and benefits. On the principle of fairness alone, we do not see why taxpayers should fund benefits while they are incarcerated. We are grateful to the Secretary of State Pat McFadden for taking action and listening to our campaign which has always been about what is good for the country."
The new regulations are now awaiting parliamentary approval. If passed, they will apply to both existing and future cases from the point the regulations came into effect.
