The government has announced plans to close a loophole that allows serious criminals sentenced to hospital orders to continue receiving benefits, including Universal Credit payments of up to £800 per month. Under current rules, offenders in hospital can claim full benefits, while those in prison on the same sentence are barred from most claims.
Prime Minister Keir Starmer stated: “It cannot be right that offenders convicted of the most serious crimes continue to receive benefits they don’t need at the expense of the taxpayer. I’m determined to do whatever it takes to stand up for victims, protect taxpayers, and ensure support goes to those who genuinely need it.”
The loophole was highlighted by families of victims of the 2023 Nottingham attacks, including Grace O’Malley-Kumar, Barnaby Webber, and Ian Coates. Dr Sanjoy Kumar and Dr Sinead O’Malley, parents of Grace, welcomed the move, calling it “decisive and bold departmental leadership”.
Work and Pensions Secretary Pat McFadden said: “I don’t think there’s a single household in Britain who believes it’s right that convicted criminals receive thousands of pounds a year in benefits. It’s unfair to victims’ families and to taxpayers.” He confirmed the government will engage with victims’ groups and mental health experts on the proposals.
The Department for Work and Pensions (DWP) has not yet estimated how many offenders will be affected or the potential savings. Offenders will continue to receive free care and mental health support from the NHS following any change.
