The Government has confirmed plans to close the so-called 'double provision' benefit loophole, which allows criminals including killers and sex offenders detained in psychiatric hospitals to claim hundreds of pounds each month for living expenses while receiving NHS psychiatric care.
Regulations laid before Parliament on Tuesday aim to prevent serious criminals from receiving up to £800 a month in Universal Credit over a number of years, saving an estimated tens of millions of pounds every year. The Government stated that the announcement follows consultation with victims' families and experts as part of its commitment to "put fairness back at the heart of the welfare system".
New DWP regulations
The new regulations are expected to take effect early next year, subject to parliamentary approval. Work and Pensions Secretary 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."
The parents of Barnaby Webber and Grace O'Malley Kumar, who were killed by Valdo Calocane in Nottingham in 2023, gave a warm welcome to the announcement. Calocane was convicted of manslaughter on the basis of diminished responsibility.
Call for fairness
Emma Webber, Barnaby's mother, 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, Miss O'Malley-Kumar's father, said: "Our campaign has always been about accountability and fairness. 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."
Kennedi Westcarr-Sabaroche was killed by her partner Gogoa Lois Tape, who received an indefinite hospital order after pleading guilty to manslaughter by reason of diminished responsibility. The victim's mother Linda Westcarr said: "I believe it is right that the Government reviews benefit entitlement for those who have committed the most serious offences, particularly where public money, funded by taxpayers, is involved. For many victims' families, the question of whether serious offenders should continue to receive benefits raises understandable concerns about fairness, accountability and the values we uphold as a society. In my view, this is not simply a question of policy, it is also a matter of moral responsibility and ensuring that the impact on victims and their families is properly recognised."
She added: "Kennedi mattered. Her life mattered. The voices of victims' families must be heard, and their suffering must never be overlooked when decisions are made about the consequences of serious crime."
Who the DWP changes will affect
The proposed regulations apply to individuals subject to a Section 37 order under the Mental Health Act 1983 and a Section 57A order under the Criminal Procedure (Scotland) Act 1995. The offences covered include manslaughter, attempted murder, wounding with intent to cause grievous bodily harm, rape, assault by penetration and rape of a child under 13.
Murder is excluded as a hospital order cannot be applied given that the offence carries a mandatory life sentence. The regulatory amendment is anticipated to affect around 2,500 offenders currently hospitalised and roughly 200 per year going forward, according to the Government.
The full financial implications of the approach are set to be published as part of the 2026 budget on October 28. The NHS will continue to deliver appropriate mental health care to those offenders affected by the changes.
Helen Whately, the shadow work and pensions secretary, said: "Killers and rapists should not pocket benefits from a hospital bed. Labour has taken all year to stop a loophole it promised to close. And tens of millions saved barely makes a dent in the benefits bill Labour has let spiral out of control. The Conservatives would make universal credit a conditional, time-limited benefit, so taxpayers' money goes only to those who genuinely need it."
