Hospitalised Offenders to Lose Benefits

Killers and serious sexual offenders detained in psychiatric hospitals in the UK could lose access to Universal Credit under proposed government regulations, following a campaign by victims’ families who say the payments raise serious concerns about fairness and accountability.

Government moves to close benefits loophole

The regulations, expected to be presented to Parliament on Tuesday, aim to end what the government describes as a system of “double provision”. Under the existing arrangements, some serious offenders receiving psychiatric treatment in hospital can continue to receive up to £800 a month in Universal Credit, even though their accommodation and meals are funded by the National Health Service.

The government estimates that ending these payments could save tens of millions of pounds annually. The proposed changes are expected to take effect early next year, subject to parliamentary approval.

Ministers say the reform is intended to ensure public funds are distributed fairly and that taxpayers are not paying twice towards the living costs of people detained under criminal hospital orders.

The proposals follow campaigning by families whose loved ones were killed by offenders subsequently detained in psychiatric hospitals. Their efforts have brought renewed attention to whether people subject to hospital orders for serious crimes should remain eligible for benefits while receiving state-funded treatment.

Families of Nottingham victims welcome changes

The parents of Barnaby Webber and Grace O’Malley-Kumar, two students killed in Nottingham in June 2023, welcomed the announcement.

Webber, O’Malley-Kumar and caretaker Ian Coates were stabbed to death on 13 June 2023 by Valdo Calocane, who had been diagnosed with paranoid schizophrenia in 2020.

Calocane was convicted of manslaughter on the grounds of diminished responsibility and detained at a high-security hospital.

Barnaby’s mother, Emma Webber, described the proposed reform as long overdue, arguing that receiving hospital treatment should not remove accountability for serious crimes.

She said it was unacceptable that Calocane and similar offenders had received taxpayers’ money through benefits while their treatment and accommodation were already being funded publicly.

Webber added that a hospital bed did not erase the seriousness of the crimes committed or the suffering caused to victims’ families. She said closing the loophole would provide a basic level of accountability that affected families deserved.

Grace’s father, Dr Sanjoy Kumar, also welcomed the move, saying his family’s campaign had focused on fairness and accountability.

Kumar argued that offenders detained under treatment orders already place significant costs on taxpayers. He questioned why they should continue receiving benefits while detained, particularly when housing and welfare assistance can be provided following their release.

Another family supports the campaign

Linda Westcarr, whose daughter Kennedi Westcarr-Sabaroche was killed by her partner, Gogoa Lois Tape, in Hackney, east London, in April 2024, also campaigned for benefits paid to offenders in psychiatric hospitals to be stopped.

Tape pleaded guilty to manslaughter by reason of diminished responsibility and received a hospital order detaining him indefinitely.

Westcarr said the issue raised legitimate concerns about fairness, accountability and the values reflected in public policy. She argued that the consequences for victims and their families should be properly recognised when decisions are made about financial support for serious offenders.

Her comments added to calls for the government to reconsider benefit eligibility for people detained in hospital following serious criminal offences.

Ministers defend reform as opposition criticises delay

Work and Pensions Secretary Pat McFadden said the government was delivering on its commitment to address what it considers an unfair arrangement.

He argued that taxpayers had effectively been paying twice for the living costs of violent offenders, while victims and their relatives continued to bear the consequences of their crimes.

McFadden said the change would help ensure that the welfare system was fair and directed towards people who genuinely needed support.

However, Shadow Work and Pensions Secretary Helen Whately criticised the time taken to introduce the proposals. She said killers and rapists should not receive benefits while detained in hospital and argued that the estimated savings would make only a limited difference to the overall benefits bill.

Whately also outlined the Conservatives’ position that Universal Credit should become conditional and time-limited, with public money directed towards those who genuinely need it.

Which offenders will be affected?

The proposed regulations apply to individuals subject to a Section 37 order under the Mental Health Act 1983 in England and Wales, or a Section 57A order under Scotland’s Criminal Procedure 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 because a hospital order is not an available sentence for that offence.

The government estimates that approximately 2,500 offenders already detained in hospital could be affected, alongside around 200 additional cases each year. Further details about the full financial impact are expected to be published as part of the 2026 Budget on 28 October.