Criminals in hospital to lose benefits as Labour closes ‘loophole’
Serious offenders receiving up to £800 a month in benefits could soon lose their rights under Labor proposals to close a loophole in welfare rules.
Under current rules, an offender sentenced to a hospital order can be paid the full award for universal credit, although a person in prison for the same sentence is barred from most benefits.
The government has promised to eliminate this “loophole” by ensuring both groups of criminals are subject to the same rules.
Prime Minister Keir Starmer said: “It cannot be right that criminals convicted of the most serious crimes continue to receive benefits they do not need at taxpayers’ expense.
“I am committed to doing whatever it takes to stand up for victims, protect taxpayers and ensure support goes to those who truly need it.”
This gap has previously been raised by the families of the victims of the 2023 Nottingham attacks – Grace O’Malley-Kumar, Barnaby Webber and Ian Coates – who called for it to be addressed.
Work and Pensions Secretary Pat McFadden said: “I don’t think there is a single household in England that believes it is right for convicted criminals to receive thousands of pounds a year in benefits.
“This is unfair to the families of the victims and the taxpayers whose hard-earned money ends up in the pockets of criminals, and is contrary to our values – we do not reward acts of violence.
“That’s why I’m taking action to right what’s wrong with our benefits system, providing fairness to taxpayers while supporting people who really need it.”
Grace O’Malley-Kumar’s parents, Dr Sanjoy Kumar and Dr Sinead O’Malley, said: “We are delighted to hear this announcement from the Secretary of State.
“This is what decisive and courageous departmental leadership looks like for the families who campaign for us. Pat’s actions benefit our country and our communities. As a result, our country now leads many countries in Europe on this issue.”
Linda and Leon Westcarr, mother and uncle of Kennedi Westcarr-Sabaroche, who was murdered by her partner in 2024, said: “We welcome this overdue reform of the benefits system, which corrects a clear injustice that has caused real harm for far too long.”
The Department for Work and Pensions (DWP) said it would consult victims’ groups and mental health experts on the proposals. Offenders will continue to receive free care and mental health support from the NHS following any changes.
There was no official estimate of how many offenders would be affected or savings to the government. A criminal living in a single household and over the age of 25 with universal credit and its high health element can currently receive around £823 a month.
Julian Hendy, of the charity Hundred Families, which supports families following mental health-related murders, said: “This is very welcome news. We have long argued that making welfare payments to people who commit serious violent crimes is wrong and cannot be justified. They are criminals on hospital orders who have no costs or need for such payments.”
