Serious offenders detained in hospital to lose benefits under new regulations

Serious offenders detained in hospital under a hospital order will no longer receive taxpayer-funded benefits, the government has announced, closing what it calls a “double provision” loophole where offenders have their living costs met by the NHS while also claiming benefits (Gov.UK).

Regulations laid in Parliament on Tuesday 20 October 2026 will strip Universal Credit, Pension Credit, State Pension and Employment and Support Allowance from patients detained under a Section 37 order of the Mental Health Act 1983 (England and Wales) or a Section 57A order of the Criminal Procedure (Scotland) Act 1995, subject to parliamentary approval (Gov.UK). The change takes effect early next year.

Under the current system, an offender on Universal Credit — single household, over 25, on the LCWRA rate — could receive over £800 a month, amounting to thousands of pounds over several years. The government says the move will affect around 2,500 offenders already in hospital and roughly 200 a year in future, saving the “low tens of millions” annually, with full financials published alongside the Budget on 28 October (Gov.UK).

The in-scope offences cover manslaughter, attempted murder, wounding with intent to cause grievous bodily harm, rape, assault by penetration, rape of a child under 13 and other serious sexual offences. Murder is excluded because a hospital order is not an available disposal for an offence carrying a mandatory life sentence.

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 move follows campaigning by victims’ families, including the parents of Barnaby Webber and Grace O’Malley-Kumar, killed by Valdo Calocane in Nottingham in 2023. Calocane was convicted of manslaughter on the basis of diminished responsibility (Brit Brief).

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, Grace 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 always been about what is good for the country.”

Shadow work and pensions secretary Helen Whately 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 British Eye).

The government says the decision will not affect anyone detained under the Mental Health Act 1983 who has not committed an offence, and that the NHS will continue to provide appropriate mental health support to those affected.