The Department for Work and Pensions (DWP) has unveiled a major policy shift aimed at ending state benefit payments to convicted serious criminals who are detained in hospital settings.
Closing the Loophole: Ending Payments to Offenders
Under the current system, offenders held in hospitals under court orders for crimes such as manslaughter, rape, and other violent or sexual offences can continue to receive over £800 per month in Universal Credit. This is despite their accommodation, food, and treatment costs being fully covered by the state. The proposed reform seeks to align their treatment with that of prisoners, who are already barred from claiming benefits.
Work and Pensions Secretary Pat McFadden stated on 16 January 2026: "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." Ministers argue the change is essential to restore fairness for victims and taxpayers, ensuring acts of violence are not financially rewarded.
Victims' Families and Policy Details
The issue was brought to prominence by families affected by high-profile cases, including the loved ones of Kennedi Westcarr-Sabaroche and the victims of the Nottingham attacks – Grace O’Malley-Kumar, Barnaby Webber, and Ian Coates. Their campaigning highlighted what the government now calls an unfair anomaly in the welfare system.
Officials have been careful to clarify the scope of the change. The crackdown will specifically target criminals detained under court orders. It will not affect patients who have been sectioned for mental health reasons without a criminal conviction; they will retain their financial support.
Next Steps and Consultation
Given the complexity and sensitivity of the issue, Pat McFadden will now gather views from experts on the practical implementation of removing Universal Credit from this specific group. The government's intent is clear: to ensure that taxpayers' money does not fund the lifestyles of those committed for the most serious crimes, while protecting the vulnerable.
This move represents a significant tightening of the welfare rules, designed to close a loophole that has allowed substantial sums – potentially thousands of pounds over a long detention – to be paid to individuals whose basic needs are already met by the state.
