The government has announced it will finally end a controversial loophole that allowed some of the UK's most dangerous convicted criminals to claim state benefits while serving hospital orders.
What Was the Loophole?
Until now, offenders detained in secure hospitals, rather than traditional prisons, could legally receive Universal Credit payments of more than £800 a month. This starkly contrasted with the rules for the mainstream prison population, where inmates are barred from claiming any state benefits.
The anomaly meant individuals convicted of the gravest crimes, including murder and manslaughter, could accumulate thousands of pounds in taxpayer money during their sentences. The payments were ostensibly for items like clothing, books, and electronic equipment, despite the state already providing full bed, board, and medical treatment.
The Nottingham Case That Sparked Change
The issue was thrust into the spotlight following the Nottingham triple killings in 2023. Valdo Calocane, who murdered students Barnaby Webber and Grace O'Malley-Kumar, and school caretaker Ian Coates, was sentenced to a hospital order. It was revealed he could claim up to £360 a month in Universal Credit from his high-security hospital in Merseyside.
This revelation caused public outcry and led to sustained campaigning by victims' families, who argued it was a profound injustice that offenders were profiting from their crimes.
Government and Political Reaction
Work and Pensions Secretary Pat McFadden stated his department was acting to correct a clear wrong in the system. "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," he said. He emphasised the reform was about delivering fairness to the taxpayer and ensuring support goes to those who genuinely need it.
Prime Minister Sir Keir Starmer echoed this sentiment, stating it "cannot be right" that serious offenders receive unneeded benefits at public expense. He said the proposals would restore basic fairness and common sense to the social security system.
Victims' Families Welcome the Reform
The families of those affected by the loophole have welcomed the long-awaited change. The parents of Grace O'Malley-Kumar said they were "delighted" by the announcement, noting that good was now being done in their daughter's name.
Similarly, the family of Kennedi Westcarr-Sabaroche, murdered in 2024, welcomed the "long-overdue reform" which corrects an injustice that "has caused real harm for too long."
How the New Rules Will Work
The government will now seek expert advice on formally removing benefits from those convicted of serious offences—including manslaughter and rape—who are held in a hospital setting. It is crucial to note that the change will not affect individuals sectioned under mental health laws who have not committed a criminal offence. Their eligibility for welfare support will remain unchanged.
This move closes a chapter that many saw as a glaring inequity, ensuring taxpayer funds are directed towards supporting vulnerable people, not subsidising those who have committed acts of severe violence.
