UK Closes Benefit Loophole for Hospitalized Convicts

The Department for Work and Pensions is closing a benefit loophole that allowed convicts sentenced to psychiatric hospital orders to receive Universal Credit payments of up to £800 per month. Under the previous system, offenders—including those convicted of violent and sexual crimes—received free accommodation and living costs from the NHS while simultaneously collecting state benefits. Some offenders accumulated savings of up to £16,000 before their release.

This policy change aligns the treatment of hospital-detained offenders with prisoners, who are already prohibited from claiming state benefits. The decision follows public pressure and high-profile incidents, such as the 2023 knife attacks in Nottingham perpetrated by Valdo Calocane.

Secretary of State for Work and Pensions Pat McFadden stated the move addresses a "gross unfairness" to victims and taxpayers. He noted that violent criminals had their living costs paid by the taxpayer twice over while their victims and families paid the price, asserting that the new system will support only those who genuinely need it.