The proposed regulations, expected to come into force early next year subject to parliamentary approval, would end universal credit payments of up to £800 a month for criminals subject to hospital orders under the Mental Health Act. The government said the move would save an estimated tens of millions of pounds annually and follows engagement with victims' families.
The change was prompted in part by the case of Valdo Calocane, who was detained at a high-security hospital after killing Barnaby Webber, Grace O'Malley-Kumar and Ian Coates in Nottingham in June 2023. Calocane, diagnosed with paranoid schizophrenia in 2020, was convicted of manslaughter on the basis of diminished responsibility.
Barnaby's mother, Emma Webber, said the announcement was long overdue and "simply the right thing to do", calling it "a disgrace" that Calocane and offenders like him had received taxpayers' money. Grace's father, Dr Sanjoy Kumar, said the campaign had been about accountability and fairness, arguing that on the principle of fairness alone, taxpayers should not fund benefits while offenders are incarcerated.
The mother of Kennedi Westcarr-Sabaroche, killed by her partner Gogoa Lois Tape in Hackney in April 2024, also lobbied for the change. Kennedi's mother, Linda Westcarr, said it was a matter of moral responsibility and ensuring the impact on victims and their families is properly recognised.
Work and Pensions Secretary Pat McFadden said the government had promised to act to tackle the "gross unfairness" and was delivering on that promise. Shadow Work and Pensions Secretary Helen Whately said Labour had taken all year to close a loophole it promised to close, and that the tens of millions saved "barely makes a dent" in the benefits bill.
The regulations apply to individuals subject to a Section 37 order under the Mental Health Act 1983 and a Section 57A order under the Criminal Procedure (Scotland) Act 1995. Offences covered include manslaughter, attempted murder, wounding with intent to cause grievous bodily harm, rape, assault by penetration and rape of a child under 13. Murder is not included because a hospital order is not an available sentence for that offence.
The government said about 2,500 offenders already in hospital and approximately 200 a year in future would be affected, with full financial impacts due to be published as part of the 2026 Budget on 28 October.