Hospital-detained offenders set to lose Universal Credit under proposed rules

People detained in hospital under certain criminal court orders are set to lose access to Universal Credit under new rules the government plans to put before Parliament on Tuesday.

The change is intended to stop serious offenders receiving benefits while the NHS pays for their accommodation and care. The government estimates it will save tens of millions of pounds a year. The regulations still require parliamentary approval and are expected to take effect early next year. [1]

The rules would apply to people subject to hospital orders under Section 37 of the Mental Health Act 1983 in England and Wales, and Section 57A of the Criminal Procedure (Scotland) Act 1995. Offences covered include manslaughter, attempted murder, rape and assault by penetration. Murder is excluded because a hospital order is not an available sentence for that offence. [1]

The government says about 2,500 people already in hospital would be affected, with around 200 more each year. It has said full financial details will be published alongside the 2026 Budget on 28 October. [1]

The announcement follows campaigning by families of people killed by offenders detained in psychiatric hospitals. Emma Webber, whose son Barnaby was killed in the 2023 Nottingham attacks, called the change “long overdue”. Barnaby Webber, Grace O’Malley-Kumar and Ian Coates were killed by Valdo Calocane, who was convicted of manslaughter on the grounds of diminished responsibility and detained in a high-security hospital. [1]

Linda Westcarr, whose daughter Kennedi was killed in 2024, also backed the proposal, saying it raised questions of fairness and accountability. Her partner, Gogoa Lois Tape, was given an indefinite hospital order after pleading guilty to manslaughter by reason of diminished responsibility. [1]

Work and Pensions Secretary Pat McFadden said the rules would end what he described as unfair “double” taxpayer support. Shadow Work and Pensions Secretary Helen Whately welcomed the move but criticised the government for taking a year to act, and said the savings would make little difference to the overall benefits bill.