Criminals in psychiatric wards to lose 'disgraceful' right to benefits - which saw £800 a month in Universal Credit handed to killers in hospital

More than 2,500 serious offenders including killers will be stripped of their benefits following a campaign by victims' families. 

New rules will close a loophole which allows offenders who are detained in hospital rather than in jail to collect more than £800 a month in Universal Credit – amounting to thousands in taxpayer cash over a long sentence.

It follows a campaign by the families of the victims of paranoid schizophrenic Valdo Calocane who is serving a hospital order after killing three people in Nottingham. 

While prisoners are banned from claiming state benefits, convicted criminals who receive treatment in psychiatric hospitals remain eligible for welfare. 

The changes will end the so-called 'double provision' whereby offenders can claim benefits at the taxpayer's expense despite already having their bed and board funded by the taxpayer through the NHS.

The proposed change is expected to save tens of millions of pounds each year. 

Emma Webber, whose son, Barnaby, 19, was one of the three victims stabbed to death by Calocane in Nottingham in June 2023, said it was long overdue. 

'It was a disgrace that Calocane and offenders like him have ever received taxpayers' money,' she said. 

'A hospital bed does not erase the egregious crimes committed, nor the destruction they have caused. Closing this loophole finally delivers some basic accountability that victims deserve.' 

Calocane is serving an indefinite hospital order after pleading guilty to manslaughter on the grounds of diminished responsibility and is currently eligible for benefits. 

Dr Sanjoy Kumar, whose daughter Grace O'Malley Kumar, 19, was also killed by Calocane, said: 'Our campaign has always been about accountability and fairness. 

'Offenders with treatment orders already cost the taxpayer an enormous amount. On release, every offender gets help with housing and benefits.

'On the principle of fairness alone, we do not see why taxpayers should fund benefits while they are incarcerated.'

Convicted killers and serious sexual offenders detained in hospital are among those who will lose their entitlement to benefits from early next year. 

They include those who were convicted of manslaughter, attempted murder, rape and sexual assault. 

The regulations will be laid in Parliament on October 20 and remain subject to parliamentary approval.

Currently an offender could receive more than £800 a month. The change is expected to affect 2,500 offenders already in hospital and approximately 200 a year in future.

The government said it was about ensuring fairness in the welfare system and delivered on a promise made earlier this year to close the loophole. 

Secretary of State for Work and Pensions Pat McFadden said: 'We said we'd act to tackle this gross unfairness and we're delivering on that promise.

'For too long these violent criminals have had their living costs paid by the taxpayer twice over, while their victims and families paid the price.

'That ends today because victims and taxpayers deserve a system that is fair and supports only those who genuinely need it.'

Leon Westcarr whose niece Kennedi Westcarr-Sabaroche, 25, was killed by her partner Gogoa Lois Tape, 28, also welcomed the changes. 

Tape, who used cannabis and had 'undiagnosed' schizophrenia at the time of the attack, was given a hospital order after pleading guilty to manslaughter by reason of diminished responsibility. 

Mr Westcarr said: 'The loss of my niece can never be undone, but I am encouraged that this long-standing injustice has been recognised and addressed.'

Ms Westcarr-Sabaroche's mother Linda Westcarr said: 'For many victims' families, the question of whether serious offenders should continue to receive benefits raises understandable concerns about fairness, accountability and the values we uphold as a society. In my view, this is not simply a question of policy; it is also a matter of moral responsibility and ensuring that the impact on victims and their families is properly recognised.

'For families like mine, the consequences of losing a loved one are devastating and lifelong. Kennedi's life was taken, her child is growing up without a mother, and our family continues to live with the trauma of her death.

'I welcome this announcement as a step towards addressing these concerns and achieving a greater sense of fairness for victims' families.'

Julian Hendy, from the Hundred Families which supports those whose loved ones have been killed by someone with a mental illness, said: 'This is a very welcome move and something we've been campaigning on for nearly a decade.

'Paying thousands of pounds of state benefits to mentally disordered offenders on hospital orders who have committed the most serious of crimes cannot be justified. It is unjust and morally wrong.

'Dangerous offenders should not be rewarded for their crimes, particularly when they have no costs and when victims' families have to struggle so hard to get appropriate care and support.

'That's why we're very grateful the government has taken action to close this dangerous loophole, which will surely help keep patients, their families, and the public safe.'

The decision to remove benefits from serious offenders will not affect people currently detained under the Mental Health Act 1983, who have not committed any offence.