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Criminals to Lose Benefits Worth over £800 a Month in Major DWP Loophole Change

Labour plans to block universal credit for offenders in hospitals, aligning with prisoner rules; some could lose up to £800 monthly, officials said.

  • On Thursday, Work and Pensions Secretary Pat McFadden announced the Department for Work and Pensions will seek to remove Universal Credit from offenders detained in hospitals after meeting victims' families in London.
  • After the 2023 Nottingham attacks, campaigning families of Grace O'Malley-Kumar, Barnaby Webber and Ian Coates raised the loophole and said they were `delighted` ministers are reviewing it.
  • Analysis shows detained offenders can receive over £800 monthly in Universal Credit, despite prisoners being banned from most benefits, creating a loophole; PIP stops after four weeks, but NHS care continues.
  • The DWP will consult victims' groups and mental-health experts on the proposals and says people sectioned without offences would not be affected, with no official estimate of numbers or savings.
  • Work and Pensions Secretary Pat McFadden said it is unfair to taxpayers that offenders receive benefits, and officials say the change could happen soon.
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48 Articles

The IndependentThe Independent
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Western Morning NewsWestern Morning News
Lean Left

Criminals in hospital to lose benefits as Labour closes ‘loophole’

Families of victims of the Nottingham attacks have welcomed the plans

·London, United Kingdom
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Evening StandardEvening Standard
+40 Reposted by 40 other sources
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Criminals detained in hospitals could lose thousands in benefits under plans

The parents of a Nottingham attack victim said they were ‘delighted’ that the Government is looking into a benefits ban for hospital order convicts.

·London, United Kingdom
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Daily Express broke the news in United Kingdom on Thursday, January 15, 2026.
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