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London criminals in psychiatric care to lose £800 monthly benefits

New government rules aim to stop 'double provision' for serious offenders detained under mental health orders.

Reporting desk London Crime News Desk||4 min read|London Crime News
Pat McFaddenIncident → evidence → outcome
Pat McFaddenLauren Hurley / No 10 Downing Street via Wikimedia Commons (OGL 3)

Individuals convicted of serious crimes and currently receiving treatment in psychiatric hospitals across London may see their monthly benefit payments reduced by as much as £800. This measure is part of a broader government initiative to reform the welfare system and eliminate what is described as 'double provision'.

The changes mean that offenders will no longer be eligible to claim Universal Credit for living expenses that are already being met through taxpayer funding while they are detained. The government states this move is intended to ensure fairness within the welfare system.

Campaign for Change

This policy shift follows sustained campaigning by the families of victims who have highlighted the perceived injustice of offenders receiving financial support for living costs while incarcerated. The families of Barnaby Webber and Grace O’Malley-Kumar, who were killed in 2023, were among those advocating for these reforms.

Emma Webber, Barnaby's mother, expressed that the change is 'long overdue' and 'simply the right thing to do'. She stated it was a 'disgrace' that offenders like Valdo Calocane, convicted of manslaughter on the grounds of diminished responsibility, had received taxpayer money. Dr Sanjoy Kumar, Grace O’Malley-Kumar’s father, echoed these sentiments, emphasizing that taxpayers should not fund benefits for individuals while they are detained.

Scope of New Regulations

The new regulations are set to impact approximately 2,500 offenders currently in hospital, with an estimated 200 additional cases expected annually. These rules apply to individuals held under specific orders, including Section 37 of the Mental Health Act 1983 and Section 57A of the Criminal Procedure (Scotland) Act 1995. The offences covered by these orders include manslaughter, attempted murder, wounding with intent, rape, and child sexual offences. Murder is excluded as offenders convicted of murder typically receive mandatory life sentences, making hospital orders inapplicable.

Work and Pensions Secretary Pat McFadden stated that the government is delivering on its promise to address this 'gross unfairness'. He added that victims and taxpayers deserve a system that is equitable and supports only those with genuine need. The full financial implications of this approach are scheduled to be published as part of the 2026 budget on 28 October. The NHS will continue to provide necessary mental health support to affected individuals.

Next Steps

The regulations are expected to come into force early next year, pending parliamentary approval. The government anticipates saving taxpayers tens of millions of pounds annually through this measure.

Reader briefing

Questions this report answers

Q/A
01How much could criminals in London psychiatric hospitals lose in benefits?

Serious offenders detained in psychiatric hospitals across London may lose up to £800 per month. This change aims to prevent individuals from receiving both taxpayer-funded living costs and separate benefit payments.

02Why are these new rules being introduced?

The changes follow campaigning by victims' families who argued against a 'double provision' loophole where offenders' living costs were covered twice. The government states the move ensures fairness in the welfare system for taxpayers and victims.

03Which offenders will be affected by these changes?

The regulations apply to individuals subject to specific Mental Health Act and Criminal Procedure (Scotland) Act orders for serious offences like manslaughter, attempted murder, and rape. Around 2,500 offenders nationwide are expected to be affected.

04When will these new benefit rules come into effect?

The new regulations are expected to be implemented early next year, following parliamentary approval. The government aims to save taxpayers tens of millions of pounds annually through this measure.

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London psychiatric hospital inmates lose £800 benefits | London Crime News