More than 2,500 serious offenders detained in secure psychiatric hospitals will no longer be eligible to receive universal credit benefits under new government rules intended to close a longstanding loophole. The proposed changes are expected to save taxpayers tens of millions of pounds annually and are set to be introduced to Parliament for approval on October 20.

Currently, individuals held under hospital orders in secure psychiatric units can claim more than £800 a month in universal credit, despite being confined in medical facilities rather than prisons. The new regulations will end this practice, affecting offenders who have committed grave crimes, including murder.

The changes come in the wake of a high-profile campaign by families of victims of Valdo Calocane, a paranoid schizophrenic who killed three people in Nottingham in 2023. Calocane is serving an indefinite hospital order after pleading guilty to manslaughter on the grounds of diminished responsibility.

Emma Webber, whose 19-year-old son Barnaby was among Calocane’s victims, described the previous system as "disgraceful," asserting that offenders like Calocane should not receive taxpayer money while detained. She emphasized that being housed in a hospital does not diminish the severity of the crimes committed or the impact on victims’ families.

Similarly, Dr. Sanjoy Kumar, whose daughter Grace O’Malley Kumar, also 19, was killed by Calocane, highlighted the financial burden such offenders already impose through treatment costs. He noted that upon release, offenders receive assistance with housing and benefits, but questioned why public funds should continue to support them while incarcerated.

The government argues that the policy adjustment promotes fairness in the benefits system and addresses public concerns over supporting serious offenders during their confinement. While supporters of the change view it as a necessary measure to uphold justice and taxpayer equity, some advocates for mental health patients caution that benefits serve a critical role in supporting rehabilitation and basic needs during inpatient treatment.

As the regulations await parliamentary approval, the debate continues over balancing fiscal responsibility, victim rights, and the welfare of those detained under mental health orders.