Home Housing newsDWP issues major update as benefits ‘loophole’ to close

DWP issues major update as benefits ‘loophole’ to close

by Editor

The Department for Work and Pensions has announced plans to close a loophole that allows convicted criminals detained in hospitals to claim over £800 a month in benefits

The Department for Work and Pensions (DWP) has unveiled a major benefits overhaul affecting claimants. In news disclosed earlier last week, the DWP confirmed plans to close a benefits “loophole” that has allowed convicted criminals to claim more than £800 monthly.

Current rules mean that convicted criminals detained in hospitals under court order remain eligible for benefits – allowing an offender in hospital to collect over £800 per month in Universal Credit. On January, 15 the UK Government announced fresh proposals to stop criminals from accessing these benefit payments.

Prisoners are already barred from claiming state benefits and the UK Government now wants to explore extending this to offenders detained in hospitals under court order, including those convicted of violent and sexual offences, given their accommodation, meals and treatment costs are already met.

The Work and Pensions Secretary says consultation will be sought from experts on removing Universal Credit from those found guilty of crimes including manslaughter, rape and other serious offences, who are held in a hospital setting, acknowledging the complexity and sensitivity of this matter.

The announcement follows pressure from families affected by high-profile tragedies, including relatives of Kennedi Westcarr-Sabaroche and the three victims of the Nottingham attacks, Grace O’Malley-Kumar, Barnaby Webber and Ian Coates. For money-saving tips, sign up to our Money newsletter here

Dr Sanjoy Kumar and Dr Sinead O’Malley, Grace O’Malley-Kumar’s parents, said: “We are delighted to hear this announcement from the Secretary of State. For us, the campaigning families this is what decisive and bold departmental leadership looks like. Pat’s actions benefit our country and our communities. As a result, our country now leads many countries across Europe on this issue.

“We also appreciate the help Pat McFadden MP has given our cause and our campaign. Whilst we have lost our brave and beautiful daughter Grace, we now know that in her name good is being done for our country. The decision to remove benefits from serious offenders would not affect people who have been sectioned, who have not committed any offence.”

Prime Minister Sir Keir Starmer commented: “It cannot be right that offenders convicted of the most serious crimes continue to receive benefits they don’t need at the expense of the taxpayer. These proposals will restore basic fairness and common sense to our social security system.

“I’m determined to do whatever it takes to stand up for victims, protect taxpayers, and ensure support goes to those who genuinely need it. The Work and Pensions Secretary wants to ensure the benefits system reflects the stark difference between those receiving long-term hospital treatment and have not committed a crime – who will not lose benefits – and those detained under court order for serious offences.”

Work and Pensions Secretary Pat McFadden stated: “I don’t think there’s a single household in Britain who believes it’s right that convicted criminals receive thousands of pounds a year in benefits. It’s unfair to victims’ families and to taxpayers whose hard-earned cash ends up in the pockets of offenders, and contrary to our values – we don’t reward acts of violence.

“That’s why I’m acting to right the wrongs within our benefits system, so it supports people who genuinely need it, while delivering fairness to the taxpayer.”

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