DWP Universal Credit update as £800 ‘loophole’ set to close

An update has been issued on a Universal Credit "loophole" worth £800 a month. The Department for Work and Pensions (DWP) means-tested benefit is available for people on low income, out of work, or unable to work due to illness or disability. However, a move has been confirmed to close a benefit loophole and save taxpayers millions of pounds every year.

DWP Universal Credit update as £800 ‘loophole’ set to close

TL;DR

  • The DWP is closing a loophole allowing convicts in psychiatric hospitals to claim Universal Credit.
  • Previously, these individuals could receive NHS funding for accommodation and treatment, plus up to £800 monthly from Universal Credit.
  • This dual funding is deemed unfair to taxpayers and victims, particularly in cases of violent and sexual offenses.
  • Prisoners are already banned from claiming state benefits, and this measure extends the restriction to those detained in hospitals under court orders.
  • The closure of this loophole is expected to save taxpayers millions of pounds annually.
  • The change was highlighted by families of victims from the Nottingham attacks.