I work across several acute psychiatric wards and if he's not under a mental health act then I don't see the relevance.
The way we treat prisoners is not because we believe they are forgiven but because WE are a compassionate society.
Whilst you may wish to deny this person tiny privileges, which is the whole systems currency, you also wish the same for every prisoner - some with horrific histories themselves. I worked for many years in forensic mental health wards where the majority of people had been unwell for years, with terrible childhoods and no security or loving family. I worked hard to get them working, privileges, and discharges because we live in a compassionate society.
We value freedom and this most prized possession is denied to prisoners. Small privileges support the system to reduce the cost of housing them and provide opportunities for rehabilitation for many prisoners who WILL be released at some stage.