Key facts
- The Conservatives plan to prevent long-term unemployed benefit claimants from spending Universal Credit on alcohol, cigarettes, and gambling.
- Claimants out of work for over six months who haven't contributed enough to the system would receive 70% of their benefits on a restricted payment card.
- The proposed changes are estimated to save around £538 million annually and affect approximately 350,000 claimants.
- Kemi Badenoch stated the current system is unfair to workers, taxpayers, and those who truly need support.
- The Trussell Trust described the proposals as "deeply misguided" and noted that Universal Credit already falls short of essential needs.
The UK Conservative Party has proposed a welfare crackdown aimed at reducing the welfare bill and encouraging employment. Under the plan, individuals who have been unemployed for over six months and are deemed capable of working would have their Universal Credit payments reduced by 30% if they have not contributed sufficiently to the system through past work. This reduced amount would be provided via a pre-paid 'Back to Work' card, which would restrict spending on items such as alcohol, cigarettes, and gambling, and prevent cash withdrawals. The party estimates these changes could save approximately £538 million annually by moving around 350,000 claimants to a lower benefit rate.
Conservative leader Kemi Badenoch stated that the current welfare system is unfair to workers and taxpayers, arguing that welfare should be a safety net for those genuinely in need, not a lifestyle choice. The proposals exempt claimants who are sick, disabled, or already employed, focusing only on those judged capable of work but not seeking it. The party also plans to make it harder to claim sickness benefits and scrap Personal Independence Payment for certain mental health conditions.
However, critics have raised concerns about the scheme's feasibility and impact. The Labour Party called the proposal "unworkable," while Helen Barnard, director of policy and research at the anti-poverty charity Trussell, described the plans as "deeply misguided," noting that Universal Credit already fails to cover basic essentials for many.
Spending on benefits is forecast to rise to £408.6 billion by 2030/31.