The Conservative Party has unveiled proposed changes to Universal Credit and Department for Work and Pensions (DWP) payments, which could see benefits claimants experience a significant cut if they have not paid sufficient National Insurance contributions. Under the plan, certain recipients could see their payments reduced by up to a third.
Additionally, the proposals include measures to restrict how some benefits claimants can spend their money. Jobless individuals receiving a so-called “subsistence allowance” may have their payments paid onto a dedicated debit card, which would block purchases of items such as alcohol, cigarettes, and gambling products. It is estimated that around 350,000 people could be required to use such a pre-loaded card.
As part of the plan, those claiming Universal Credit while seeking work would initially receive six months of full payments. After this period, individuals who have not consistently contributed to National Insurance over several years would see their payments reduced to 70% of the standard amount.
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This means, for example, that a single claimant under 25 would receive approximately £237 per month, which equates to just over £7.50 per day. Couples aged 25 or over could face a £200 monthly reduction, leaving them with £466 in total.
Kemi Badenoch, leader of the Conservative Party, emphasised that the policy aims to target those who exploit the welfare system. She stated: “Welfare must be a safety net for those who genuinely need it, not a lifestyle choice for those who can’t be bothered.” She added, “Helping people into work is not punishment. The best welfare is a well-paid job.”
Badenoch also expressed concerns about the sustainability of the current system, saying, “The UK should not be borrowing from our children and grandchildren to support people who simply refuse to work.”
Helen Whately, the shadow work and pensions secretary, commented, “We cannot go on like this – with millions of people living on benefits instead of in work. Britain can’t afford it.”
However, not all responses to the proposals were supportive. Sara Ogilvie from the Child Poverty Action Group warned that families are already under pressure from austerity-related cuts and rising living costs. She described the changes as “a fast track to increased poverty.”
Helen Barnard, the head of policy at Trussell Trust, called the proposals “deeply misguided,” noting that Universal Credit already imposes strong conditions to encourage work. She highlighted that reducing support could worsen the challenges faced by those struggling with essential costs like food, rent, and travel to job interviews.
A Labour Party spokesperson criticised the Conservative Party’s approach, pointing to their 14 years in government without meaningful welfare reform. They described the proposed card scheme as “unworkable” and emphasised Labour’s commitment to introducing effective welfare reforms and employment support, including a £3.5 billion package and a jobs guarantee scheme for young Universal Credit recipients.
The proposed changes reflect an ongoing debate about how best to balance support for those in need with incentives to return to work, amid concerns about poverty levels and fairness within the welfare system.