Conservatives propose cutting Universal Credit and banning alcohol, cigarettes and gambling for long-term claimants

The Conservative Party has announced a welfare reform plan that would slash Universal Credit payments by a third for long-term unemployed who have not met a tax-contribution threshold, after a six-month period. The reduced amount would be transferred to a “back to work” pre-payment card that allows only essential purchases and blocks alcohol, cigarettes, gambling and cash withdrawals. Party leader Kemi Badenoch argued the existing system rewards those who choose not to work and must be tightened, while Labour accused the Tories of failing to reform welfare over 14 years.

The scheme exempts claimants who are sick, disabled, or employed while receiving UC. Reform’s Treasury spokesman Robert Jenrick dismissed the measure as a weak “sticking plaster.” Additional welfare reforms are slated for announcement at the upcoming Conservative conference.