The UK Conservative Party has proposed cutting Universal Credit by 30% for claimants who have been out of work for more than six months and who have not previously paid enough into the system, paying the reduced rate onto a card that would not allow cash withdrawals or spending on alcohol, cigarettes or gambling. The party estimates the change would move about 350,000 claimants onto the lower rate and save around £538m a year.
UK Conservatives propose cutting Universal Credit by 30% for long-term unemployed
The UK Conservative Party has proposed cutting Universal Credit by 30% for claimants who have been out of work for more than six months and who have not previously paid enough into the system, paying the reduced rate onto a card that would not allow cash withdrawals or spending on alcohol, cigarettes or gambling. The party estimates the change would move about 350,000 claimants onto the lower rate and save around £538m a year.
Under the proposals, anyone fit to work would receive six months on full benefits to find a job. Every two years a claimant has previously worked would buy an extra year on the full rate of Universal Credit, while those who have not contributed enough would drop to a new "Subsistence Allowance" worth 70% of the full rate. The party said this would protect "those with a strong employment record." A 58-year-old who has worked since leaving school but has been made redundant would keep the full allowance up to state pension age, the party said. Claimants who are sick, disabled or already in work would be exempt, with only those judged capable of work affected.
The Conservatives said loading the "Subsistence Allowance" onto a pre-paid card, with restrictions on what the money can be spent on, would ensure taxpayers' money supports claimants with essentials such as food.
The party has already pledged to scrap Personal Independence Payment, the main disability benefit in England, Wales and Northern Ireland, for "low-level" mental health conditions as part of efforts to cut the welfare bill. It also wants to make it harder to claim sickness benefits, which it said would mean more people are required to look for work.
Spending on benefits has ballooned in recent years and is forecast to rise to £408.6bn in 2030/31, according to figures from the Department for Work and Pensions.
- The source does not state the date of the announcement.
- The source does not state whether the £538m saving estimate has been independently verified.
- The source does not state how the estimate of about 350,000 affected claimants was calculated.
- The source does not state how the "Back to Work" card would be administered or by whom.
- The source does not state the cash value of Universal Credit or of the "Subsistence Allowance."
- The source describes Andy Burnham as prime minister and does not provide further context for the title.