Conservative Party proposes welfare reforms and spending restrictions

The Conservative Party has unveiled a proposal to reform the UK welfare system by restricting how long-term unemployed individuals spend their Universal Credit payments. Under the plan, claimants would receive full benefits for an initial six-month period to find work. Following this, those who have not made sufficient tax contributions would see their standard rate reduced by approximately one-third, transitioning to a new “subsistence allowance.”

To manage these reduced payments, the Conservatives propose a “back to work” pre-payment card. This card would allow for the purchase of food, everyday essentials, and utility bills, but would strictly block spending on alcohol, cigarettes, and gambling, as well as cash withdrawals. The party noted that the system would exempt individuals who are sick, disabled, or already employed.

Conservative leader Kemi Badenoch stated that the reforms aim to ensure welfare acts as a “safety net” rather than a “lifestyle choice,” arguing the current system is unfair to taxpayers and workers. The Shadow Work and Pensions Secretary, Helen Whately, defended the measure, noting that it would prevent the use of taxpayer funds for non-essential items. The Conservatives estimate the policy could save the taxpayer approximately £538 million annually by moving an estimated 350,000 claimants to the lower subsistence rate.