Auto Amazon Links: No products found.
The Conservative Party has announced plans aimed at restricting how long-term unemployed benefit recipients can use their welfare payments, specifically to prevent spending on alcohol, cigarettes, and gambling. Their proposal targets those who have been jobless for over six months and have not contributed sufficiently to the system despite being capable of work. These individuals would face a 30% reduction in their Universal Credit payments.
This lower payment amount would be transferred onto a “Back to Work” card, which restricts users from withdrawing cash or purchasing certain items like alcohol, tobacco, and gambling products. According to the Conservatives, these measures are intended to encourage recipients to find employment and reduce the escalating costs of welfare. However, the Labour Party has criticized the scheme, labeling it as “unworkable.”
A spokesperson for Labour stated, “The Conservatives had 14 years to fix our welfare system but they completely failed to make meaningful reforms. Now they are proposing an unworkable new card scheme, which does nothing to tackle the numbers of people their system left signed off and written off.” Despite this opposition, the Tories estimate that around 350,000 claimants would be shifted onto the reduced rate of Universal Credit, generating annual savings of approximately £538 million.
The Conservative plan also includes a mechanism that allows individuals who are fit for work to receive full benefits for an initial six months while seeking employment. Moreover, for every two years a claimant has previously worked, they would earn an additional year of full-rate Universal Credit. Those who fail to meet contribution requirements would instead receive a “Subsistence Allowance” set at 70% of the full payment, a measure designed to protect individuals with a reliable employment history. For instance, a 58-year-old who has consistently worked since leaving school but lost their job would retain the full allowance until reaching the state pension age. Exemptions would apply to claimants who are sick, disabled, or already employed.
Conservative leader Kemi Badenoch commented on the reforms, saying, “The best welfare is a well-paid job. So, we will be tough on those who exploit the system because the current system is unfair to workers, taxpayers and those who truly need support.” She added, “Welfare must be a safety net for those who genuinely need it, not a lifestyle choice for those who can’t be bothered.” Nonetheless, the proposals have faced criticism from anti-poverty advocates such as Helen Barnard of Trussell Trust, who described them as “deeply misguided.” Barnard argued, “Universal Credit already falls well short of what people need to afford the essentials like food and heating, forcing people across the UK to the doors of food banks,” adding that severe hardship is harming people’s health and ability to maintain work.
Further criticism came from Reform UK’s economy spokesman, Robert Jenrick, who pointed out that Conservative policies have already led to record numbers on long-term benefits and claimed the new proposals “won’t even put a dent” in the welfare expenditure. Other Conservative measures include plans to abolish Personal Independence Payment for “low-level” mental health conditions and to tighten access to sickness benefits, aiming to increase the number of people seeking employment. Spending on welfare has risen significantly in recent years and is projected to reach £408.6 billion by 2030/31, according to Department for Work and Pensions data. Meanwhile, Prime Minister Andy Burnham has pledged to reduce welfare costs by addressing the number of young people not in education, employment, or training, but rejects the idea of doing so through “crude cuts.”
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found.