Tories would prevent long-term jobless spending benefits on alcohol and cigarettes
The proposals would also see benefits cut for people who are able to work but have failed to hold down a job.
Tories would stop long-term unemployed from spending benefits on alcohol and cigarettes
The Conservatives have pledged to stop long-term jobless benefit recipients from using their welfare payments on alcohol, cigarettes and gambling.
Under the party’s plan, claimants who have been out of work for more than six months would have their Universal Credit reduced by 30% if they have not previously paid enough into the system, even though they are able to work.
The lower amount would be paid onto a “Back to Work” card, which would block cash withdrawals and spending on those items.
The Tories said the plan was intended to push people back into work and reduce the rising welfare bill, but Labour called the scheme “unworkable”.
A Labour Party spokesperson said: “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.”
The Tories estimate the changes would move about 350,000 claimants onto the lower Universal Credit rate, saving 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 who has previously worked would gain an extra year on the full Universal Credit rate - but those who have not contributed enough would fall to a new “Subsistence Allowance”, worth 70% of the full rate.
The party said this would protect “those with a strong employment record”.
For instance, a 58-year-old who has worked since leaving school but has been made redundant would keep the full allowance until state pension age.
Claimants who are sick, disabled or already in work would also be exempt, with only those assessed as capable of work affected.
The Tories said putting the “Subsistence Allowance” onto a pre-paid card, with limits on what it can be spent on, would make sure taxpayers’ money supports claimants with essentials such as food.
Conservative leader Kemi Badenoch said the current system, “where someone who can work chooses not to, and earns more benefits than someone in a job”, was “unfair”.
“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 said.
“Welfare must be a safety net for those who genuinely need it, not a lifestyle choice for those who can’t be bothered.”
But Helen Barnard, director of policy and research at the anti-poverty charity Trussell, said the proposals were “deeply misguided”.
“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,” she said.
“We see people’s health being damaged and their ability to find and maintain work undermined by the severe hardship so many are facing.”
Reform UK’s economy spokesman, Robert Jenrick, said the Tories had left record numbers on long-term benefits and the proposals “won’t even put a dent” in the welfare bill.
The Conservatives have already promised to scrap Personal Independence Payment, the main disability benefit in England, Wales and Northern Ireland, for “low-level” mental health conditions in order to help cut the welfare bill.
The party also wants to make it harder to claim sickness benefits, which it said would mean more people are required to look for work.
Benefit spending has surged in recent years and is projected to reach £408.6bn in 2030/31, according to Department for Work and Pensions figures.
Prime Minister Andy Burnham has said he will bring down the welfare bill, for example by tackling the number of young people not in education, employment or training, but not through “crude cuts”.