Overview
- Conservative leader Kemi Badenoch unveiled the package on Wednesday, saying new claimants would get six months at full Universal Credit before a contributory test could shift some long‑term claimants to a 70% “subsistence” rate.
- Those moved to the lower rate would receive payments on a restricted pre‑paid ‘Back to Work’ card that blocks cash withdrawals and purchases of alcohol, cigarettes and betting.
- The party published an analysis saying roughly 350,000 people could be affected and annual savings of about £538 million, while some outlets reported different impact and savings figures, leaving the totals in dispute.
- The proposal exempts people judged unable to work, the disabled, those in work and the housing and child elements of benefits, but critics from Labour and Reform UK called the card unworkable or too weak.
- The plan draws on overseas examples such as Australia’s cashless debit scheme and follows wider debate over rising welfare costs and past Conservative welfare ideas, with detailed policy discussion expected at the Conservative conference.