CONSERVATIVES UNVEIL PLAN TO RESTRICT UNIVERSAL CREDIT SPENDING

The Conservatives have unveiled plans to stop Universal Credit claimants spending welfare payments on alcohol, cigarettes and gambling. Under the proposals, claimants without a sustained tax record would have payments loaded onto a "back-to-work" pre-payment card after six months. The card would block cash withdrawals and spending on betting, cigarettes and alcohol, limiting use to food and essentials. Kemi Badenoch, the Conservative leader, said the current system was unfair to workers, taxpayers and those who need support. The party estimates that about 350,000 claimants would be moved onto the restricted card.

Anyone claiming Universal Credit while out of work would get six months of full benefits to look for a job. After that, the full rate would go only to people who have contributed to the system through their taxes over a sustained period. One report said two years of work would add an extra year of eligibility for the full rate. Those without a consistent contribution record would have their standard rate cut by a third onto a new "subsistence allowance". People who are off sick or disabled, or who claim Universal Credit while in work, would be exempt.

Badenoch said it was unfair for someone who could work but chose not to earn more from benefits than someone in a job. She said the best welfare was "a well-paid job" and that welfare should be a safety net rather than "a lifestyle choice". Helen Whately, the shadow work and pensions secretary, said Britain "can't afford" a system in which millions of people live on benefits instead of work. She said this was "not fair on taxpayers footing the bill".