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Tories target universal credit claimants in plan condemned as ‘fast track to poverty’

Tories target universal credit claimants in plan condemned as ‘fast track to poverty’

Summary

The Conservative Party in the UK has proposed cutting universal credit payments by a third for people who have not paid enough national insurance contributions. The plan would also pay reduced benefits via a special debit card that blocks purchases of alcohol, tobacco, and gambling.

Key Facts

  • Universal credit payments would be full for six months, then reduced based on national insurance payment history.
  • People with less work history would receive 70% of the standard benefit.
  • Reduced payments would be loaded onto a "back to work card" that restricts spending on certain items.
  • The plan excludes people already working and those with disabilities or health conditions that limit work.
  • Housing and child-related payments under universal credit would not be affected.
  • The Conservatives estimate 350,000 people in England, Scotland, and Wales would be affected, saving £538 million annually.
  • Critics say cutting benefits will increase poverty and make it harder for people to find and keep jobs.
  • Similar systems exist in Germany and the Netherlands, but those countries provide higher benefit amounts and additional support.
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