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Tory Welfare Crackdown Would Ban Benefit Spending on Booze and Cigarettes
The plan would move 350,000 claimants onto a lower allowance and could save taxpayers £538 million a year, the Conservatives estimate.
Conservative Party leader Kemi Badenoch proposed a new "Subsistence Allowance" worth 70% of full Universal Credit payments, with funds loaded onto a "back to work" card blocking alcohol, cigarette, and gambling purchases.
Facing a forecast £408.6bn welfare bill by 2030/31, the Conservatives estimate moving 350,000 claimants to the lower rate would save taxpayers £538 million annually.
Claimants receive six months of full benefits while seeking work; after that, eligibility depends on employment history. Badenoch confirmed disabled individuals, those off sick, and people already in work remain exempt.
Helen Barnard, director of policy at the charity Trussell, labeled the proposals "deeply misguided," while Reform UK's Robert Jenrick called the plan "weak" and a Labour Party spokesperson termed the scheme "unworkable."
Further welfare policy details are expected at the Conservative party conference opening in Birmingham on October 4, while the Labour government is introducing a £3.5 billion employment support package to help people return to work.