The Conservative Party has announced new plans for the welfare system, including a 'Back To Work' card and a 30% reduction in benefit payments for some unemployed individuals. Under the proposal, those on Universal Credit for more than six months and judged fit to work would receive a Subsistence Allowance, which amounts to 70% of the full claimant rate.
Claimants receiving the reduced rate would be required to spend on food and goods via a 'Back to Work' card. This card would also prevent cash withdrawals and purchases of alcohol, cigarettes, or betting. The Conservatives state that the plan would not affect the sick, the disabled, or those already employed, as they are exempt from the Subsistence Allowance.
According to party analysis, the proposal is projected to save taxpayers £538m each year. Tory leader Kemi Badenoch stated the plan would be "tough on those who exploit the system because the current system is unfair to workers, taxpayers and those who truly need support."
Reform UK's Robert Jenrick described the plan as "so weak the Lib Dems could have authored it," while a Labour Party spokesperson called it an "unworkable new card scheme" that fails to address the numbers of people signed off and written off by the current system.