A similar model of pre-paid cards was proposed by ex-Tory Work and Pensions Secretary Iain Duncan Smith during the austerity years – but it was eventually dropped
Tory chief Kemi Badenoch has been slammed for ‘unworkable’ proposals(Image: Getty Images)
Kemi Badenoch’s Tories have been slammed for “unworkable” plans to give some people on benefits pre-loaded cards – rather than cash.
The party faces accusations the scheme is “built on stigma” with proposals to ban long-term unemployed people using the cards from spending on alcohol, cigarettes, and gambling.
A similar model of pre-paid cards was proposed by ex-Tory Work and Pensions Secretary Iain Duncan Smith during the austerity years – but it was eventually dropped.
A Labour Party spokesman said: “The Conservatives had 14 years to fix our welfare system but they completely failed to make meaningful reforms.
“Now they are proposing an unworkable new card scheme, which does nothing to tackle the numbers of people their system left signed off and written off.”
Under Tory plans those on the Universal Credit standard allowance – which stands at £424.90 a month for single people over the age of 25 – face their payments being slashed after six months.
The party said those who have not contributed to the welfare system through their taxes will see their benefits cut at this point by almost a third to a 70% rate of the allowance.
Those individuals would then have their payments loaded on a “back to work” pre-payment card, which would ban spending on cigarettes, alcohol, betting and cash withdrawals.
The Conservatives said those already working and claiming Universal Credit to top-up their low-income will be exempt along with those with health conditions.
Tory chief Kemi Badenoch said: “Some will say this is unfair on people claiming benefits. What is unfair is a system where someone who can work chooses not to and earns more from benefits than someone in a job.”
But Amnesty International UK’s Jen Clark said: “These proposals are built on stigma, not solutions. You cannot solve poverty by making people poorer.”
She added: “Our social security system is already consciously cruel, often treating people without basic dignity. We know that the existing sanctions system is driving people into debt, removing food from children’s tables and placing people at risk of homelessness.
“Politicians talking about restricting what people can buy on social security may grab headlines, but it does nothing to address the reality that millions of people are already struggling just to get by.”
Helen Barnard of anti-poverty charity Trussell said the proposals were “deeply misguided” .
She said: “Universal Credit already falls well short of what people need to afford the essentials like food and heating, forcing people across the UK to the doors of food banks. We see people’s health being damaged and their ability to find and maintain work undermined by the severe hardship so many are facing.”
“The Conservatives introduced Universal Credit to make work pay, and there are already stringent conditions applied within our social security system and a strong focus on ensuring people look for work whenever they are able to.
“But if you’re struggling to afford food and rent, childcare or the bus fare to an interview – then finding and keeping a job becomes harder not easier. Cutting support would only make things worse.”
It comes as separate research from the Child Poverty Action Group (CPAG) found almost half of parents are finding it hard to manage their budgets in the past year due to the cost of living crisis.
They found 49% of struggling families are also struggling to spend quality time together – rising to 56% of households in receipt of Universal Credit.
Among parents struggling to manage, CPAG also said 28% said they could not afford swimming lessons for children, and one in four struggled to afford visiting a sports club.
Director of policy at Child Poverty Action Group Sara Ogilvie said: “The cost of living is busting family budgets, undermining family life and increasing the risk of social isolation for kids.
“This cost-of-living government can and must restore investment in child benefit in the forthcoming Budget so that all parents are able to give their children a fair shot at success.”
