Conservative plan to cut some universal credit payments draws poverty warning
A Conservative proposal in the UK would reduce universal credit payments by a third for claimants who have not paid enough national insurance. The plan would also use restricted debit cards for the allowance, prompting a charity to warn it could increase poverty.
The UK Conservative Party has proposed cutting universal credit payments by a third for people who have not paid enough national insurance, The Guardian reported. Under the plan, the affected claimants would receive what the party calls a “subsistence allowance”. The payment would be made through a dedicated debit card, which would prevent spending on alcohol or tobacco.
The proposals are intended to push people into work. However, charities have criticised the approach, arguing that families are already facing the effects of austerity cuts and a higher cost of living. One charity described the proposal as a “fast track to increased poverty”, according to The Guardian.
The restrictions are based on an Australian system, but the supplied report says that system was later scrapped after trials found limited evidence that it changed behaviour. The available material does not state the proposal’s cost, the number of people who would be affected or whether the Conservatives would introduce it in government. It also does not provide a response from the UK government or Labour opposition.
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