Conservative leader Kemi Badenoch has unveiled plans to restrict how some long-term unemployed Universal Credit claimants could spend their benefits, including blocking purchases of alcohol, cigarettes and gambling. The proposed Badenoch benefit card is not current law and would apply only to a defined group of claimants if the Conservatives returned to government and implemented the policy.
Under the plan announced on Wednesday, people judged capable of working would initially receive their full Universal Credit entitlement for six months while looking for a job. Those without a sufficient record of National Insurance contributions could then have the standard part of their payment reduced by 30 per cent.
The reduced payment, which the Conservatives call a “Subsistence Allowance”, would be loaded onto a prepaid “Back to Work” card. The card would prevent cash withdrawals and block spending on alcohol, tobacco and gambling products.
Who would be affected by Badenoch’s benefits plan?
The proposal would not apply automatically to everybody receiving Universal Credit.
Under the Conservative plan, an unemployed claimant would receive the normal rate for the first six months. After that, their continued entitlement to the full standard allowance would depend partly on their previous contribution record.
The party proposes that roughly two years of previous qualifying work would provide another year of full-rate Universal Credit. Claimants without enough contributions who remain unemployed and are considered capable of working could then move onto the lower allowance.
The Conservatives estimate that about 350,000 people across England, Scotland and Wales could eventually move onto the reduced payment, producing estimated savings of about £538 million a year. Those are Conservative Party estimates rather than savings that have already been independently realised.
The proposals would exempt people already working and those assessed as having limited capability for work and work-related activity because of a health condition or disability. Payments linked separately to housing and dependent children would also remain unaffected under the plan.
Badenoch says welfare should encourage work
Badenoch said the reforms were intended to make the welfare system more closely connected to employment and previous contributions.
“If you can work, you should work,” she said, adding that welfare should remain a safety net for people who genuinely need support.
The Conservatives argue that restricting the card to essential spending would ensure that public money is used for necessities such as food rather than alcohol, cigarettes or gambling.
The plan comes as welfare spending remains a major political issue in Britain, with parties debating how to reduce long-term economic inactivity while continuing to support people who cannot work.
Charities and Labour challenge the proposal
The proposals have drawn criticism from Labour and anti-poverty organisations.
A Labour spokesperson described the plan as “unworkable” and argued that the Conservatives had failed to deliver sufficient welfare reform during their previous 14 years in government.
Helen Barnard, head of policy at food bank charity Trussell, argued that cutting support could make it harder for some people to return to employment because claimants still need money for rent, childcare and transport to interviews.
The Child Poverty Action Group also warned that reducing incomes could increase hardship among affected households. The Conservatives, by contrast, say their proposals would protect people with strong employment records while creating a stronger incentive for those who can work to find jobs.
Similar restricted-payment systems have been tried elsewhere, including Australia. The Guardian noted that Australia’s previous cashless debit-card programme was eventually scrapped after evaluations found limited evidence that it consistently changed claimants’ behaviour.
What it means for Nigerians living in Britain
Nigerians living in the UK should not assume the proposal would automatically apply to them.
Universal Credit eligibility depends on factors including a person’s immigration status, income and savings. UK government guidance says a person generally needs an immigration status that allows access to public funds, alongside the normal Universal Credit eligibility conditions.
Many people in the UK on temporary immigration permission have a “no recourse to public funds” condition, known as NRPF, which normally prevents them from claiming Universal Credit in the first place. People with settlement or another status permitting access to public funds may be eligible if they meet the other requirements.
For eligible Nigerian residents, the proposed restrictions would matter only if they fell within the specific unemployment and contribution conditions set out by the Conservatives.
Most importantly, nothing changes immediately. The Conservatives are proposing the policy from opposition. It would require the party to return to government and put the necessary rules into effect before claimants could be moved onto the new card.
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