The Conservative Party’s latest proposal to reform Universal Credit (UC) has raised significant concerns among charities and advocates for low-income families. Under the plan, claimants who do not meet certain national insurance payment thresholds would see their UC payments cut by a third. This could push many families further into poverty, especially as living costs continue to rise.
The proposed changes would mean that after an initial six months of full UC payments, individuals would only receive reduced amounts based on their work history. For example, a single claimant under 25 could be left with just £7.50 a day. Critics argue that this approach fails to consider the realities of job searching, where financial strain can hinder the ability to secure employment.
Additionally, the plan includes a controversial ‘back to work card’ that restricts spending on alcohol, tobacco, and gambling. This method, previously trialed in Australia, has shown limited success in changing behaviour. Experts warn that such restrictions could exacerbate financial difficulties for those already struggling.
As the government aims to save £538 million annually by targeting around 350,000 claimants, the broader implications of these cuts could lead to increased reliance on food banks and other forms of emergency support, further entrenching the cycle of poverty in the UK.
Source: The Guardian
