Kemi Badenoch, the leader of the Conservative Party, announced plans on September 23, 2026, for a significant reduction in benefits for individuals who have not worked long enough. The proposal aims to address the rising costs of the benefits system in the UK. Under the new plan, long-term unemployed individuals who have contributed minimally to the tax system would see their Universal Credit payments reduced by 30%. Additionally, these payments would be issued on a 'Back To Work' card, which would restrict spending on alcohol, cigarettes, and gambling.
Badenoch stated, 'If you can work, you should work. Helping people into work is not punishment. The best welfare is a well-paid job.' She emphasized that the current welfare system is unfair to taxpayers and those who genuinely need assistance. The Conservative Party estimates that more than 300,000 individuals would transition to a lower 'Subsistence Allowance', potentially saving taxpayers approximately £500 million annually by the end of the decade.
The proposed changes include a six-month limit on claims for the Universal Credit Standard Allowance, which is currently £338.58 per month for individuals under 25 and £424.90 for those over 25. After this period, individuals deemed capable of work would be assessed based on their employment history. For example, a 58-year-old with 40 years of work experience would retain full benefits, while a 30-year-old with only one year of work would be moved to the lower allowance.
The Conservative Party has also outlined plans to cut £23 billion from the welfare budget, including changes to the Personal Independence Payment (PIP) and restrictions on foreign nationals accessing social housing. Badenoch's announcement comes ahead of the Conservative Party's annual conference in Birmingham.
In response, Labour criticized the Conservative proposals, stating that they have failed to implement meaningful reforms over the past 14 years. A Labour spokesman remarked that the new card scheme does not adequately address the challenges faced by individuals who are unable to work. Reform, another political party, accused the Conservatives of lacking the necessary resolve to address welfare issues effectively.
The Conservative Party's proposals draw comparisons to similar systems in other countries, such as Germany and Australia, where jobless individuals must meet certain work requirements to receive benefits. The Tories have previously suggested measures to prevent benefit fraud and misuse of funds.