Conservative leader Kemi Badenoch has unveiled a proposal for a “Back to Work” pre-payment card that would restrict how long-term Universal Credit claimants spend their benefits. Under the plans, announced on 24 September 2026, claimants could be barred from buying alcohol, tobacco, and gambling services.
The policy specifically targets individuals who have been out of work for more than six months and do not have a consistent record of tax contributions. In addition to spending restrictions, those falling into this category would see their Universal Credit standard allowance reduced by 30%, receiving only 70% of the current rate.
The “Back to Work” card is designed to ensure that state support is directed towards essential goods and household bills. To enforce this, the card would also prohibit cash withdrawals, preventing funds from being used in ways the proposed system cannot track or restrict.
Targeted cuts and eligibility
The Conservatives estimate that the scheme would affect approximately 350,000 claimants across the UK. By reducing the standard allowance and tightening spending controls, the party claims the policy would save the taxpayer roughly £538 million per year.
The proposal includes several key exemptions to protect vulnerable groups. The restrictions and the 30% payment cut would not apply to people who are registered as sick or disabled, nor would they affect claimants who are already in partial employment but still receiving Universal Credit support.
The party has suggested that the measure is necessary to incentivise a return to the workforce for those with no significant National Insurance contribution history. However, technical questions remain regarding how retailers would differentiate between “essential” and “non-essential” items at the point of sale, particularly in supermarkets where alcohol and tobacco are sold alongside groceries.
Government and charity response
The current Labour government has criticised the proposal. Prime Minister Andy Burnham’s administration described the card scheme as “unworkable”, suggesting the infrastructure required to manage and monitor the restricted cards would be overly complex and costly to implement.
The proposal forms part of a wider opposition strategy focused on welfare reform, though any implementation would depend on a future change in government and the successful development of the required retail technology.