Headline: Conservatives Propose 30% Universal Credit Cut for Some Long-Term Unemployed

Date: 24 September 2026

Tags: UK Politics, Welfare, Employment, Conservatives

Summary:

• Conservatives propose reducing Universal Credit for some people unemployed for more than six months and considered capable of working.

• Claimants without sufficient previous contributions would receive a new allowance worth 70% of their normal Universal Credit.

• Payments would go onto a prepaid “Back to Work” card preventing cash withdrawals and purchases of alcohol, cigarettes or gambling.

• Every two years previously worked would provide an additional year before a claimant moved onto the reduced payment.

• Sick, disabled and employed claimants would be exempt from the proposed restrictions.

• Conservatives estimate around 350,000 people would receive the reduced allowance, saving approximately £538m annually.

• The party says the policy would encourage employment while protecting people with long employment histories.

• Labour described the proposed card scheme as “unworkable” and questioned whether it would reduce long-term welfare dependency.

• Anti-poverty charity Trussell warned reducing Universal Credit could increase hardship and make finding and maintaining employment more difficult.

• Benefit spending is forecast to reach £408.6bn in 2030/31, according to Department for Work and Pensions figures.

Why this matters: The proposal would link benefit levels more closely to employment history while restricting how some long-term unemployed claimants spend payments.

What’s next: The Conservatives have not yet published detailed plans explaining exactly how the prepaid card and spending restrictions would operate.