Conservatives propose restricted card for some UC claimants

The Conservatives have proposed cutting Universal Credit for some work-capable claimants after six months and placing the reduced payments on a restricted prepayment card, a plan the party says would affect about 350,000 people and save £538 million a year. The changes are proposals and are not in force. Under the plan, claimants judged able to work would receive the full rate for six months while seeking employment. After that, those without sufficient qualifying work and contribution records would receive 70% of the full rate, equivalent to a 30% reduction. The Conservatives say each two years worked would qualify a claimant for one additional year at the full rate. The reports do not specify how the party would define or verify sufficient contributions or qualifying work history. The reduced payment would be loaded onto a proposed Back to Work card. It could be used for food, everyday essentials and bills, but would block purchases of alcohol and cigarettes, gambling or betting transactions, and cash withdrawals. Practical details for operating the card and handling exceptions have not been provided in the reports.