Tories would ban long-term benefit claimants from buying alcohol and cigarettes

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Jobless benefits claimants could be banned from spending their welfare payments on alcohol, cigarettes and gambling under a Conservative plan to slash the UK’s welfare bill.

An estimated 350,000 benefits claimants would face receiving their payments on a pre-loaded card, which it would be impossible to use for cash withdrawals, betting, or buying cigarettes or alcohol.

Under the Tory scheme, anyone who claims Universal credit (UC) when they are looking for work would get six months of full benefits – but after that, anyone who has not consistently contributed to the welfare system over years would have their payments slashed.

The full rate would be available only to people who have contributed to the welfare system through their taxes for a sustained period.

Under the plans, every two years a UC claimant has worked would buy them an extra year on the full rate of the benefit.

But jobseekers who do not have a record of working and contributing would have their UC standard rate cut by a third to a new “subsistence allowance”.

And that payment would be loaded onto a “back-to-work” pre-payment card that came with the restrictions on spending.

The card could be used for food and other everyday essentials, and to pay for bills.

People who are off sick or disabled, or who are claiming UC while in work, would be exempt.

The Conservatives estimate the shake-up could save taxpayers £538m a year.

Party leader Kemi Badenoch claimed the current system was unfair to workers.

“Some will say this is unfair on people claiming benefits. What is unfair is a system where someone who can work chooses not to and earns more from benefits than someone in a job,” she said.

“Helping people into work is not punishment. The best welfare is a well-paid job. So we will be tough on those who exploit the system because the current system is unfair to workers, taxpayers and those who truly need support.”