Tories target universal credit claimants in plan condemned as ‘fast track to poverty’

New government proposals would slash universal credit payments by a third for claimants who haven’t paid sufficient national insurance, with the reduced amount restricted to a debit card blocking purchases of alcohol and tobacco. Critics warn the measure risks trapping families deeper in poverty, despite claims it aims to encourage work. The system mirrors an Australian model abandoned after trials showed little impact on behavior. Charities argue the cuts will worsen the financial strain already faced by households struggling with austerity and rising living costs.

Proposals aim to push people into work, but charities say families are still paying price of austerity cuts and rise in cost of livingPeople claiming universal credit (UC) would have their payments cut by a third if they have not paid enough national insurance, under a Conservative plan condemned by one charity as “a fast track to increased poverty”.Under the proposals, those who receive this “subsistence allowance” would have it paid into a dedicated debit card that would prevent from them buying alcohol or tobacco, based on an Australian system that was scrapped after trials found limited evidence it changed behaviour. Continue reading...