UK Government Proposes Benefit Cuts for Long-Term Jobless Claimants
What happened
The Conservative Party has proposed significant benefit restrictions for claimants who have been unemployed for more than six months. Under the proposals, Universal Credit could be cut by 30% for those who have not contributed sufficiently to the system. This reduced rate would be managed via a 'Back to Work' card that prohibits cash withdrawals or spending on alcohol, cigarettes, or gambling.
From bbc.co.uk
Why it matters
The proposals are intended to encourage claimants to return to work and to reduce the overall welfare bill. The Tories estimate these changes would affect approximately 350,000 claimants, leading to annual savings of around £538 million.
The UK's main working-age welfare monthly payment system is currently under discussion.
From bbc.co.uk
Who's involved
- Universal CreditBritish social security payment system subject to proposed cuts
- ToriesPolitical party proposing the benefit reduction scheme
- Department for Work and PensionsGovernmental body responsible for administering the Universal Credit system
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The entities involved
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Universal Credit
British social security payment system