Story perspectives

UK proposes cutting Universal Credit for 350,000 claimants

By Drooid · Sep 25, 2026, 12:02 PM UTC · How we work

Summary

Story summary

UK Conservative government proposes cutting Universal Credit for 350,000 claimants after six months of entitlement.
Payments would drop to 70%, leaving a single under-25 claimant £237 a month and couples £466.
Payments would be delivered on a “back to work” debit card that blocks alcohol and tobacco purchases.
Charities Trussell and Child Poverty Action Group warn cuts will deepen poverty.
The government says the scheme will save £538 million a year.

History

Historical Context

David Cameron’s 2012 Welfare Reform Act introduced Universal Credit, merging six means-tested benefits and beginning a UK-wide rollout in 2013. The reform, framed as austerity, aimed to cut welfare spending, which the DWP recorded at over £159 billion in 2011-12. New cuts targeting 350,000 claimants echo earlier conditional-debit-card pilots and have drawn criticism from the Trussell Trust and Child Poverty Action Group.

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Story summary

UK Conservative government proposes cutting Universal Credit for 350,000 claimants after six months of entitlement.
Payments would drop to 70%, leaving a single under-25 claimant £237 a month and couples £466.
Payments would be delivered on a “back to work” debit card that blocks alcohol and tobacco purchases.
Charities Trussell and Child Poverty Action Group warn cuts will deepen poverty.
The government says the scheme will save £538 million a year.

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