The Conservative Party has unveiled a proposal targeting Universal Credit claimants that would link benefit levels to an individual's national insurance contribution history. Under the plan, those who have not paid sufficient national insurance would see their payments reduced by one-third. The proposal also introduces a restricted payment method, where the remaining funds would be deposited onto a dedicated debit card. This card would be programmed to block transactions for specific items, namely alcohol and tobacco.

The stated objective of the Conservative Party is to incentivize employment and encourage claimants to enter the workforce. However, the proposal has faced immediate criticism from advocacy groups. Critics argue that the reduction in benefits will exacerbate financial hardship for vulnerable populations. Furthermore, the implementation of a restricted debit card system has drawn comparisons to a similar program previously tested in Australia. That Australian trial was ultimately discontinued after evaluations suggested it failed to significantly alter recipient behavior or improve employment outcomes. The Guardian reports that the plan has been characterized by some charities as a "fast track to increased poverty," highlighting a significant divide between the government's stated policy goals and the concerns raised by social welfare advocates regarding the potential impact on low-income households.