The Newshound

Powell insists benefits claimants don't waste money on 'booze and gambling' as Tories demand pre-paid welfare cards

From the Newshound archive · first published 24 September 2026 · last updated 26 September 2026.

Kemi Badenoch, the Conservative leader, whose welfare crackdown would cut Universal Credit by a third for long-term claimants and load reduced payments onto a prepaid card blocking alcohol and cigarette purchases.
Kemi Badenoch, the Conservative leader, whose welfare crackdown would cut Universal Credit by a third for long-term claimants and load reduced payments onto a prepaid card blocking alcohol and cigarette purchases.

Education Secretary Lucy Powell sparked fury after dismissing evidence that Universal Credit claimants spend handouts on drink, cigarettes and gambling. She told GB News that the 'vast majority' use their very little money on rent and bills, after Labour branded the Tory plan for pre-loaded benefit cards 'unworkable'. Pat McFadden separately conceded the welfare system 'needs to change', signalling growing Labour unease. Kemi Badenoch's scheme would cut long-term jobless payments by nearly a third and ban spending on alcohol, tobacco and betting.

Business Secretary Jonathan Reynolds told BBC Question Time the card plan was just Tories 'saying you don't like poor people' — to audience applause.

Tory work and pensions spokesperson Helen Whately hit back, saying the policy is 'about stopping people living a lifestyle on welfare', and rejected claims it was patronising.

A Tory spokesman said Powell 'would rather attack the Conservatives than explain why Labour has failed to bring forward a single welfare reform of its own'.

MoreFinancial TimesWelfare system ‘needs to change’, says McFaddenThe TelegraphCut housing benefits for people who don’t work, Labour urgedThe TelegraphBritain has a welfare delusion. Pledging tax cuts makes it worseHuffPost UK'You Just Don't Like Poor People': Senior Tory Monstered Over Plan To Slash Benefits
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