A Conservative Party proposal which would prevent benefits claimants from spending welfare payments on gambling, alcohol and cigarettes has been labelled as “unworkable” by the Labour Party.
The plan has been constructed in an attempt to reduce the UK’s welfare bill and would involve around 350,000 people who claim Universal Credit receiving a pre-loaded card.
It would specifically apply to out-of-work jobseekers who have been claiming Universal Credit for more than six months and do not have a consistent record of tax or National Insurance contributions.
Their standard payments would be reduced by 30%, with funds loaded onto this card rather than into their regular bank account, with Tory Party leader Kemi Badenoch vowing to be “tough on those who exploit the current system”, which she labelled as “unfair”.
However, a statement from the Labour Party showed that this is not something that looks likely to come into place right now.
“The Conservatives had 14 years to fix our welfare system but they completely failed to make meaningful reforms,” a spokesperson said.
“Now they are proposing an unworkable new card scheme, which does nothing to tackle the numbers of people their system left signed off and written off.
“While the bill for the taxpayer rose by £33bn in their last year in government, this Labour government is introducing effective and sustainable welfare reform alongside a £3.5bn employment support package to help people stay in or return to work, and the national rollout of the jobs guarantee for young people who have been on Universal Credit.”
Greens want gambling ads gone
Gambling is once again becoming a talking point across the political spectrum ahead of the Autumn Budget. The Green Party, which hasn’t been the biggest fan of gambling for a while, is also reported to be proposing drastic measures for the sector.
The Zack Polanski-led left wing party is considering a motion which would ban gambling advertising in sport altogether and track punters by using personal ID, which would lead to tougher restrictions on bettors under 25.
Betting and Gaming Council (BGC) Chief Executive Officer, Grainne Hurst, called the proposal “out of touch” and once again suggested that it would push punters towards the black market.
The Greens’ views have been echoed by members of the House of Lords. The Peers for Gambling Reform (PGR) group has called for a full scale ban on gambling advertising across the UK.
Hurst responded to this too, saying that it would “remove a key competitive advantage of being licensed and regulated while doing nothing to stop illegal operators targeting British consumers”.
More operators warn against potential MGD hike
This all comes alongside industry backlash as regulated operators lobby against a rumoured increase in Machine Games Duty (MGD).
Regulated gambling operators have already begun to suffer the impacts of the rise in Remote Gaming Duty from 21% to 40%, implemented in April, and are bracing for the effects of a General Betting Duty (GBD) hike from 15% to 25% in April 2027.
Yesterday saw more lobbying from UK gambling giants’ executives, namely those from William Hill and Ladbrokes Coral owner Entain.
Leo Walker, William Hill’s managing director for retail, told the Racing Post that he “can see the industry really rallying together to lobby hard” against a rise in MGD.
“MGD and a significant increase would be catastrophic if it hits the levels the Social Market Foundation has proposed,” he said.
“We’re very proud of our presence on the high street. We’re a highly regulated sector and I think we provide fantastic communities on the high street and again I’ve seen the value of that whenever I go out on shop visits, which is regularly. I’ve been one of those colleagues on the front line and remember my regulars from back then very fondly.
“I feel it could be extremely damaging and I can see the industry really rallying together to lobby hard on ensuring that the government and the treasury know the damage and impact that this could have to our high streets.”
Stella David, CEO of Entain, has been one of those industry figures who has lobbied hard against black market inaction, and recently wrote to Prime Minister Andy Burnham to urge him against an MGD increase.
Her latest pleas against this have come in national outlet The Sun, where she warned that the potential rise would cost Entain’s retail estate to the tune of £100m per year.
She also cited Ernst & Young (EY) modelling which suggested that, “once the lost tax receipts and wider economic effects are taken into account, the policy could ultimately leave the Exchequer around £120m worse off”.
“That is because when a betting shop closes, the Government does not simply collect less Machine Games Duty,” David wrote.
“It also loses PAYE and National Insurance from the jobs that disappear, business rates and other tax receipts. Suppliers lose business and local economies lose spending power.
“A tax designed to raise revenue should not end up shrinking the number of businesses, jobs and taxpayers that generate it.”