Jobless don't use benefits for gambling and booze, claims Labour's Lucy Powell

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By MARTIN BECKFORD, POLICY EDITOR

Published: 00:39 BST, 25 September 2026 | Updated: 00:47 BST, 25 September 2026

A Cabinet minister came under fire on Thursday evening after she denied that benefits claimants spend their handouts on drink or gambling.

Education Secretary Lucy Powell claimed welfare recipients spend their 'very little' money on rent and paying household bills rather than luxuries.

She was put on the spot after Labour dismissed as 'unworkable' the Tories' tough proposal to cut Universal Credit payments for the long-term jobless and give them pre-loaded cards rather than cash.

Told by GB News that people in Australia support a similar scheme – it bans claimants spending income support on cigarettes, alcohol and gambling – Ms Powell replied: 'Well, the evidence isn't there to suggest that's what people are spending their very little amount of money on.

'The vast majority are using their Universal Credit for the basics: for rent, bills and getting by. This is not a luxury sort of lifestyle for anybody by any means at all.'

But a Tory party spokesman said Ms Powell 'would rather attack the Conservatives for having the backbone to reform welfare than explain why Labour has failed to bring forward a single reform of its own'.

They added: 'The welfare bill is out of control because Labour are the Welfare Party. It is not unreasonable to expect taxpayers' money is spent on essentials and not treated as a blank cheque.' And Tory work and pensions spokesman Helen Whately also rejected suggestions that it is 'patronising' to tell claimants what they can spend their benefits on.

Education Secretary Lucy Powell has come under fire after she denied that benefits claimants spend their handouts on drink or gambling

She told the BBC: 'This is taxpayers' money. When somebody who's hard-working, struggling to make ends meet, probably having to scrimp and save to pay their own bills, going without luxuries themselves... see somebody on welfare being able to live a life they can't afford themselves, that's not fair.'

Told it was unrealistic to expect smokers to give up their addiction if they lose their jobs, she replied: 'Actually, something you will hear is that one of the worst things you can do for somebody with addiction is keep giving them cash, which is easy to spend on that.'

She added: 'This is really about fundamentally getting people to step up and get a job, not just live a life on welfare. The best way to have earnings that they can spend how they like is to be working.'

Tory leader Kemi Badenoch this week announced plans for a crackdown on benefits, with the jobless who have paid little in taxes seeing their handouts cut by 30 per cent.

And instead of receiving Universal Credit in cash, claimants would get a 'Back To Work' card that could not be used to buy alcohol, cigarettes, withdraw cash or gamble.