If the Conservatives have their way on winning the next year's general elections, then they will be piloting a Welfare Benefits Card supposedly in Newcastle upon Tyne in 2015.

Exact details have not been disclosed as this is very much in its planning stage and it is very unlikely that if Labour and Lib-Dems form a coalition government, that they will implement the scheme.

The government has unveiled their thought process at its recent Conference, because of the original pilot held by the Australian government in its Northern Territories and parts of Queensland, introduced back in 2007.

The Welfare Benefits cards will be given to claimants to only buy absolute essentials which will include food, clothes, health products, furniture and fuel, there is no mention at the moment ,about rent being paid direct to landlords.

 

The Australian card is in effect a "reusable" credit card and could only be used at approved stores and businesses for the essential items

The card cannot be used to take out cash at ATM's or cash back from stores or gift vouchers, with the claimant's receiving "top ups" every fortnight.

 

Between 50 - 70 per cent of the claimants benefits is "ring fenced" into the card and there is a daily budget of A$1,500 that can be spent. If claimants do not use up all of their budget on the card, then it is counted as savings.

The other 30- 50 per cent of the allowance, dependant on their circumstances is given to them as cash.

The Australian Government has announced that the pilot has been a great success and they are now planning to roll the cards out countrywide.

Richard Merrick of PIMS, said: " We cannot comment on the social implications of such a scheme, but we do ask the question.

"What is the point of quarantining only what is deemed as most essential items when surely the top priority (essential) is having a roof over one's head ?

"The Government once again is ignoring the possibility that under the Universal Credit scheme of payments, landlords are not properly protected from the minority of people who will take advantage....knowing only too well that whatever the outcome they will, at the worst case, be re-housed."