Badenoch plans benefit cuts for some under-25s and hints at inheritance tax axe

Kemi Badenoch has defended Conservative plans to axe benefits for some under-25s. As the party's conference opened in Birmingham, she also hinted the Conservatives could scrap the 40 per cent inheritance tax. On the BBC's Sunday with Laura Kuenssberg, she was asked whether the party risked being seen again as the "nasty party". She replied: "It's the common sense party."

The welfare plans also include pre-loaded cards for claimants, who would be banned from spending them on alcohol, cigarettes and gambling. Separately, the party has set out a £700million plan to extend free childcare to parents earning more than £100,000. Ms Badenoch also said the Conservatives would keep the state pension triple lock. None of these are law yet, because they are proposals from a party in opposition that, according to the Daily Mirror, is struggling in the national polls.

The "nasty party" label goes back to 2002, when Theresa May, then Tory chairman, told the party conference to face the "uncomfortable truth" about how voters saw it. Critics say the label fits again. Ms Badenoch says she is simply a "classic old-school Conservative" who believes in people working hard and being rewarded for that effort.

What the Conservatives have proposed on welfare

According to the Mirror, in recent weeks the Conservatives have proposed axing benefits for some under-25s and bringing in pre-loaded cards for claimants. There were also reports over the weekend of plans for spending cuts going beyond the £47billion announced last year, if the party wins back power. Ms Badenoch told the BBC: "We look after those who can't look after themselves. Welfare should be a safety net, not a lifestyle."

She was less clear about the evidence. Asked how many people she believed were cheating the benefits system, she said: "I don't have exact figures for you," adding that her team had done the research. The most recent figures, reported by the Mirror, show overpayments due to fraud made up 2.2% in 2024-2025. That was a drop of 0.5% compared with 2023-2024, the last full years the Tories were in power.

TUC boss Paul Nowak told the Mirror the Tories wanted to "drag Britain back to the same failed austerity economics that hollowed out our public services and hit the most vulnerable hardest". Ms Badenoch argued the old approach had already failed. She asked why, if the party had been doing so well, it had suffered "such a terrible defeat in 2024".

Who could be affected by each plan

The details families most need have not been published. These include which under-25s would lose out, which benefits would be cut and who would be exempt. The reports say only that the cut would apply to "some under-25s", and it is not yet known how the pre-loaded cards would work or which claimants would get them.

According to the Mirror, the 40 per cent inheritance tax currently applies to estates worth more than £325,000. Relief on £350,000 of the value of a main home means the effective threshold is £1million for most married couples. Ms Badenoch told the Sunday Times: "It is morally right that people don't get taxed twice." She hinted at abolishing the tax but did not confirm it as policy.

The childcare plan would end the "cliff edge" that stops parents earning more than £100,000 from getting free childcare. Asked whether someone earning £1million would still qualify, Ms Badenoch said "it doesn't matter what you earn". Early Years Alliance CEO Neil Leitch said the limit had caused problems because it is based on individual rather than household income. But he called it "disappointing" that the plan helps only higher earners and not the families "who are in most need of support".

Key numbers

• £325,000: the estate value above which inheritance tax is currently charged.
• 40 per cent: the inheritance tax rate Ms Badenoch has hinted the party could scrap.
• £700million: the reported cost of the Conservative plan to extend free childcare to higher earners.
• £100,000: the earnings level above which parents currently lose free childcare.
• 2.2%: benefit overpayments due to fraud in the most recent figures.
• £47billion: the spending cuts announced last year, which new Tory plans are reported to go beyond.

Nothing changes yet for claimants or families

These are opposition proposals, not government policy. No benefit, tax or childcare rule changes because of this conference. The Conservatives would have to win a general election before any of it could happen, and no start dates, consultations or full costings have been published. Ms Badenoch said her team could send the BBC its figures on benefit cheating, but these have not been reported.

The triple lock is also being debated across the parties. According to the Mirror, Andy Burnham told Labour's conference last week that Labour would reform the guarantee to fund a National Care Service. Ms Badenoch says the Conservatives would keep it.

What you can do now

If you or someone in your family is under 25 and claims benefits, start by checking exactly what you get today. That way you can judge any firmer plans when they are published. The government lists free and anonymous benefits calculators that estimate what you could be entitled to and how your payments would change if you start work or increase your hours. You will need accurate details of your savings and income, including your partner's.

On inheritance tax, nothing has changed and the current thresholds still apply. Before acting on a party hint, check whether your estate is close to the £325,000 level, or the higher threshold for married couples who own a home. A qualified adviser can explain how the current rules apply to you.

Parents earning close to £100,000 should remember that the childcare cliff edge is still in place. It is based on each parent's own income, not the household's. If you are unsure what you can claim, a local benefits adviser can check it for you.

Your questions answered

Which under-25s would lose their benefits?

The reports say only that the Conservatives have proposed axing benefits for "some under-25s". The rules on who would be affected, which payments would go and who would be exempt have not been published yet.

Is inheritance tax being scrapped?

No. Ms Badenoch hinted to the Sunday Times that the Conservatives could scrap it, but she did not confirm it as policy, and the party is in opposition. For now the 40 per cent rate still applies above the current thresholds.

Will the state pension triple lock stay?

Ms Badenoch said the Conservatives' policy is to keep it, despite disquiet among MPs about the cost. According to the Mirror, Andy Burnham told Labour's conference last week that Labour would reform it to fund a National Care Service.