A bold new proposal by Reform UK leader Nigel Farage could see millions of low-paid British workers receiving tax-free payouts of up to £1,000 annually. This policy is part of the party’s broader strategy to overhaul the country’s tax system, using funds raised from wealthy newcomers to benefit those at the bottom of the income scale.
According to the party, the plan is aimed at improving the financial stability of the UK’s lowest earners by redistributing funds from a one-off £250,000 fee levied on wealthy foreigners and returning expats. The initiative, dubbed the “Britannia Card,” promises tax relief for the rich in exchange for contributions that could directly benefit the poorest sectors of the workforce.
The Britannia Card: A Wealth Redistribution Policy
Reform UK has outlined a new plan that would provide a financial boost to low-income workers. Under the policy, wealthy individuals who meet certain criteria would pay a £250,000 fee in exchange for a special tax regime.
This one-time payment would then be redistributed to the UK’s poorest full-time workers, those in the bottom 10% of income earners. According to Reform UK’s spokesperson, the goal is to “repair the social contract” by ensuring that the wealth generated by the affluent is directed towards those who need it most.
The policy offers additional incentives for high-net-worth individuals, including a 10-year residency permit and the ability to avoid UK inheritance tax. While details remain unclear, the party estimates that up to 2.5 million low-paid workers could benefit from annual payouts of £600 to £1,000.
Payments would be processed automatically via HMRC, ensuring that those eligible would receive the funds without needing to apply.
Labour’s Criticism and Concerns Over Impact
The Labour Party has been quick to critique the proposal, arguing that it would essentially allow the wealthiest individuals to bypass taxes they would otherwise owe in the UK. A Labour spokesperson described the policy as a “golden ticket” for billionaires, enabling them to avoid paying their fair share.
They further expressed concerns that the policy could reduce tax revenues from the wealthy, forcing working families to make up the shortfall through increased taxes or potential charges on NHS usage.
In contrast, Reform UK has defended the plan, insisting that it will benefit the country’s low-paid workers while helping to attract wealthy individuals who can contribute to the economy.
According to Farage, the policy represents a pragmatic approach to reforming the tax system and ensuring that the wealthiest members of society do their part in addressing inequality.
