Over the past twelve years, the UK has seen a marked increase in poverty and economic inequality. While numerous factors have contributed to this situation, an undisputedly important role has been played by the continuous program of welfare spending cuts designed and executed by a series of Conservative governments. To alleviate the potential for the unpopularity of austerity measures, the Conservatives have attempted to put a positive spin on their policies by making a series of core claims emphasizing the beneficial effects of the welfare reform. Using the method of Critical Discourse Analysis (CDA), this paper examines these claims and offers a critique of each of them. In doing so, the research seeks to expose the use of traditional stereotypes (especially that of the “deserving” and “undeserving” poor) in the government’s rhetoric. The paper draws on a corpus of political speeches and media appearances of Conservative politicians, as well as on sociological reports and newspaper coverage. The analysis is principally focused on the two governments led by David Cameron, although some attention is also devoted to subsequent Conservative administrations.