Just a day after her Government performed a U-turn by scrapping the planned 45p tax cut for the highest earners, Truss faces a new battle 8 Tory MPs have so far suggested they want the Prime Minister to raise benefits in line with inflation – not earnings
Inflation is currently around 10 per cent and would require much higher fiscal intervention. The Institute for Fiscal Studies said it would cost £7bn more next year to link universal credit to inflation, rather than to average earnings.
“I would need a lot of persuading to move away from that,” he said. “But I wouldn’t want to prejudge an argument that was put in front of me before the argument was made. Asked if the PM could get a non-inflation-linked rise to benefits through the Commons, Mr Green said: “Probably not, I think that there will be many of my colleagues who think that when you’re reaching for spending cuts, benefit payments are not the way to do it.”The former transport secretary has also stepped up the pressure on the PM to act.
“It doesn’t make any sense. Otherwise, the rest of society gets support, but they end up getting less and relatively they’re the ones that need it most.”He told a fringe event at the Tory conference: “I cannot see how they can refuse to increase in line with inflation given the pledges that have been made and given the current situation of a very significant cost-of-living crisis.
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