A CABINET Minister has dramatically broken ranks with Liz Truss and admitted that benefits SHOULD be uplifted in line with inflation.
Penny Mordaunt, who is Leader of Commons, told Times Radio this morning that she’s “always supported” Universal Credit keeping pace with inflation.
Cabinet Minister Penny Mordaunt broke ranks with Liz Truss today to reveal she supports uprating benefits in line with inflation
In a move away from current government thinking, the minister said: “I have always supported, whether it’s pensions or whether it’s our welfare system, keeping pace with inflation.
“It makes sense to do so. That’s what I voted for before and so have a lot of my colleagues.”
For weeks the PM has refused to commit to hiking benefits in April 2023, when they are due for a change.
This morning, Ms Truss told LBC the government was always “going to have to make decisions about how we bring down debt as a proportion of GDP in the medium term”.
But the PM added that she’s “very committed to supporting the most vulnerable.”
Work and Pensions Secretary Chloe Smith is currently reviewing the situation with Ms Truss, and should come to a decision around November.
This morning Ms Smith refused to answer whether or not she’s in favour of raising benefits.
But Ms Smith did say: “The principles that I’m using in my approach to that decision certainly begin with protecting the most vulnerable.”
With inflation sitting at a whopping 9.9 per cent, UC claimants could experience a chunky real terms pay cut without an uplift.
The issue has exploded into a full-blown row at the Tory party conference, which is currently underway in Birmingham.
Some Conservative MPs have publicly lambasted the PM for not committing to the policy, especially because Rishi Sunak did so earlier this year when he was Chancellor.
Speaking at a fringe panel, former party leader Sir Iain Duncan Smith said: “It’s a peculiar debate to be having… if you want growth the group most likely to spend the money you give to them is those on welfare, rather than high earners.
“There is a positive from updating benefits with inflation if you want the economy to grow.”
Adding fuel to the fire, Tory heavyweight Michael Gove said he’d need “a lot of persuading” to move away from supporting keeping benefits and inflation aligned.