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Liz Truss refuses to say benefits will rise in line with prices Liz Truss refuses to say benefits will rise in line with inflation
(about 1 hour later)
Liz Truss has refused to say benefits will rise in line with prices, as she faces questions over how to pay for her government's tax-cutting plans.Liz Truss has refused to say benefits will rise in line with prices, as she faces questions over how to pay for her government's tax-cutting plans.
Her predecessor, Boris Johnson, pledged benefits would rise with inflation.Her predecessor, Boris Johnson, pledged benefits would rise with inflation.
Asked whether she would maintain this commitment, Ms Truss told the BBC the government had to be "fiscally responsible" and bring debt down.Asked whether she would maintain this commitment, Ms Truss told the BBC the government had to be "fiscally responsible" and bring debt down.
However, Commons leader Penny Mordaunt said it "makes sense" to increase benefits in line with inflation. But cabinet minister Penny Mordaunt said it "makes sense" to increase benefits in line with inflation.
"We want to make sure that people are looked after and that people can pay their bills. We are not about trying to help people with one hand and take away with another," the cabinet minister told Times Radio. "We want to make sure that people are looked after and that people can pay their bills. We are not about trying to help people with one hand and take away with another," the Commons leader told Times Radio.
Asked if she welcomed Ms Mordaunt, who is a senior member of her team, making her views public, Ms Truss told broadcasters no decision on benefits had been made yet and "I look forward to having those discussions".
Certain benefits, including disability benefits and carer's allowance, must increase in line with inflation by law.Certain benefits, including disability benefits and carer's allowance, must increase in line with inflation by law.
However, for working-age benefits like Universal Credit no decision has yet been made on whether a rise will be linked to prices or wages.However, for working-age benefits like Universal Credit no decision has yet been made on whether a rise will be linked to prices or wages.
Kwarteng to set out debt plan earlier than plannedKwarteng to set out debt plan earlier than planned
Chancellor U-turns on plans to scrap top tax rateChancellor U-turns on plans to scrap top tax rate
Speaking in her first BBC interview since the U-turn on plans to scrap the 45p rate of tax for higher earners, Ms Truss reiterated that the government could have laid the groundwork better for the measure.Speaking in her first BBC interview since the U-turn on plans to scrap the 45p rate of tax for higher earners, Ms Truss reiterated that the government could have laid the groundwork better for the measure.
She said the government was listening and does "reflect on where we could have done things better".She said the government was listening and does "reflect on where we could have done things better".
The interview came before the chancellor confirmed he would bring forward his medium-term fiscal plan, which will outline how the government plans to cut the UK's debt, "shortly" rather than at the end of November.The interview came before the chancellor confirmed he would bring forward his medium-term fiscal plan, which will outline how the government plans to cut the UK's debt, "shortly" rather than at the end of November.
The PM is facing opposition from some Tory MPs over how the government will pay for its growth package.The PM is facing opposition from some Tory MPs over how the government will pay for its growth package.
Chancellor Kwasi Kwarteng's tax-cutting mini-budget on 23 September saw the pound's value plummet, borrowing costs soar, and the Bank of England bail out pension funds.Chancellor Kwasi Kwarteng's tax-cutting mini-budget on 23 September saw the pound's value plummet, borrowing costs soar, and the Bank of England bail out pension funds.
On Monday, following a growing backlash from Tory MPs, Mr Kwarteng announced the government was dropping its plan to scrap the top rate of tax.
Speaking to Radio 4's Today programme, Ms Truss insisted scrapping the top rate of tax had not been a "core part" of her economic growth package.Speaking to Radio 4's Today programme, Ms Truss insisted scrapping the top rate of tax had not been a "core part" of her economic growth package.
She also said it showed she was leading a "listening government" that was responding to voters' concerns.She also said it showed she was leading a "listening government" that was responding to voters' concerns.
Asked about whether she would commit to increasing benefits in line with inflation, Ms Truss said: "We are going to have to make decisions about how we bring back down debt as a proportion of GDP in the medium term." In a later interview, Ms Truss was asked several times whether she trusted her chancellor following the U-turn.
She added that she was "very committed to supporting the most vulnerable", including providing an extra £1,200 to the poorest households. Sidestepping the question, she said: "I work very, very closely with my chancellor, we're very focused on getting the economy growing."
"So we have to look at these issues in the round. We have to be fiscally responsible."
"I know the plan put forward only 10 days ago has caused a little turbulence, I get it..""I know the plan put forward only 10 days ago has caused a little turbulence, I get it.."
"I know the plan put forward only 10 days ago has caused a little turbulence, I get it..""I know the plan put forward only 10 days ago has caused a little turbulence, I get it.."
Asked about whether she would commit to increasing benefits in line with inflation, Ms Truss told the BBC: "We are going to have to make decisions about how we bring back down debt as a proportion of GDP in the medium term."
She added that she was "very committed to supporting the most vulnerable", including providing an extra £1,200 to the poorest households.
"So we have to look at these issues in the round. We have to be fiscally responsible."
In May this year, then-chancellor Rishi Sunak said benefits would be uprated by this September's Consumer Prices Index measure of inflation, which is currently 9.9%, subject to a review by the work and pensions secretary.In May this year, then-chancellor Rishi Sunak said benefits would be uprated by this September's Consumer Prices Index measure of inflation, which is currently 9.9%, subject to a review by the work and pensions secretary.
Mr Kwarteng has declined to commit to the policy, though the government has pledged to increase state pension contributions in line with inflation.Mr Kwarteng has declined to commit to the policy, though the government has pledged to increase state pension contributions in line with inflation.
Failing to keep benefits in line with rising prices would leave some of the poorest households facing a real-terms cut in their incomes.Failing to keep benefits in line with rising prices would leave some of the poorest households facing a real-terms cut in their incomes.
Conservative MP Mel Stride, who chairs the Commons Treasury Committee, said it would be "a really tough call to make" if he was asked to vote for uprating benefits in line with wages rather than inflation.Conservative MP Mel Stride, who chairs the Commons Treasury Committee, said it would be "a really tough call to make" if he was asked to vote for uprating benefits in line with wages rather than inflation.
He told BBC Radio 4's Today programme he "would have to think long and hard about that" because of the "strong real-terms squeeze on those benefits already".He told BBC Radio 4's Today programme he "would have to think long and hard about that" because of the "strong real-terms squeeze on those benefits already".
Former Work and Pensions Secretary Damian Green told the programme the policy would "probably not" get through the Commons.Former Work and Pensions Secretary Damian Green told the programme the policy would "probably not" get through the Commons.
"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 Tory MP said. Tory colleague and former cabinet minister Michael Gove told Times Radio he would need "a lot of persuading" to stop benefits from rising in line with inflation, while former Housing Secretary Esther McVey said it would be a "huge mistake" not to give a cost of living increase to benefit payments.
Former cabinet minister Michael Gove told Times Radio he would need "a lot of persuading" to stop benefits from rising in line with inflation, while former Housing Secretary Esther McVey said it would be a "huge mistake" not to give a cost of living increase to benefit payments.
The Joseph Rowntree Foundation said the government must urgently reassure those on the lowest incomes that it "won't renege" on its promise to raise benefits in line with inflation.The Joseph Rowntree Foundation said the government must urgently reassure those on the lowest incomes that it "won't renege" on its promise to raise benefits in line with inflation.
Principal policy adviser Katie Schmuecker said: "Liz Truss felt able to give that assurance to pensioners, now she must be clear that she won't target cuts at those on the lowest incomes who have been struggling for months to feed their families, cook hot food and heat their homes." Principal policy adviser Katie Schmuecker said: "Liz Truss felt able to give that assurance to pensioners, now she must be clear that she won't target cuts at those on the lowest incomes."
Labour's shadow chancellor Rachel Reeves said: "The idea that the government can afford to give tax cuts to the wealthiest, but not uprate benefits in line with inflation, I think is grotesque."Labour's shadow chancellor Rachel Reeves said: "The idea that the government can afford to give tax cuts to the wealthiest, but not uprate benefits in line with inflation, I think is grotesque."
Liz Truss' claims on the economy fact-checkedLiz Truss' claims on the economy fact-checked
Government's U-turn won't be forgottenGovernment's U-turn won't be forgotten
Meanwhile, former Home Secretary Priti Patel is set to accuse Ms Truss and Mr Kwarteng of "spending today with no thought of tomorrow" at a fringe event at the Conservative Party Conference on Tuesday, according to The Times.Meanwhile, former Home Secretary Priti Patel is set to accuse Ms Truss and Mr Kwarteng of "spending today with no thought of tomorrow" at a fringe event at the Conservative Party Conference on Tuesday, according to The Times.
"I want to see our party regain its credibility by restoring its commitment to sustainable public spending," she is expected to say."I want to see our party regain its credibility by restoring its commitment to sustainable public spending," she is expected to say.
"Right now, we have got into a pattern of borrowing huge amounts to fix today's urgent problems or generate short-term populist headlines. "Right now, we have got into a pattern of borrowing huge amounts to fix today's urgent problems or generate short-term populist headlines."
"Each time, it seems that there's a good case, but what does this mean for future generations?"
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