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Liz Truss refuses to say benefits will rise in line with inflation Liz Truss refuses to say benefits will rise in line with inflation
(about 4 hours later)
Watch: Liz Truss declines to say she trusts Chancellor Kwasi KwartengWatch: Liz Truss declines to say she trusts Chancellor Kwasi Kwarteng
Watch: Liz Truss declines to say she trusts Chancellor Kwasi KwartengWatch: Liz Truss declines to say she trusts Chancellor Kwasi Kwarteng
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, the prime minister told the BBC the government had to be "fiscally responsible" and bring debt down. Ms Truss is coming under growing pressure from her own MPs to maintain the commitment, with minister Penny Mordaunt arguing it "makes sense".
But cabinet minister Penny Mordaunt said it "makes sense" to increase benefits in line with inflation. The PM told the BBC a decision hadn't yet been made but that the government had to be "fiscally responsible".
"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. Speaking to Times Radio, Ms Mordaunt said: "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."
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". Asked if she welcomed Ms Mordaunt making her views public, Ms Truss said: "I look forward to having those discussions."
Welsh Secretary Robert Buckland was asked by BBC Newsnight if he wanted to see benefits rise in line with inflation and said: "Every Conservative government that I've been part of has maintained the safety net, and I'm sure this one will do the same." Chancellor Kwasi Kwarteng said he would not "get drawn into the debate", but stressed his attachment to "compassionate conservatism"; while Work and Pensions Secretary Chloe Smith would not be drawn.
Welsh Secretary Robert Buckland, asked by BBC Newsnight if he wanted to see benefits rise in line with inflation, said: "Every Conservative government that I've been part of has maintained the safety net, and I'm sure this one will do the same."
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. Questions about the government's policy on benefits come during a difficult week for the prime minister.
She said the government was listening and does "reflect on where we could have done things better". On Monday, Ms Truss's authority took a blow when she was forced by her own MPs to U-turn on her plan to reduce tax for higher earners.
However she told Radio 4's Today programme scrapping the top income tax rate had not been a "core part" of her economic growth package. Speaking in her first BBC interview since the U-turn, Ms Truss reiterated that the government could have laid the groundwork better for the measure.
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. She said the government was listening and did "reflect on where we could have done things better" but said the top income tax rate had not been a "core part" of her economic growth package.
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.
In a later interview, Ms Truss was asked several times whether she trusted her chancellor following the U-turn.
Sidestepping the question, she said: "I work very, very closely with my chancellor, we're very focused on getting the economy growing."
"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."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.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.""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.
A number of senior Conservatives, including former ministers Michael Gove and Esther McVey, have called for benefits to rise in line with inflation.
Mel Stride, who chairs the Commons Treasury Committee, said he "would have to think long and hard" about whether to vote for uprating benefits in line with wages instead because of the "strong real-terms squeeze on those benefits already".Mel Stride, who chairs the Commons Treasury Committee, said he "would have to think long and hard" about whether to vote for uprating benefits in line with wages instead because of the "strong real-terms squeeze on those benefits already".
And former Work and Pensions Secretary Damian Green told the BBC the policy would "probably not" get through the Commons.And former Work and Pensions Secretary Damian Green told the BBC the policy would "probably not" get through the Commons.
However, Tory MP Lee Anderson said it "does not seem fair" for those on benefits to get "inflation-busting" increases of as much as 10%, while public and private sector workers are offered pay rises of 2-4%.However, Tory MP Lee Anderson said it "does not seem fair" for those on benefits to get "inflation-busting" increases of as much as 10%, while public and private sector workers are offered pay rises of 2-4%.
Katie Schmuecker, from the Joseph Rowntree Foundation, 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." Meanwhile, former Home Secretary Priti Patel accused the government of "spending today with no thought for tomorrow" at a fringe event at the Conservative Party Conference.
Labour's shadow chancellor Rachel Reeves also criticised the lack of commitment to the move, saying: "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 accused the government of "spending today with no thought for tomorrow" at a fringe event at the Conservative Party Conference. Labour's shadow chancellor Rachel Reeves criticised the lack of commitment to the move, saying: "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."
"I want to see our party regain its credibility by restoring its commitment to sustainable public spending," she said. Tuesday also saw confirmation the chancellor 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.
Ms Truss was asked several times whether she trusted her chancellor following the U-turn.
Sidestepping the question, she said: "I work very, very closely with my chancellor, we're very focused on getting the economy growing."
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