Rishi Sunak says he hasn’t ruled out capping benefits so he can free up cash for tax cuts
RISHI Sunak says he hasn’t ruled out capping benefits so he can free up cash for tax cuts.
The Treasury is reportedly looking at severing the link to welfare payments with wages — which have rocketed amid the inflation crisis.
Quizzed on the idea at the G20, the PM said: “I definitely can reassure families we are always going to make sure we look after the most vulnerable. Benefits this year have gone up by ten per cent, which is a huge amount, obviously.”
Speaking at the summit in India, he added: “By historical standards, 10 per cent is a significant increase. That’s the right thing to do given the challenges that families have with the cost of living.”
Pressed on if he’d keep the link, he said: “It wouldn’t be for me to speculate on future things.”
A record 5.2million get out-of-work benefits.
Yesterday, The Sun reported how Jeremy Hunt is also weighing up cutting benefits in real terms to allow for tax cuts ahead of the election expected next year.
Treasury officials have drawn up money-saving options ahead of his Autumn statement including halting lifting working benefits in line with inflation.
The move would then give the Chancellor the maximum headroom to slash taxes in his Spring Budget next year.
Cabinet Minister Mel Stride said this week that welfare changes would make it more difficult for working-age Brits to get disability benefits.
The change would not come into force until after the election but those who are too sick to work has grown to nearly three million after the pandemic.
Ministers say they are committed to the so-called triple lock that guarantees the state pension will go up by the highest of inflation, the rise in wages or 2.5 per cent.