Benefits claimants could see a real term cut in what they receive if the Government decides to raise payments in line with wages, rather than the higher rate of inflation. It is one way of saving money that ministers are considering as they look for ways to cut public spending amid Britain's economic woes.
In May 2022, former Chancellor Rishi Sunak promised to uprate benefits next year in line with the Consumer Price Index measure of inflation in September, Birmingham Live reports. That figure was 10.1 per cent, it was revealed last week.
However, since then the economic outlook has become much worse as the Government's mini-budget in September sent markets into turmoil, worsening an already difficult situation caused by a struggling global economy. It means the new Chancellor Jeremy Hunt has warned that "difficult decisions" will have to be made before he unveils his Medium Term Fiscal Plan on October 31, which will set out his plans to reduce the national debt.
